A student account is a bank account designed exclusively for university students. They are still based on standard accounts supplied by banks- no crazy surprises, however students are treated to extra benefits such as freebies and interest free overdrafts.
Tips for choosing your student account.
- Don’t be lured by freebies.
Whilst students are usually encouraged to grab hold of almost every freebie they can, it’s not necessarily the best idea when choosing your student bank account. £20 worth of freebies is pitiful compared to a large interest-free overdraft for 3 years or more… Select the most appropriate accounts financially for you, then decide which perks make it worth it out of them.
- Assess the overdraft.
You might not think you need one initially, but it’s a good buffer to have just in case. Overspend without one and you’ll be hit by hefty fees and interest rates. Just remember, while its (likely!) the only time in your life you will have a 0% interest overdraft, don’t go crazy, you do have to pay it back eventually- have a plan!
- Be smart. Not loyal.
You don’t have to use the same bank account for everything. Savings and ISA can be kept in a different account to your student account unless it happens to offer you the best deal too. You may even want more than one current account, so you’ve got somewhere to stash your loan and then trickle it into the account you use for daily spending to avoid spending it all in one. Revolut and Monzo are great current accounts for this, with the app helping you to easily view your spending and make saving easy!
Visit Save the Student for a great, easy to view comparison of 2019’s Student Bank Accounts at https://www.savethestudent.org/money/student-banking/student-bank-accounts.html (scroll to the bottom!)