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Student bank accounts

How to choose the right bank account

There are different bank accounts available so shop around to find the best deal to suit your needs, such as an interest-free overdraft or online banking service. It is important to know which banks will be accessible to you during your training, so check that there is a branch at or near to your training provider. Speak to banks direct to see if they offer the services you require or go to www.moneyfacts.co.uk which lists the current studentoffers from banks.

Look out for....

Interest-free overdrafts: one of the most useful things you can have as a student is an interest-free overdraft. If you become overdrawn, you will not be charged interest. This will save you money as you should not then need to run up a bill on a credit card. But remember that an interest-free overdraft is a loan; you will have to pay back the money after you finish your training.

Graduate accounts: If you are in the final year of your degree course, ask your bank if they will offer you a Graduate Account after you graduate. Graduate accounts usually allow you to keep an interest-free overdraft for three years after you complete your degree course, which gradually decreases in size each year. You may also be offered discounts in certain stores for goods if your bank provides you with a Graduate Card.

Online banking: checking your account online can help you stick to your budget, because it can keep you up to date with your available funds and spending regime.

Try not to use..

Credit/store cards: credit cards and store cards may seem extremely useful when you are in a dire financial situation. They can be more trouble than they are worth if you have to pay high interest rates because you cannot pay for the goods before the end of the following month.

Overdrafts: certain banks will offer authorised overdraft amounts with agreed interest rates. But remember, if you go over the authorised overdraft limit, the interest rate will increase drastically.