Your Finances

When choosing a bank account there are many options to consider. All banks provide a similar basic service but it is important that you identify the bank that suits your needs by doing some research. Most bank accounts include facilities such as interest free , student , and , and on campus branches dedicated to student services.

Most students will choose one of the big five banks such as Abbey National, Barclays, HSBC, Lloyds TSB and Natwest, however they all provide different options and different facilities.

In order to try and attract students, these banks will provide incentives, for e.g. free gifts or cash credit. They do this because they realise that once they have acquired your custom, it is likely they will retain your loyalty for life.

These incentives are intended to attract you to a particular bank but it is necessary for you to be aware that options such as good , low charges will benefit you more in the long term. The gifts should be seen only as a nice addition but not as the most important factor in choosing the bank itself.

Therefore, when choosing a bank, it is vital that you consider what features are important to you, and to help you the list provided below identifies some areas that you may want to consider.

Interest is paid by banks on any savings you hold periodically (depending on the account). These interest rates are represented in percentages. When opening an account to increase your savings, you should try to look for an account that offers higher interest rates. Usually these rates are low in , so you should look towards a that has higher interest rates. The only drawback to this is that there are sometimes restrictions on withdrawals and some rules of payments into the account. You can also have both a current and savings account open at the same time.

An interest free overdraft facility is offered by most student accounts. Simply, this means that no charges are incurred to any money that has been borrowed. The limit on the overdraft will vary from bank to bank, and usually they will offer up to £750 interest free in the first year of studies, increasing to around £1500 in the final year. In addition there is also some flexibility to increase the limit by prior agreement with the bank manager.

As well as the interest free overdraft limits, banks will also give a further amount depending on the bank's discretion, though it is likely you will be charged a rate of interest for this. It is important to remember that if you do go over the agreed limits, you can be charged at a very high rate. Some banks can even charge this per transaction. The need to plan your finances and remain within the agreed rates is crucial.

• - This will fulfil most of your needs as a student. Its three main functions are as a cash card, a debit card and a cheque guarantee card. With it, you can take money directly out of cash points and also pay for goods and services via . The money will be generally taken out of your account on the same day or the following one. Any that you write out will be guaranteed, up to the limit stated on the card.

• - These can be used to purchase products or services and pay for them at a later date (which is usually at the beginning or at the end of each month). You must pay a minimum amount of the balance outstanding within the time frame given (around 2 weeks), and if the full balance is not paid, you will be charged interest on the amount spent. Different credit cards have different maximum amounts and therefore limit how much you can spend each month. With each account, the rates offered and the maximum limit of the card also vary. You will need to research this before you select a credit card.

The Bank Manager or will be your point of contact whenever you require help from the bank in order to manage your finances. You should ensure that you meet him/her before you open your account.

Generally high street banks, will have a large number of branches and cash machines. Occasionally up to and in excess of 1500 branches and over 3000 cash points. Banks may also have branches on or near university campuses that will obviously make it a lot easier for you to manage your money and is therefore worthwhile considering. The downside of having a branch near you is that there is a temptation to increase the frequency of withdrawals, so be aware.

These additional services will make it much easier for you to manage your finances. Therefore, it will be of benefit to you if the bank offers these services. The advantages of are that they offer preferential saving accounts compared to local branch accounts. On-line banking offers you the opportunity to pay bills, arrange transfers and check balances on the Internet. Telephone banking permits you to regulate your account with a human contact if you are not comfortable using the , and you can check balances, arrange transfers or get basic advice.

The initial focus while choosing an account will be the services that are provided by the bank during your time in university. However, you must consider what will happen to the account after you graduate. As an example you should think about whether the bank will give you extra time to pay off any or will they expect it back immediately after graduation. Ask the right questions before you are landed with a debt you cannot repay. A useful enquiry point will be the Graduate account that most banks now provide.

The bank will offer additional services and facilities such as interest free foreign conversion, etc. Therefore it will be worthwhile for you to look into what benefits you can receive.

• Which cash-point / is the nearest to your campus?
  
• What types of accounts are available and how do they tailor to your needs?
  
• Which of these accounts gives you the best deal for your requirements?
  
• What are the charges you have to pay if you accidentally go overdrawn without prior authorisation?
  
• Do they charge when cash points other than theirs are used?
  
• What are the opening hours?
  
• Which cash point is the nearest to you?
  
• Does the local branch provide a financial advice service?
  
• Does the account provide a ?
  
• After you have graduated and have started your first job, what services can they offer you?

In order to get detailed information about choosing your bank account and the services that specific banks offer, a trip to your local banks will be needed. Initially you need to read their leaflets and for further information you should arrange to see either the bank manager or the financial advisor.

For other financial advise, you should seek your who should be able to offer you impartial advise. As an alternative, you can also ask the advise of your family and friends for recommendations.

• Student Bank Account