Why get a student bank account?
Student bank accounts are a no brainer!
They’re designed specifically for you, and made to make your life easier!
It’s essential that you choose the right one for you. And you should consider a number of key factors, features, and perks.
It can be easy to get caught up in the marketing and sales tactics of the banks.
So, here is a student banking comparison to help you when making your choice.
A big student overdraft
It’s no secret that the maintenance loan from the government doesn’t cover the living costs of the average student. Unfortunately, this means that many need all the help they can get.
Thankfully, the banks have a nice little perk for students.
You can get a student overdraft that allows you to borrow money with 0% interest for the time that you’re at university!
You’d usually expect to get up to £2,000, but some banks like HSBC even offer an overdraft up to £3,000.
These amounts tend to be tiered. So, the longer you study the more you’ll be eligible to apply for.
The majority allow you at least one year after graduating to pay it back.
After this, they will start to charge interest or reduce the overdraft bit by bit.
So, it’s well worth checking the overdraft repayment conditions before you choose your account.
Student banking offers
The freebies that come with student accounts are usually seen as the most valuable perk. However, you should take them with a pinch of salt.
It’s easy for a bank to offer you something for free that you could either get from elsewhere or buy yourself for a small cost.
In recent years, the free stuff on offer has included 16-25 railcards, cash, and in-credit interest.
While these are good student banking offers, think carefully about their real value to you.
Weigh these up against the other big benefits, like the overdraft, as they could be much more useful.
Banking app features
In recent years, the banking market has been flooded by app-based banks, such as Monzo.
These banks haven’t entered the student current account market yet, but they’ve spurred the old-school banks to improve their apps.
One key feature of the app-based banks is the ability to budget on the go. While other banks have caught up, their offerings tend to differ wildly.
Check out their websites to get an overview of their apps and see if one would suit your budgeting style. It might seem like a small choice, but it could make a big difference overall.