Student Account Help

celticfcz

I am a 17 year old student starting university in September and have a few questions about student accounts.

Basically I was wondering if it is compulsory for you to have one and do people sign up for the incentives and interest free overdraft - is this the reason for them? Also someone told me that certain banks don't allow you to open up a student account with them until you are 18, I was wondering if this is true.

I currently have a current account with a bank but have been told to choose a student account with another bank would this mean me having to cancel my current account with my bank?

Sorry if my questions sound daft was just wondering if any fellow MSE'rs had any advice.

Thanks

MoneySavingStudent_2

i dont think it would mean canceling your current account.
And i dont think you HAVE to have one. I think there suppose to be easy but i just check the HSBC student one and its appauling the interest rate is 0.10% and i get 6.1% with my yorkshire building society freedom account.

I am also 17 (18 on friday!!!) and going to uni in september and i dont have a student account.

Lavendyr

You do not have to have a student account, though you should have some sort of current account so that the SLC can pay your loan directly into your account.

Some banks' student accounts require that you only have one student account, but I think most would let you have a student account and a current account. This varies from bank to bank though, so you would need to check the T&Cs of each student account.

Some banks may require you to be 18 to open up a student account, as they may give you a debit card (Visa or Maestro) and an overdraft as standard, and normally banks will not extend credit to under-18s. However you may be able to get a student account open even if you are under 18, just without the credit.

Most people go for student accounts because of the interest-free overdraft, which can be very helpful if you only receive income three times a year (the loan), as it allows you to be a bit more flexible with your cashflow. The freebies can be great additional benefits.