University years are some of the best of your life. And for once, the banks are playing ball. Their generous offering of a special student bank account often comes with many perks, but making the right choice can be a little bewildering.
THE BANKS WANT YOU
Most people stick with just one main bank over their lifetime, but remember that the power is in your hands. You have the freedom to choose (and switch between) any bank. Play the game.
BEWARE OF THE FREEBIES
We all know there’s rarely such a thing as a free lunch. In the case of banks, freebies are used as the carrot to get you through their doors. Convert any free offer into a monetary value, but generally speaking, they aren’t worth bothering with as you’ll probably be compensating on other, longer-term perks.
GO FOR THE LARGEST OVERDRAFT
By far the most notable benefit of a student account is getting a 0% interest overdraft, which can be as much as £3,000. It’s not free money as you will have to pay it all back, but it’s the closest you’ll get to it for the time you’re a student.
CHECK THE SMALL PRINT
Be wary of the phrase “up to” and make sure that you know what you are likely to receive, or which banks are offering overdrafts that are guaranteed to all students.
BEWARE OF BANK CHARGES
Going beyond your agreed overdraft can set you back as much as £12, plus interest.
REMEMBER, YOU HAVE TO PAY IT ALL BACK
It’s really important to have the right mindset. Think of the overdraft as a safety net only.