Best Student Bank Account Autumn 2011
It’s coming up to the time of year when it’s best to sort out next Uni years finances; whether your a fresher or not it’s best to check you’re getting the best deal out there.
Here are the guidelines to ensuring you get the most for your money and ultimately can afford an extra pint or two!
1. Get the most money on you can on a 0% overdraft – As long as you have the UCAS offer letter in hand most banks will be able to open your student account now, why wait until you’re trying to pack or even worst until you arrive when you can have it all sorted now?! Another plus being you can start using it straight away
I’m now going to point out that this 0% overdraft is NOT free money, you have to pay it back at some point so don’t go mad, it is useful to have if you’re going to be clever with it!
2. Utilise everything your bank will give you – if you do get a large 0% overdraft that you know you won’t require mid way through the year then use the money to make money! Depending on how long you have the overdraft for an ISA or similar scheme can earn you interest and at the end you just pay back the overdraft with a little extra spending money in your pocket!
3. Free gifts aren’t always worth it – Some student bank accounts offer gimmicky free gifts like rail cards or insurance. However if their overdraft and rates are rubbish then it’s so not worth the effort. For the sake of a £30 rail card you can earn way more by implementing stage two so don’t get blinded by all the shiny paraphanalia that banks shove under your nose.
4. Do your homework – a quick search of price comparison websites can save hours tramping up the high street. Moneysupermarket.com can give an overview of current and student accounts that could save you time and effort and allow more time in the beautiful sunny weather (!). Money saving expert is also an excellent website they have last years best student accounts tabled and hopefully will update to this years soon, surprisingly Co-op came out top with the best deal – somewhere most of you probably wouldn’t have bothered looking.
This is one of the easiest ways to save and even make money at uni, there are however some rules:
- Never ever go over your overdraft limit – astronomical fees and bank charges, up to £35! Also beware of your 0% limit some accounts offer you a large overdraft with only some covered by the 0% and the rest with stupidly large interest rates guaranteed to sting you if you’re not careful.
- Don’t borrow the whole whack unless you are using it in a saving scheme to earn interest, you WILL have to pay it back and it’s one less headache on graduation if you don’t have to add a massive overdraft to your uni debts.
- This overdraft malarkey WILL count towards your credit score so be reasonably sensible. You will be rated on all your financial data so any massive overdrawing or stupid mistakes could cost you loads in the future, a messy credit rating will be hard to rectify so it’s just easier to be sensible and stick within the limits!
- Learn to budget without your overdraft, your overdraft should never be counted as income. It’s should only be there as a backup, in case of emergencies or a short term quick cash option that you have the income to repay.
The ultimate message is shop around and look deeply into what you are being offered. Some of the superficial bells and whistles are rubbish compared to the rates offered by other establishments. Please don’t spend all of your overdraft or even worse go over the limit, if you think this is likely do what I do; have your student account just for your student loan and a normal no overdraft current account as your main account, that way you can’t spend money you don’t have!
Always remember as the customer you hold all the power, keep looking for the best deal and don’t be afraid to swap. After graduation don’t just stick with the same bank because it’s easier, look around for the best graduate bank account and ensure you get the best for your money. Good Luck, let me know if you find an excellent deal out there that you can recommend to others.
