Student accounts during Recession

marib_2

I'm looking around for the best student account to set up for uni - do I need to look into each banks welfare in terms of dealing with the economic crisis?

I've read the article about how Halifax is (or at least was from '07-'8) the best bank in terms of student accounts, but should I go with someone like Abbey who seem to have a more secure foothold in the economic world at the mo?



Many thanks to all who respond!:rotfl:

rb10

No, go for the account that's going to be the best for you.

For most people, this means either Halifax or Natwest (probably the two banks coping the worst at the moment, but that's no reason not to open accounts there).

The only thing is, are you starting uni in Sept 2009? If so, wait until June/July, as you won't be eligible for offers or interest free overdrafts yet.

Mike1989

There is no reason to be worried about the Halifax's security in the current market unless you are investing over 50k in that bank. So in regard to a current account it does not matter were you get the account from. As rb10 rightly said, you pick the account which is best for you. Because in all fairness, as students, we won't likely have 50k in any account. So they are all as safe as each other as far as we're concerned.

In terms of what is the best account it depends on what you want. Halifax have the potential to offer you the largest overdraft, up to 3,000. If you want a rail card because you commute, go Natwest as you get a free rail card. Abbey are a solid enough bank but their service is not exactly rated that well.

My advice, like rb10, pick the best account for your situation. Way up what you need and then pick the bank that fits. As they are all as safe as each other in the current market. The government won't and can't let any major bank fail. So your as safe in the Halifax as Abbey in terms of a current account which will have less than the 50k guarantee in it.

kelloggs36

Don't go with Abbey - their ability to deal with student accounts properly is extremely poor. My DD had no end of problems with them due to their opening the wrong account and her ending up fighting against charges applied to her account due to their errors - it took over a year to sort out. She got it sorted and then switched accounts.

Nichelette

I second Kelloggs post, I have a student account with Abbey (until I've paid the overdraft off when I'll close it) and they have been terrible. Natwest are much better in my experience.

TeamMCS

Nichelette wrote: »

I second Kelloggs post, I have a student account with Abbey (until I've paid the overdraft off when I'll close it) and they have been terrible. Natwest are much better in my experience.

Another one for how TERRIBLE abbey national are... It's turely embarrising how bad a bank they really are!

melancholly

just remember that a lot of students with halifax don't get the full overdraft.... it's worth searching this forum becuase quite a few people have had problems with that. i'd also avoid HSBC since they move the goal posts on overdrafts very frequently.

GrammarGirl

HSBC have been great in terms of overdrafts. £1,000 interest free in the first year, £1,250 in the second and £1,500 in the third. My limits were upped automatically and they also gave me an extra £100 extension when I was desperate.

I've been graduated nearly 2 years now and the limits are slowly decreasing - £1,500 interest free for the first year, then £1,000 and in July it will be £500. Fair enough I say. My only gripe is their customer service on the phone.

melancholly

GrammarGirl wrote: »

HSBC have been great in terms of overdrafts. £1,000 interest free in the first year, £1,250 in the second and £1,500 in the third. My limits were upped automatically and they also gave me an extra £100 extension when I was desperate.

I've been graduated nearly 2 years now and the limits are slowly decreasing - £1,500 interest free for the first year, then £1,000 and in July it will be £500. Fair enough I say. My only gripe is their customer service on the phone.

that's encouraging to hear - there have been a lot of posters on here complaining when HSBC withdrew their graduate overdraft without any notice, rather than the staggered reduction that they were promised....

GrammarGirl

melancholly wrote: »

that's encouraging to hear - there have been a lot of posters on here complaining when HSBC withdrew their graduate overdraft without any notice, rather than the staggered reduction that they were promised....

Yikes... I hope this isn't the kiss of death for my OD! Fingers crossed it carries on as normal...