I need help picking a new bank

samhawthorn

I am new. This is my current situation:

Barclays have messed me around loads the past few years, and on Friday I decided to go and empty out my accounts with them and then have the accounts closed (thought the closing hasn't gone through yet).

I have about £1,500 (with about £2,500 to come soonish)
I currently earn £400 p/month

I'm 21, I have no idea what my credit rating is and I start uni in September.

I've read through a few pages of stuff on the website, but I'm still not sure who to go with, they all seem fairly similar!?

I need a new bank. Help?



If this is in the wrong section please let me know and I'll have it moved.

samhawthorn

Ok...any particular reason?

jambosans

Depends what you want? Customer service wise, I bank with both Lloyds TSB and Bank of Scotland, and have never had any complaints. Although First Direct (owned by HSBC), Co-Op, and Smile (owned by Co-Op) always top out in customer service satisfaction surveys. First Direct and Smile are both online banks, however I think their parent companies branch network can be used. If you're all about ethics and want a bank that doesn't fund terrorism or the hunting of baby pandas then the Co-Op is the bank for you.

In terms of student accounts, Halifax/ Bank of Scotland offer one of the largest interest free overdrafts - up to £3000 (obviously subject to credit worthiness). If lots of debt doesn't tickle your fancy then NatWest offer a free 5 year 16 to 25 Railcard with their student account. Almost all student accounts offer an interest free overdraft.

I've got a Bank of Scotland Student Account, but in retrospect, and after a good few years of liberal university thinking, I would have went with Co-Op. Good customer service, good ethics, product range (in terms of interest rates, etc) may not be the best, but you can't have everything.

97trophy

try hsbc - excellent website.

As above avoid Abbey - they are awful.

scott_lithgows

Not Abbey,Try Nationwide.

rb10

I think First Direct are quite strict with applications - so a 21 year old earning £400/month is unlikely to meet their criteria.

As you're going to uni in September, you'll want a student account then, so this probably brings it down to Halifax or Natwest. Look at their student account offers and see which one you prefer (Halifax have up to £3k interest free overdraft and good online banking, Natwest have a much lower overdraft but give you a railcard).

willo65

Natwest student account is £1250 o/d first year then stepped until graduation at £2000 but you also get railcard and other benefits

http://www.natwest.com/microsites/personal/students/index.asp

not sure about the offerings of other banks, Natwest also have branches on campus at 55 of the top universities depends where your going to be.

rb10

willo65 wrote: »

Natwest also have branches on campus at 55 of the top universities depends where your going to be.

I think this is a very weak advertising feature - how often do you really need to use a branch of a bank? And remember that although you may be living on campus, your whole life won't revolve around campus. There will be a large town or city nearby, which is almost guaranteed to have at least one branch of all the big banks.

willo65

rb10 wrote: »

I think this is a very weak advertising feature - how often do you really need to use a branch of a bank? And remember that although you may be living on campus, your whole life won't revolve around campus. There will be a large town or city nearby, which is almost guaranteed to have at least one branch of all the big banks.

True there will be one of every major bank in the nearest town etc but not having to trek to town to pay in a cheque or to ask a question etc could be useful depending on the type of customer you are.

*Paris*

I've banked with HSBC for 11 years and I've never had any problems.

The student account has up to £2000.00 interest free overdraft & no overdraft fees, it also has free travel insurance for the first 2 years.

You can apply online at www.hsbc.co.uk or in a branch.

HTH

username

It's all very well about going with a bank that has a large overdraft but what you have to consider is, are you going to be able to pay it back? Do you really want to be adding to your student debt?

Remember that the overdraft is the bank's money, and not yours, and they will want it back at any time. It is designed for short-term borrowing, not living continuously out of it. They maybe interest free, but whatever you do, do not fall into the trap of thinking that it's free money, as plenty of students seem to think!