Look around before you settle with banks. It is important to ensure that they provide you with the service you need.
As an undergraduate student you’ll normally get an interest-free overdraft. For example you will not be charged when using your overdraft limit. But if you do go over this can affect your account status.
It is important that you make sure there’s a branch of the bank nearby your campus or accommodation so that it easy to access.
You must be careful with credit cards and store cards. It is very easy to open multiple accounts and get store cards that fit into your lifestyle.
Be realistic with what you can or can’t afford.
Usually once you have completed your studies this can get upgraded to a graduate account. These accounts tend to offer new rewards and incentives.
Key things to keep in mind
Some student accounts allow overdrafts of up to £3,000, interest free.
You may decide to open more than one account. For example, you can have one that covers accommodation and one spending daily for university and social related activities.
Ensure you bank safely and try not to use shared computers or tablets to access your online banking. Also think about the security software and make sure it is up to date on your computer, smartphone or tablet.
Think about the following questions when you become a graduate:
• Has your current overdraft limit increased?
• Check to see if your bank will automatically upgrade your student account to a graduate account?
Remember to check your credit rating before you apply for a graduate account and continue to budget well.