You know you’re ‘adulting’ when you have to decide who to set up your student bank account with. Easy access to money and finding a bank which offers the best student incentives is pretty important, so we’ve outlined some of our best advice to help you out.
The large banks see students as customers who, if not happy, will always stay with their student bank because it’s easy. 0% overdrafts and freebies are the way they tend to tempt undergraduates but these goodies don’t always lead to the best deal for you. Do your research just as you would when choosing utility companies. It’s definitely worth the time and effort.
Overdrafts are important, you will need one and you don’t want to get charged for it. Make sure your 0% deal is on as big an amount as possible, some banks offer up to £3,000 as an overdraft facility. Be aware that there may be a credit check before you are accepted however. The bank will want to assess how much of a good customer you are.
Shopping online
Don’t go over your overdraft limit though. If you extend beyond your limit by using your student broadband deals to shop online, the charges are high and it is a financial trap that is difficult to get out of.
Your student income will be limited so you’ll need to get into the habit of budgeting carefully to make it through your studies. Getting a part time job may help but don’t be sucked into working more hours than are necessary – especially at short notice and at exam time!
When looking at potential student bank accounts, the proximity of your branch and ATMs is worth considering but in reality banking apps are now super useful for all types of transactions and bank customers can use pretty much any cash machine. Banking cheques and paying physical cash into your account are pretty much the only reasons why you would need to go into a branch. Assess how often this is likely to happen and remember every big bank has at least one branch in every town or city centre.
The quality of a bank’s online banking and their apps is well worth researching. It makes life so much easier when your utilities service provider can be paid on your phone while waiting for your next lecture.
Don’t ignore the freebies promised but don’t allow them to sway you towards an inferior account. Does the value of the gift make up for any differences in the overdraft offer? This is an important issue and you’ll need to weigh up the pros and cons of any bank account and what they are offering to attract you as a new customer.
Student railcards are always a good deal to think about. They cost just under £100 at the moment and can save a frequent traveller hundreds of pounds over the four years of its validity. This means it is easier visiting mum and dad or visiting school friends who are other universities for a crazy and cheap weekend away.
Loyal student customers
Look at the other types of accounts, loans and credit cards that the bank in question provides for future reference. Potentially you will be one of the loyal student customers who the banking bosses dream of.
The know that after you leave university and enter the world of work you may be needing a loan to help you through or buy a car; then you’ll be needing a mortgage and you may even need a credit card. Having an established relationship with your bank may pay dividends in the future as a valued customer.
Swapping bank accounts can be a faff (cynically we think this is a purposeful complication) so it usually takes a large amount of dissatisfaction for customers to move to a different bank. Sometimes it really is worth the effort to switch student bank accounts and don’t feel you are tied to a particular bank and have to remain with them. Their customer service levels and product offerings are all important considerations and if you can get a better deal elsewhere then go for it.
Are the bank’s interest rates good? What incentives for saving can you see? Are mortgages a product they provide? These aspects of banking may seem far in the future but at least read the blurb to familiarise yourself with life beyond your student loan.
And remember that to help deal with utilities – arranging and paying them – the team at Glide can help.