There are many advantages to choosing an account which is designed to assist students, when you are in full or part-time education. When your bank or building society has all the details of your personal circumstances, they will be better able to provide you with the service that you need. If your bank is aware that you have limited cash flow, and may need to a financial cushion at times, they are more likely to offer you an account which requires no minimum balance and may include the option of a low-interest overdraft. If your circumstances change at any time, contact your account provider and ask for advice: they may offer to adapt your account to suit your needs, or advise you on how best to manage your money and avoid unneccessary debt. Student accounts frequently offer:
Gifts: Competition between financial institutions has increased the desire for student custom. Many student account providers offer incentives for choosing to bank with them, usually special offers such as an interest-free overdraft and one-off gifts. These can include rail or bus cards, cinema tickets, store vouchers, and discounts on books and clothes. Usually, it is not worth accepting a student account that does not meet your needs because you wish to receive a particular gift, but some gifts do prove valuable. Most students are eligiable for a student concession card provided by the government reducing their transport costs and entitling the holder to a percentage off public transportation as well as other Government run or managed facilities including health services, significantly cutting these costs and saving you money.
Overdrafts: An overdraft is an extension of your available funds, offered by your account provider. Usually you will be charged a fee if you withdraw money from your overdraft, and you will often have to pay interest on the amount withdrawn. However, student accounts don`t tend to offer an interest-free or reduced interest overdraft for which you will not incur charges. Although an overdraft essentially enables students to borrow money from their bank or building society, and continue making purchases or paying bills even when they have very little money. It will depend upon your credit rating and whether you are earning some sort of income on either a casual, part-time or even full time basis and the track record you have established through your account with the financial institution concerned.
Student Advisors: Many student account providers will offer customers the opportunity to discuss their finances with a student advisor. If you have difficulties managing your funds, or you feel that your account should be adapted to better suit your needs, you can discuss your situation with a trained advisor. These advisors are also available to offer tips on money management and avoiding debt before you get into trouble.
