Student Bank Accounts

You’ve finished your exams, and after what seemed an eternity you can finally relax in the summer sun. The last thing you want to think about are finances, not many of us do, but if you’re going to university this autumn it is a good idea to consider what is available to you. Banks love students, it’s a fact, and they will offer what they can to make sure you bank with them. It’s up to you whether you wish to take advantage of the extra money and 0% overdraft.

Depending on your financial circumstances you are able to access loans to pay for your fees and grants to help with maintenance costs. However it is going to cost you a lot more than you may predict. The average cost of living if you take into account accommodation, food and socialising is approaching £8,000 (add 25% for London) a year. Even if you get a full maintenance loan and grant there is not going to be much excess money for you to spend.

Alliance & Leicester have some excellent-value products for students and those of student-age. The Premier 21 account (for customers between the ages of 16 and 20) will earn you 5% AER – fixed for 1 year – on balances up to £1,000. The bank also offers some very competitive savings accounts.

An obvious alternative would be to get a part-time job, as most socialising at university is done during weekdays there is a lot of free time at weekends and working on Saturday or Sunday could boost your income by a couple of thousand pounds.

It is almost guaranteed that you will have an amazing time at university, whether you opt for a student overdraft or not. Just remember that life doesn’t stop after university and one day you will want to put a deposit down on your own house and set up a life for yourself. Keep your debts as low as possible otherwise they could catch up with you and you may have to make allowances later on in life.