You're a student - and you probably already have a bank account. But you may find your current bank account is not especially for students, and it doesn't offer you overdrafts, good rates or the benefits that a good student account should. There are loads of accounts designed especially for students with many features to make your life easier.
Below we have a list of student bank accounts offerings this term and the details you should know.
Bank | Account Information | Maximum Overdraft | Incentives | Apply | |
---|---|---|---|---|---|
Barclays Student Account Consumer Moneyfacts Award Best Student Account Provider 2011, up to £2,000 interest free overdraft |
£3,000 (£2,000 interest free) | Save £75 on a new monthly mobile phone contract with Phones4u, Free Text alerts | Go to site | ||
Representative example:Up to £2,000 - 0% interest pa (variable), £2,001 to £3,000 - 8.9% interest pa (variable) | |||||
Santander Student Bank Account All the features of a current account, plus an interest free and fee free Arranged Overdraft |
£2000 interest free | Free laptop, phone and gadget insurance for 3 years when you pay £500+ in per term. Interest free overdraft | Go to site | ||
Representative example: 0% EAR (variable) Arranged Overdraft. No Daily Arranged Overdraft fees apply. Assumed credit limit: £1,000. Actual amount may differ | |||||
Lloyds TSB Student Account Up to &poound;1,500 interest free overdraft as well as mobile and internet banking |
£1,500 interest free | Commission free foreign currency, free NUS extra card for 3 years, 3 year YHA membership | Go to site |
Banks want you! They know that if you open an account with them you'll probably stay with them. You may not have much money now but in the future you'll hopefully have a great job, lots of money, and guess what - you'll probably be with the same bank. They know the chances of you moving away are slim, so they want to get you early!
So, when you're looking to open a bank account, no matter what your current position is, remember, they want you. There are lots of banks who are all offering great stuff to attract you so read on and choose carefully. Make sure you know what they offer, what you can get from them, and that you can change banks if you want to.
For students, especially if you are at university, one of the main things to look out for is an overdraft. Others things include what interest rate you get on credit in the account, what you are expected to do after university (change accounts?), are there any account charges, and what other facilities do you get.
Overdraft: If you are a student you're probably going to need an overdraft. Nearly all student accounts offer an interest free overdraft some of which change amount year on year. Basically the bank will let you borrow money without you having to pay interest to help you get through your studies. There are a few things to be careful about though - please check out more about "interest free overdrafts" to learn more.
Incentives: Banks want you and some will offer you goodies to attract you. From a 5 year Young Persons Railcard (worth £100) to webcams, or up to £75, many of the student accounts come with an offer...
When you finish: Unfortunately you can't have a student account forever! Some banks move you over to another account right away after graduation (which means you start paying interest on your overdraft) whilst some give you up to 2 years extra without charging interest..
Fees: If you go over your limit, what happens? Most banks will charge you - but how much? We've detailed the charges for you so you know what's going to happen if you go over your agreed overdraft.
Interest Rates: How much are you going to be paying in interest, and how much interest are you going to be getting when your account is in credit?