Opening a student bank account

 

To open a student bank account you normally need to be over 18, and studying on a full time degree course. Banks will have different policies on how long you need to be resident in the UK to open a student bank account. If you are unable to open one, there are bank accounts for international students available. For more information please click here. 

 

You should open a student bank account as soon as possible, it is not always necessary to wait until you have enrolled on your course. Sometimes your UCAS offer letter is enough. If you are a current student it is also possible to switch from your current bank account to a student bank account, even if it with a different bank.

 

Normally you can only open one student bank account.

 

What student bank accounts offer

 

Banks will offer tempting freebies to entice you to open an account with them. These may range from a Young Person’s Railcard, to student discount cards, or free cinema tickets. Although it is important to be aware of the incentives offered, you should not use this as your priority when choosing a student account. You will probably find that an interest free overdraft will be far more useful during your course.

 

A student bank account may offer you services that have been previously unavailable to you. These include:

 

• Interest free overdraft: This means that if you run out of money in your account but still need to withdraw money you can use your overdraft to do this, and you will not be charged until you go over the agreed limit. Using an interest free overdraft is better than using a credit card, as you will not be charged within your limit. You will need to repay this money once you have completed your degree, however, so try and keep your overdraft to a minimum if you can. You need to check with your bank about the rules for applying to use the overdraft facility.
   
• Credit Card: You can use a credit card to borrow money to purchase items, and you will then receive a statement each month to show how much you have spent. You have to pay back at least the minimum amount shown on the statement each month. Often there is interest charged if you do not repay the amount you have borrowed at the end of each month, this is normally between around 6.7% to 19%, so make sure you check how much interest is charged before you use your credit card. Some credit cards offer a 0% interest on purchases for 6 to12 months, and you can transfer your current credit card balance to another bank offering this service, but you are often charged around 2.5% to 2.9% for this. There will be a limit to how much you are allowed to borrow on your credit card; usually student bank accounts will have a limit of between £250 to £600.
  
• Internet and telephone banking: This is useful as it enables you to check your statement more regularly and try to keep spending within your budget.
  
• Specialist student managers at branches
  
• Commision free currency, and travellers cheques

 

 

During your studies

 

Some students do have problems with their finances during their studies. If you find that you have been overspending, or you have reached your overdraft limit and have no money left, or if you just want some advice on budgeting – remember you can use the Smart Money pages for guidance and tips on how to manage you money.

 

It is sometimes a good idea to speak to your bank about your money problems, to see if there’s any way they can help you and to let them be aware of you situation.

 

The Student Advisers can give advice about finance problems, and help you budget and write letters.  Your local Citizen's Advice Bureau can also help.

 

 

For more information on choosing the right student bank account you could also look at the following websites:

 

MoneySavingExpert – top student bank accounts: http://www.moneysavingexpert.com/banking/Student-bank-account

 

Moneyfacts – Student Bank Accounts:

http://www.moneyfacts.co.uk/banking/bestbuys/banking_stud_accounts.aspx

 

 

"The Smart Money initiative at the University of Westminster is part of a national project aiming to improve students' financial capability, led by the Consumer Financial Education Body (CFEB)"