Student Finance

The way you bank as a student can make a difference when it comes to budgeting. Check out these 10 tips to choose your student bank account like a pro.

1. Know What You Want Your Account to Do

There are various types of student bank accounts out there, so make sure you know what you want from it before you start shopping around.

If you’re on a tight budget, an account with overdraft could be ideal. If you never go out of your budget, go for an account that gives you interest on the savings.

2. Go For the Largest Possible Overdraft

Overdrafts may come in handy on many occasions during the uni year. Even if you never need more money, it’s nice to know that you can borrow at zero interest if you have to.

3. Know the Difference Between “Up To” and “Guaranteed”

Some banks may guarantee an overdraft “up to” a certain amount. However, you’ll only get this amount if you meet certain conditions and probably only in your final year.

But if the amount is guaranteed, you can get as much as you’d expect.

4. Know Your Credit Rating

Before applying for a student account, it is essential to check your credit score and find out what’s your rating.

This is important to make sure your overdraft application won’t get rejected due to a mistake in your credit report.

If you have a low score, see what you can do to improve it before applying for the bank account.

5. Find Out the Repayment Conditions

Having access to cash whenever you need it is nice, but make sure you know what are the repayment conditions.

Or you might have to pay hefty late payment fees on your 0% arranged overdraft.

6. Work Out Your Budget

Another important thing is to know your budget before applying for a bank account.

Never use the overdraft if you’re not 100% sure you can pay in time.

7. Always Repay Your Overdraft In Time

We can’t emphasize it enough.

Make sure you always repay your overdraft in time; otherwise, the fees might add up quickly, and it will also have a negative impact on your credit score.

8. Beware of Freebies

Many banks attract students with freebies, such as free meals, cashback rewards, and a host of exclusive deals.

However, you should always choose a larger zero-interest overdraft than deals and rewards you might never use.

9. Be Smart, Not Loyal

Don’t choose a bank just because you or your parents already have an account with them.

Check the market and see who can give you the best possible deal. If that means switching bank, then so be it.

10. Get More Than One Bank Account

While you can only have one student bank account at a time, nothing stops you from getting another bank account.

You can use one to store your money and transfer just a bit onto the other for daily expenditures.

That’s a safer way to keeping your budget under control during the uni years.

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