Opening Student Bank Accounts

kkid

I just tried to convert my standard HSBC account to a student account and took my conditional offer letters with me but got turned away because apparently HSBC only accepts unconditional offer letters. The MSE student account guide says that conditional letters are usually accepted, is this true or a typo then?

kkid

Also, instead of opening another thread for a similar subject:

Do student accounts give interest (Or decent interest)?
If not, is it better to simply open a student account so that I have the overdraft facility on hand if I ever need it in an emergency (I plan to stay in-credit) but use standard current accounts which have better interest as my main account for day-to-day banking?

ryan92

kkid wrote: »

I just tried to convert my standard HSBC account to a student account and took my conditional offer letters with me but got turned away because apparently HSBC only accepts unconditional offer letters. The MSE student account guide says that conditional letters are usually accepted, is this true or a typo then?

The way I would look at the conditional offer letter would be that in order to get accepted onto the course you would need to get specific grades ; in that case, there is no guarantee you'll become a student. Whereas an Unconditional is an almost guarantee you'll be a student. I could be wrong though, but I'd imagine that is the way banks would look at things.


To answer your second question, Student accounts normally need to be used as your main account, with your loan/bursary etc being paid into that account. I don't know how it would work but transferring it into another account if you so wish (ie, use another account as your main account, but have the money go into the student account. Having never done that, I'm not sure what the official stance on that would be)

SuperHan

When I opened my account, granted it was over 5 years ago, but an unconditional letter was necessary. It may be best to hang on until after results day to open the account.

With regards to interest, historically student accounts don't pay interest. However, there is a requirement for student loan payments to be made in to your student account quarterly.

My advice would be to empty the max overdraft into a savings account. Earn interest, but still use your student account as the main income/expenditure account. If you are short on funds, move from the savings account back into the student current.

kkid

ryan92 wrote: »

The way I would look at the conditional offer letter would be that in order to get accepted onto the course you would need to get specific grades ; in that case, there is no guarantee you'll become a student. Whereas an Unconditional is an almost guarantee you'll be a student. I could be wrong though, but I'd imagine that is the way banks would look at things.

I would have thought this too, was just going off martin's article which says that conditional are accepted too

Maybe he made a little mistake.

Herbalus

kkid wrote: »

I would have thought this too, was just going off martin's article which says that conditional are accepted too

Maybe he made a little mistake.

It says 'usually' a conditional or unconditional letter is acceptable. Depends which bank you go to.