Banking: it’s not the most exciting subject to think about when you start the excitement of your university career. But it’s a subject that more students should think about. Many are going to university with accounts that don’t really work for their circumstances. Every year, the biggest banks offer special deals and perks on student accounts. Here is a quick review of four of the best student options to help you decide which is best for you.
Santander 123
Perks: For starters, you get a free student travelcard worth £100 which gives you a third off rail travel across the UK. For students who live far from home, this can represent a massive saving. It offers high interest rates for balances that maintain between £300 and £2000. They offer up to £1,5000 overdraft interest free for undergraduates and up to £2,000 for postgraduates.
Drawbacks: Overdrafts are not automatic. They will need to be formally arranged or you’ll pay regular charges. You need to put in at least £500 per term for the other perks.
Co-Op Student Account
Perks: They offer a staggered interest free overdraft facility: £1,400 for first years, £1,700 for second years and £2,000 for third year students. Their strong ethical policy means that they will not invest your resources in the arms trade, child exploitation and so on. Many choose Co-Op because of this, foregoing financial bonuses.
Drawbacks: Interest is low compared to other options. You will pay charges if you go over the agreed overdraft limit and interest will also be added on top.
Nationwide Flex Student
Perks: This is the first year the Building Society has offered a student account. They offer the best overdraft option in this list with £1,000 in the first year, £2,000 for the second and £3,000 for finalists. No fees for unauthorised overdrafts, but they do have a unique way of dealing with those who go over the overdraft limit.
Drawbacks: You need to put in at least £1,500 per year for these perks which should not be a problem for most students. Should you go over your overdraft limit, they lock the account until it is back into an authorised amount.
First Direct Current Account
Perks: This internet and telephone only bank has the best customer service rating of all the banks. They have no branches so if you are happy to work solely through the internet, this is the bank for you. They will give you £100 for switching to their account, the highest paying of all switch bonuses.
Drawbacks: Their overdraft limit is just £250. They also charge £10 per month for this account unless you can deposit a minimum £1,000 per month or maintain a £1,000 balance. This may be prohibitive for most students.