|
A student bank account can prove very helpful for anyone entering higher education. There are plenty of accounts on offer so shopping around for deals on the high street and online is the key to finding the most suitable account. Students should also avoid being lured by incentives as it’s better to search for long term benefits on offer.
To open a student bank account, applicants need to complete an application which can be done in the bank itself or online. Proof of student status, such as a student card or a university letter, will be required before the application can be approved.
Who’s Eligible?
Student accounts are only available to full time students who are over the age of 18. In addition, applicants must be studying for a degree or equivalent qualification at university, college of further education, teacher training, nursing or agricultural college.
Student bank accounts are not available to those who are still at school or studying for their A levels (under the age of 18).
The Benefits
Student bank accounts offer a range of benefits that are exclusive to students, such as:
- Free banking - Most normal banking charges are waived for students.
- Interest-free overdrafts - Many banks recognise that money is tight for students, so they offer interest free overdrafts up to a certain amount. This amount tends to increase for each year of a student’s course.
- Additional borrowing - If a student requires more money than their current overdraft limit, they may be able to borrow at a special low interest rate.
- Debit card – Students are usually offered a Switch or Visa Delta card when opening an account. These can be used in most shops and at cash points and most importantly only allow users to spend what is in their account, unlike credit cards.
- Credit card – Students may also be offered a credit card, such as Visa or MasterCard. However, these are generally not advised for students as they incur high interest charges and could easily lead to debt problems.
- Travel facilities - Banks may offer commission free currency and/or travellers’ cheques, which could be handy for those planning on going away in between terms.
- Insurance - Many banks offer personal insurance, which covers items like clothes, books and stereos, etc
- Other incentives - Banks may offer a range of free gifts to entice students to do business with them, such as CDs or cinema vouchers. Students should consider the long term benefits of these incentives before deciding to join.
Although there is a vast range of student bank accounts on the market, with many offering similar perks, there are comparison tools available online that can help students to find an account that best suits their needs.
|
