Getting a student bank account is a very good idea for numerous reasons. Banks will often target student’s, with the belief that they can secure their life-long membership by securing their University account. There are numerous benefits offered, but these differ from bank-to-bank, and it is therefore advised to choose a bank that will suit your individual needs. In this article, we take a look at the different accounts available, which can help you make an informed decision.
First of all, there are some general traps to avoid. The first temptation might be to choose the bank account which offers the best overdraft facility. Having a smaller overdraft will improve your discipline – having a huge overdraft can lead to you becoming lax about your finances. Suddenly when your studies finish – you will be in a poor situation. Moreover, don’t be taken aback by the offer of freebies or cashback rewards – while good in the short-term, in the long-run it probably won’t be worthwhile. However, it should be noted that an interest free overdraft is unique to student accounts – and therefore could be taken advantage of. Be sure to look into the repayment agreement of an overdraft and be well aware for what you are signing up for.
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Opening an Account
For UK students, this process should be quite simple. Some sort of identification is necessary, while evidence of your student status – such as an acceptance letter from your institution too will help. While you can apply for a student bank account online, you will still need to utilise your local branch at some point in the process. Up next, we review the ten most popular student bank accounts, which should help you to make an informed decision.
This table features ten different bank account options. Being unbiased, they are listed alphabetically. You can therefore look at each account and choose whichever account suits your needs best. There is the name of the bank, name of the account, total overdraft, interest levels and details of any incentives offered.
Student Bank Accounts 2017-18
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As you can see from the list, there are many different bank accounts to consider. In general, we find Santander and HSBC student accounts are most popular. However, if you plan on doing a lot of coach travel, consider RBS or NatWest. Yet there are other incentives with other accounts – try and find something that suits you. Remember, if after your studies you want to change your account – it is easy to do so.