Choosing your student bank account can be quite a daunting decision, especially for individuals who have never before had to make crucial financial decisions. These days there are plenty of options available and the choice has never been more comprehensive. And whilst that does provide students with more options, it can make choosing which one to go for all the more complicated.
With the current academic year now well and truly underway and students across the nation even thinking about their Christmas break, the Almero Student Mansions team has put together this great guide to choosing the best student bank account. It’s never too late to change your mind or transfer your balance elsewhere, so be sure to read on for some valuable student finance tips.
What is the best student bank account?
The thing to remember about student banking, is that there isn’t a “one size fits all” approach that works for everyone. If that was the case then everyone would be with the same bank, using the very same product. As is usually the way with anything financial, there are all sorts of student bank accounts which have been designed for people with different circumstances, incomes, and needs.
It is for this reason that one should really take their time when making decisions about their student banking and remember that they are free to change their bank whenever they see fit. Below we have listed the current high street banks offering a student product, as the current options these come with, so you can start to suss out which is the best for you.
Student accounts - at a glance
Student finance tips
Now that you can see the various rates, what else should you bear in mind when choosing your student bank account?
The main thing to remember is that all of these banks want you, due to the interest they can charge once you graduate. Although you can enjoy these tempting looking overdraft whilst you are studying, these balances will then accrue serious interest when you have finished, depending on how disciplined you have been. So, don’t be scared to tell your bank manager exactly what you’re after and if it doesn’t feel right you can always go elsewhere.
Although the internet is a wonderful thing and you can find most of the information you need online, don’t be afraid of going old school and arranging some meetings with your prospective bank managers. You may well be able to refine some of the perks you receive and can really find the product that is perfect for you.
Beware of freebies
Try not to be too wowed by the freebies that many student bank accounts offer, as they can often disguise lackluster interest rates. These can sometimes be very useful, from insurance to mobile phone contracts; but just be sure to look at the actual product as well.
Negotiate a large overdraft
Although it may not sound like the best piece of student finance advice, don’t try to be frugal when it comes to your student overdraft (provided the interest rates are fair). This could be the last chance you get to negotiate this. Even if you think it is too much, just be disciplined as it could well be a long three of four years and you never know what is around the corner. As you can see from the table above, there are some decent overdrafts available and the more reputable banks do the right thing and stagger this over your course, so peruse these rates and decide what works.
Use comparison sites
As a final touch in your quest for the best student bank account, why not use some of the better comparison sites out there. After you have done your online research and had some meetings with your shortlist of banks, this could give you some nice final context and you may even find some special offers. Use these with caution but you may well find some surprising deals.
Follow the above tips and we are sure you will find the perfect student account. It may take some digging around but just remember you are free to move at any time and the banks are desperate for your custom, so you are in the driving seat. Take advantage of this and your student finance should be a walk in the park.