Do I Need A Student Account?

matt4504

Is there any sense in me trying to go through uni with just a basic account and not a student one? I don't wanna get in anymore debt that I need or is a student account pretty much 100% needed?

Matt

C_Ronaldo

The question is do you think you could get through without the student loan, you could apply for one and only use the loan when neccesary

The_One_Who

The only real advantage a student account has over a normal current account is the interest free overdraft, so if you don't think you need that then a normal account would be fine.

runciblespoon

Plus there are the freebies offered by banks, like cash or a 5 year railcard.

Also don't forget that a student account with a small overdraft or credit card can help improve your credit rating, if you want to get a mortgage or similar some time in the future. You can always withdraw some of the overdraft and put it in a high interest savings account. I can see you might be worried, though, if you think managing debt will be a problem for you (watch Martin's video on the student account page about good debt and bad debt).

If your basic account doesn't offer one, you might need a chequebook for things like paying rent, society memberships or other bills. Not all universities are very high-tech as far as billing is concerned.

mummytofour

Im sticking with my basic bank account as I dont want an OD.

tinkerbel

Its the cheapest loan you'll ever get!! Take the overdraft and earn some money in an instant access high rate savings account to get some money for uni!

lena22

tinkerbel wrote: »

Its the cheapest loan you'll ever get!! Take the overdraft and earn some money in an instant access high rate savings account to get some money for uni!

agreed!! i've done this with as much as i reckoned i could afford, nice to feel i am actually earning some money.

i'd definitely say you should take out a student account, you never know when you might need that extra pool of cash. having said that though i know people who've got carried away with having so much money at their disposal, crashed right through their limit and been hit with massive charges, so it is something to be approached with caution:o

mizzy2

Ive posted this on another thread as well. Im currently a 3rd year student.
i really recommend the natwest student account. I have been using my railcard about every few months but as its free it still saves me money, they also post it to you every july so you dont even have to renew it. I also have an interest free overdraft which is so useful even though I could have managed without it. They are also very helpful in branch. You just have to have you loan paid into it and use your account at least once every 3 months, I usually transfer money into it or just do my food shop using the debit card. I also got a free webcam for applying online which was useful for talking to my parents on skype (for free)when I was away.

Idiophreak

lena22 wrote: »

i'd definitely say you should take out a student account, you never know when you might need that extra pool of cash.

I think Lena's hit the nail on the head here - it's worth having "just in case", even if you don't fancy making money off the OD. Consider the student account will give you a 1-2k "emergency" fund for the next 3 years - and will probably then reduce for the next 3 - so you get 6 years of emergency, interest freee, cash which you wouldn't otherwise have...