With the cost of University taking a steep rise, students need to be even more savvy with their finances to avoid getting into more debt.
The main tool that students will rely on to manage their funds are student accounts. This type of bank accounts is unlike any account available to non-students, so it is important not to miss out on the deals that come with student bank accounts.
Most banks offer student accounts, but many people simply stay with the bank that they are familiar with and fail to look at the competition. This can be a costly mistake, as banks are very keen to get the attention of students – seeing it as an investment as many students will go on to earn good money which is great for the bank if they remain a customer.
Many student bank accounts come with freebies, but by far the most valuable tool (if you make use of it) is the 0% overdraft. This feature allows you to spend money you don’t have, while paying no interest for the privilege. Many accounts offer overdrafts of £2,000+ which generally starts off lower then can be extended subject to your financial situation.
If you don’t think you will need an overdraft then there are plenty of other attractive features on offer, from student rail cards that provide students with discounts on train fairs, as well as a number of other incentives.
Alternatively, you may wish to be savvy and earn some extra cash by stoozing. Before trying this make sure you know exactly what you’re doing, as getting it wrong could end up costing you. The idea is to withdraw your overdraft (ensuring it is all 0%) then putting it into a high interest savings account , fixed rate bond,.or better still an ISA.
This will allow you to earn interest on the funds, and since you don’t have to pay for borrowing them anything you make is profit. By making use of your ISA limit you can benefit from tax free interest, allowing you to earn higher returns.
The best student accounts tend to appear later in the year before the new University year begins, so hold tight then compare accounts to find the best deals.