Choose the student bank account that’s right for you...
MANY students starting university life for the first time will also be getting an education in what it’s like to manage their finances independently.
The bank that’s closest to your campus may seem convenient, but its student account may not be the best one for your individual needs.
Rachel Springall, a finance expert at Moneyfacts.co.uk, says: “Students searching for a bank account would be wise to weigh up any perks that may be on offer, with the interest-free overdraft that the account carries.
“During the years of study, a generous interest-free limit would provide students with a financial safety net. Halifax and Santander offer up to £1,500 from the outset of year one, which is generous.
“It is worth noting that overdrafts are not guaranteed, “and they will need to be paid back once a consumer ends their studies.”
Other banks have perks for students looking to save on travel expenses.
For example, Santander offers a Railcard and NatWest offers a Coachcard. Some student bank accounts on the market also have cashback offers.
Rachel also sounds a note of caution about overdrafts, saying: “It may be tempting to dip into a generous interest-free overdraft, but students would be wise to consider taking on a part-time job and perhaps thinking of ways to save some cash if they can.
“Using a mobile budgeting app, like Money Dashboard, to keep a close eye on outgoings, and mobile apps like Chip to automatically save spare funds, could educate students who may be living away from home for the first time and want to budget or save.
“Taking out insurance for gadgets is also worth considering, as students may not be able to buy those outright should they break or – worse – are stolen.”
RACHEL says these four things can help students keep on top of managing their money:
Budget analysis tools and planning apps can help you keep on top of your overall finances.
Use your overdraft sparingly. Consider where you normally shop and eat when weighing up whether cashback perks and discount cards are worthwhile.
Make sure your gadgets are insured, or that you would have enough savings to replace them.