Family Finance: Student
Bank Accounts
Banks love students - they're the high-earners of tomorrow. But it's
important for students to be discriminating when choosing an account.
Location,
location, location
Never open a student account until you get to campus! The bank with convenient
local branches in your hometown may be a three-mile trek from halls of
residence.
Speed
and convenience
Look at the availability of cash machines on campus. Which ones charge?
How easy is it to speak to the student advisor? How quickly can an overdraft
be arranged? Does the bank offer online banking?
Overdrafts
Most students will need an overdraft facility. How much is the free overdraft
offered? What will it cost if the limit is exceeded? Will the overdraft
limit increase every year? Does the bank charge for notification letters
or bouncing cheques?
Credit
cards
Most banks are keen to offer students credit cards, but think carefully
before accepting. Take into account the interest payable and the penalty
fees for missed payments. It's also worth considering your undergraduate's
ability to resist temptation when funds are running low.
Added extras
All banks offer freebies, but how worthwhile
are they? In most cases, a student railcard will be more valuable than
CD vouchers. And although three years may seem like a long time, it's
worth checking out the postgraduation banking arrangements. Starting work
can be expensive too .
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