Student Banking 101
BUT before you rush head long in to signing up for a student account based on the freebies provided, breathe... take a moment &... Choose Wisely!
Banks offer different interest free overdraft limits & it's always worth reading the small print to see if what they say they are offering is really what you'll get. The most important thing is to find the bank offering the biggest 0% interest overdraft as you're likely to end up needing to use it - even if you are great at budgeting.
Making the time to compare accounts now will save you trouble, money & time later on. One resource well worth checking out to ensure you receive the absolute best deal is the Money Saving Expert's guide to the latest & best student bank account deals available for the new academic year. This comprehensive guide includes advice on what to look out for, and compares the best deals available right now.
But before you even think about opening a bank account check out our top tips below:
1. Be wary of freebies
Banks are competitive creatures by nature, and they'll typically try to lure students into current accounts with offers of free stuff. This can range from railcards to discount vouchers to laptops (yes, really). But don't be swayed by the swagger. The MOST IMPORTANT thing you should look for in a student bank account is the biggest and longest agreed 0% interest overdraft you can possibly get.*
(*unless you live in Scotland and plan to commute back home from Swansea every few weeks, in which case the railcard may be a very decent investment).
2. What you'll need to open an account
Typically banks will ask for:
3. Overdraft 101
So you know you need the biggest overdraft but you're still in the dark about what it is and how to manage it? Let us explain...
An overdraft enables you to access money even when there is no available credit in your account. This is the bank's money so you must be cautious and use your overdraft wisely! You will have an interest free overdraft BUT should you exceed the agreed limit you will pay huge charges & rates of interest. Our advice to you is to avoid going over your agreed overdraft limit at all costs!
You'll need to keep on top of your finances as overdrafts left unattended can be increasingly difficult to pay off. Worse still, if you fail to keep on top of things altogether and exceed your limit you'll be hit big time by charges, fees and astronomical interest rates that will compound your problems dramatically. You should never, EVER exceed your overdraft limit and if you think this might be a possibility you should discuss this with your bank as soon as possible to see whether they could extend your overdraft or temporarily cap the charges until you can afford to pay them off.
Communication is key if you think you're in danger of exceeding your overdraft limit. Get in touch with your bank - pop in to your local branch or give them a ring - but ensure you do this before exceeding your limit. Many banks will appreciate your honesty, and in some cases overdue charges may be waived entirely.
Making the time to compare accounts now will save you trouble, money & time later on. One resource well worth checking out to ensure you receive the absolute best deal is the Money Saving Expert's guide to the latest & best student bank account deals available for the new academic year. This comprehensive guide includes advice on what to look out for, and compares the best deals available right now.
But before you even think about opening a bank account check out our top tips below:
1. Be wary of freebies
Banks are competitive creatures by nature, and they'll typically try to lure students into current accounts with offers of free stuff. This can range from railcards to discount vouchers to laptops (yes, really). But don't be swayed by the swagger. The MOST IMPORTANT thing you should look for in a student bank account is the biggest and longest agreed 0% interest overdraft you can possibly get.*
(*unless you live in Scotland and plan to commute back home from Swansea every few weeks, in which case the railcard may be a very decent investment).
2. What you'll need to open an account
Typically banks will ask for:
- Your UCAS confirmation, in the form of a letter or ID code
- Identification including proof of address & passport/birth certificate/full drivers license & photo card
- A letter from the university that confirms your place on a course. You can obtain this from Academic Registry, which is based in the Abbey Building on Singleton Campus.
3. Overdraft 101
So you know you need the biggest overdraft but you're still in the dark about what it is and how to manage it? Let us explain...
An overdraft enables you to access money even when there is no available credit in your account. This is the bank's money so you must be cautious and use your overdraft wisely! You will have an interest free overdraft BUT should you exceed the agreed limit you will pay huge charges & rates of interest. Our advice to you is to avoid going over your agreed overdraft limit at all costs!
You'll need to keep on top of your finances as overdrafts left unattended can be increasingly difficult to pay off. Worse still, if you fail to keep on top of things altogether and exceed your limit you'll be hit big time by charges, fees and astronomical interest rates that will compound your problems dramatically. You should never, EVER exceed your overdraft limit and if you think this might be a possibility you should discuss this with your bank as soon as possible to see whether they could extend your overdraft or temporarily cap the charges until you can afford to pay them off.
Communication is key if you think you're in danger of exceeding your overdraft limit. Get in touch with your bank - pop in to your local branch or give them a ring - but ensure you do this before exceeding your limit. Many banks will appreciate your honesty, and in some cases overdue charges may be waived entirely.
Test Your Banking Smarts
Now that you're a banking brain box, test your knowledge of financial terms with our Student Banking 101 quiz below. Simply type your answers into the boxes provided, and when you're done click 'Next' (below) to gain some savvy banking tips:
Now that you're a banking brain box, test your knowledge of financial terms with our Student Banking 101 quiz below. Simply type your answers into the boxes provided, and when you're done click 'Next' (below) to gain some savvy banking tips: