Advice on Picking the Best Student Current Accounts

| April 26, 2010 | 0 Comments

Finances are tight for most at university or college, but thankfully there is a fairly competitive market in terms of the student accounts on offer in the high street.  These accounts offer preferential features over normal current accounts that can hopefully alleviate at least some of the financial pressure.  Here are a few pointers as to what you should be looking for in student current accounts.

The interest free overdraft facility is probably the most important feature of student current accounts.  Many of the banks providing student accounts try to entice new customers with freebie give-aways, and even cash bribes to entice your business, but over time the value of the freebie will usually pale into comparison with the money saved by not having to pay interest to borrow money.

It is important to note that the interest free overdraft facility will only remain interest free if you stay within the prescribed limit; pretty much all of the banks will hit you hard with punitive rates of interest and penalty charges if you enter the realm of the unauthorised overdraft.  Communication is key; if you can see that you might be approaching and exceeding your overdraft limit, make sure that you talk to your bank about this as soon as possible.  Ignoring the problem can lead to spiralling charges and  a credit rating problem that can last for years.

This means that you will be best served by looking for the bank that offers the largest interest free overdraft over the longest period of time.  Use the internet to research your options, checking out the websites of both the big banks like Santander, and also the money advice websites when you are comparing current accounts.

As accountancy students, you should be in a better position than most when it comes to managing money, but the next piece of advice is too important to be omitted through the assumption that you are already in the know: never borrow more than you have to.  Even interest free borrowing has to be paid back at some point, and the current competitive job market means that it may take a while to secure employment after graduation : try to leave yourself a little room to breathe, financially speaking.

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