Many of us have a bank account, but not all of us understand the ins and outs of how they work and what we can do to get the best deals. The main category being students and young adults. Students going off to university can get some great deals on a range of bank accounts. Most banks offer perks to students, this can include things like free overdrafts of up to £2000, various discounts and freebies.
Everyone knows that university is costly so by the time students finish their studies it is likely that they are going to be in a lot of debt. The crazy tuition fees added to living expenses and maintenance all adds-up and can leave students in a lot of debt. This is what student bank accounts are supposed to help with. Of course the free overdraft is the main selling point for these banks because student rack up a lot of debt when studying and the interest-free money the banks offer to students helps to reduce the burden of debt.
It is important to remember that just because students attend university does not mean that they have to open a student account. These accounts are sometimes not suitable for everyone and sometimes students do not actually need an overdraft. If this is the case then there are many more options out there that could be better suited for students. These include current accounts, basic accounts, standard accounts and packaged accounts. Students must be aware of what they are purchasing, it is easy to be roped into paying hidden fees, but if you do think that you have been mis-sold a bank account you can contact your bank or check online ). Banks would argue that university student should get a student account because they are specifically aimed at them and can be used even after the completion of their course.
Even though once you graduate the terms of your account change, the perks and benefits tend to stay the same. Many bank accounts offer a graduate account that gives students time (usually three years) to pay off their student debt while still benefitting from the free overdraft. They don’t even have to stay with their existing bank during university or after they graduate, they are free to switch bank accounts and take their student/graduate privileges with them if they find a better deal elsewhere.
There are some important key points to remember when signing up to a student bank account. Students must remember not to exceed the overdraft limit because they can be faced with high interest fees so it is always best for them to contact their bank if they think that they will go over their overdraft limit. The best advice that any student can get is to shop around for their perfect bank account. Banks main aim is to get more customers and will try and entice people in to join them so it is important to do your research on them before you decide.
Samantha is a dog loving, baking fanatic and horror film nerd, she is passionate about sharing her suggestions and tips with a wider audience online and enjoys writing articles that reach out to the readers.