Student Bank Account - or not?

TheGardener

Having saved hard (all of us) youngest is off to Uni in the autumn. Youngest is not keen on having the temptation or responsibility of the large overdrafts available with Student accounts and with careful budgeting of maintenance loan and savings plus continuing with weekend job, we think we can avoid using OD facilities for 3 years.

Is there a logical reason why youngest should get a student account that we are missing? (granny bought a railcard as a Christmas present so has no need of the Santander freebie)

jonesMUFCforever

According to their website Lloyds only offers £500 for the first year.
There is no need to use the facility if granted but could be a lifesaver in an emergency.

Dobbibill

The OD is interest & fee free for x amount - having it but not using it could be vital if an emergency crops up over the 3yrs.

Why not use the student account as a holding account for any student finance - funding your son's regular account weekly/monthly with a standing order like a wage. It helps to teach them to budget but keeps the lump sums away from day to day funds.

davethorp

If your youngest's financial position doesn't mean they will need the overdraft another option would be to stooze off it by putting it into one of the top savings accounts and earning some interest on it

TheGardener

Dobbibill wrote: »

The OD is interest & fee free for x amount - having it but not using it could be vital if an emergency crops up over the 3yrs.

Why not use the student account as a holding account for any student finance - funding your son's regular account weekly/monthly with a standing order like a wage. It helps to teach them to budget but keeps the lump sums away from day to day funds.

Yes - they thought they might do this - make a weekly DD into their basic (no OD facility) account and take some baby steps to budgeting weekly with a view to moving to monthly payments next year. Although youngest isn't silly with money and isn't bad at budgeting - the temptations of heading to the hole in the wall halfway though a student night on the town is one they are not completely sure they might resist :rotfl: