The Perfect Student Bank Account

Most students don’t really expect to have a lot of money as they go through university. Certainly the student loan will be paid in, and then disappear remarkably quickly, but where that money sits before it gets spent isn’t always a priority. However, banks are really keen to attract students and are offering great deals such as Santander basic bank accounts.

So what type of thing should you be looking for? The first consideration has to be the interest free overdraft. Unless you’re one of those people who is lucky enough to be going to university with a fair amount of cash in reserve, the likelihood is that at some point you’re going to dip into your overdraft, it’s important to get a student account that doesn’t charge overdraft fees.

The size of the overdraft isn’t such a big deal. Most students end up living out of their overdraft for a while, so you might want one with a big limit, but then, on the other hand, at some point you’re going to have to pay that debt off. So it’s really a question of personal preference.

The second most important thing for students should be (although it isn’t always) security. If you’re moving away from home for the first time, it’s also the first time that you’re not protected by your parents insurance. When you add up the total value of what you owe, it’s almost certainly going to work out as a significant figure, so you need to make sure that those important and valuable items like phones and laptops are covered. Some banks offer free insurance with their student accounts, this coupled with an interest free overdraft should seal the deal.

After that, any interest that you earn has to be considered a bonus, as mentioned above, most students don’t have a lot of cash, and in the current economic climate, most bank accounts don’t offer fantastic interest rates. Nonetheless, all else being equal, an interest rate of any variety is probably a good reason to make a choice.

These are the essentials of student living, after that banks have different tactics and offers for attracting students. The most fundamental of considerations should always be what is going to cost you the least money (or save you the most), so any free things like insurance are a great addition. After that, additional bonuses are exactly that, additional.

Written by: jeremy