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Students urged to select accounts with care

Students urged to select accounts with care

Category: Banking

Updated: 10/09/2009
First Published: 10/09/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

For students soon to be heading off to university, it will be worth their while taking the time to find the most suitable student account for their needs.

With many likely to find themselves fully responsible for their finances for the first time, plus the expectation of eventually leaving higher education with significant debts, any penny or pound that can be saved or earned will prove invaluable.

Student Accounts come in all shapes and sizes and choosing the right one could help to alleviate some of the financial pressures.

"As most students spend their university life living in their overdraft, it is worth finding an account that offers a good level interest free," explained Michelle Slade, spokesperson for Moneyfacts.co.uk. "Inevitably, many will require more than this limit, so it is also important to check the authorised overdraft that will be payable on any additional borrowing."

She added that tiered accounts are also worth bearing in mind for those with limited confidence in their ability to control their spending. The level of interest-free borrowing increases each year and the highest level is only available in the fourth or fifth years.

While the various types of account should ensure the needs of most students can be adequately met, catching the eye of many will be the incentives available for finally committing to opening one.

"These should be a perk and not the reason for selecting the account," warned Ms Slade. "While discounts offers and cinema tickets may seem tempting, you may end up paying for them twice over with a higher overdraft rate."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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