CHECKLIST: What to expect from a good Student Account

Good deals

While you are still a student is the perfect time to start controlling your personal finances and increase your credit rating. The bank of your choice should make it easy to enjoy the available services to help you through university and further ahead. When looking at the different possibilities aim for one that allows customizing the account to your needs.

Most banks will give you a choice between a current and a deposit account. The second one provides interest, but there might be restrictions and penalties on withdrawal of money. Choose an account that includes the following services.

• A chequebook – will allow you to pay for things with a cheque, make sure your bank gives you one from the start, free of charge.
• A debit card – giving you instant access to your money at cash machines and the ability to purchase goods and services by card transaction.
• Internet banking – 24 hour access to balance statements
• Direct banking – this option allows you to do most transactions over the phone, internet or by post. Banks often offer good incentives and free overdrafts for direct banking users.
• “Direct Debit” and “Standing Order” – the first means that a third party (i.e. electricity company) deducts a regularly owed amount from your account. The amount can vary only if the company lets you know. A standing order carries the deduction on until you give the bank new instructions.
To differentiate, banks offer other services that make student accounts more appealing. Some of these include:

• Interest-free overdraft – larger banks often provide interest-free overdraft. The best deals start at around ₤1000 for the first year of university and increase periodically. Ask the bank whether it will decrease each year after graduation.
• Extendable overdraft –in case of emergencies
• Credit card – limits vary from lender to lender. Some cards offer 0 per cent interest for the first six months.
• Student advisors (face-to-face in a branch, or over the phone)