Need advice on openning Bank Account.

mazdaspring

I am an oversea student. I will be graduated this June and I will continue my postgraduate study in this coming october. I wanna ask for some advices about the bank account.

I now have a bank account with NATWEST (only student account). As you know the interest is extremely low on student account. Now I have about £3,500 which I have earned from part time job and pocket money from my parrents in the past. I wont be using this £3,500 for the next 3-4 years I hope. I also got scholarship from university for my postgraduate course for whole 3 years. So I will be paid for living cost in every month as well.

After graduated I will open another account. So I will have 2 accounts.
One is a saving account for my £3,500 which I wont withdraw any money out within next 3-4 years.(just to get some interests = free money without doing anything). However, I am not sure what to do with another account (The student account that I have now). I will use only this account to spend money and for the university, parrents to trannsfer money to.


What should I do ???????????

1 For my saving account, which Bank is the best, which bank gives the highest interest. Is there any other ways to save this £3,500 and gives me more interests than the bank?

2 For my student account, Should I close this account and open another student account at Halifax Bank of Scotland (as Martin wrote in his article).
or Should I close this account and open another type of account at other banks or NATWEST.

3 Or should I keep it. (After graduated my account will be changed to be graduate account. However I am not sure if they will change it back to student account after I start my postgraduate course). Which one is better between Student account and Graduate account?

Please give me some advice, Thank you

Broke_Student

Hi.

1. Take a look at the 'savings and investments' board for more knowledgeable advice on the subject of savings accounts. If you are sure you will not need the money then you might be able to get a better interest rate using a fixed term deposit account. Otherwise, generally speaking, if you want to use a high street bank then the online savings accounts will give you the best interest (you may need a current account to open these).

2. I did not think you are allowed to open new student accounts when doing a post grad qualification. They are for under grads only. Therefore I suggest you keep the one you already have for as long as they offer the interest free overdraft.The graduate account may allow you to repay the interest free overdraft over a number of years.

Also it may be useful to post your tax status as that may determine which accout is best for you.

melancholly

you can have a student account as a postgrad - i have had one with natwest for the last 4 years! i had a student account with them as an undergrad, and just went in after registration with all the paperwork and had the account changed back from a graduate one. well worth it to keep the nice large interest free overdraft!

your stipend as a postgrad will be tax free so unless you plan to earn lots extra (in my experience there really isn't time doing a phd!), then remember to get your savings account to pay you gross tax.