'Banking offers for new students'
September 3, 2010 at 12:12 pm
Many young people will be heading off to university next month and, with the array of freebies on offer from the various banks, it can be tricky deciding which to use for your student account.
We give the low-down here on how to sort out which account is right for you and how to avoid financial meltdown.
- Look beyond the free cinema tickets, discount on AA membership and free SIM cards and work out which bank will allow you to borrow money at the cheapest rate. It is a sad fact of student life that borrowing will be almost inevitable for the majority. For instance, Halifax and Barclays are your best bet if you are likely to have to borrow up to £2,000 a year.
- If you are unlikely to have to use your overdraft and plan on using the train for trips home then Nat West’s offer of a free five-year Young Person’s railcard is worth having.
- If you are one of the lucky few with cash to spare, make sure it is not left languishing in your current account but earning interest for you.
- Overdrafts are all very well and can be a cheap way of making ends meet so long as you do not exceed your authorised limit. Once you go over that limit, however, you risk being stung by interest rates as high as 30% (Equivalent Annual Rate).
- Unless you are very disciplined, forget about having a credit card. Alternatively, keep it for use only in dire emergencies. Unless you are able to pay off the balance at the end of each month this is an expensive luxury which will eat into your budget.
- It can be useful opting for a bank which has a branch on campus. If you run into financial trouble there should be a student advisor available to help you sort out the mess.
- Set yourself a budget and stick to it. It may mean having to turn down the odd invitation to the pub and learning to cook, but ultimately you will be glad you did.
- Make sure you get your application in for your Tuition Fee loan and Maintenance Loan if you have not already done so.
Sir,
The NatWest offer for the student Railcard is only available to first year students! Many youngsters, like my son, do not have a bank account and the bank will probably miss out on a good potential customer who finished his first year with more money than he started with!
Iain Martin