Student Bank Accounts Explained
The importance of choosing the right bank account with which to manage money entering and exiting your possession cannot be underestimated, particularly during a period in which fees have risen sharply and the cost of attending university has drastically increased.
To help, here are student bank accounts explained.
Overdraft
One of the most important things to look for in student accounts is whether or not they offer an interest free overdraft and how large it is. As most banks accept the fact that taking on students is generally an investment in the future and that, at this stage, most of them are likely to spend more time in debt than credit, a fairly large interest free overdraft is a common feature.
Many banks also utilise a clever policy of slowly extending the overdraft limit over the duration of the course meaning that the limit will start low in the first year but gradually grow until you finish. This prevents entire overdrafts being drained immediately and lowers the bank’s exposure to risk.
Ethical
University is usually a period in people’s lives when they begin to develop strong ethical and political ideas about the way the world works. Unfortunately, many banks ignore this fact and continue in unethical investments and business practices against the wishes of their customers. With this in mind, many students opt for an account that reflects their ethics and invests in ways that are morally justifiable to their customers, such as The Co-operative Bank.
Internet banking
Being able to access money at any time or place is now an important factor in which banks people decide to go with. This is particularly true of younger customers who have grown up in a world in which everything is accessible easily and immediately. Internet banking technology goes a long way to making managing your money that more simple, removing obstacles to proper money handling and putting extra power in the hands of customers.
Freebies
Many accounts offer freebies to customers in an effort to lure in undecided shoppers. However, these free gifts should not be the deciding factor when looking at different accounts and should only come into play if there is no difference between any of the above factors. Think carefully about what you want from an account and don’t let small gifts and freebies make the decision for you.
Category: Banking
