Student Bank Accounts

Student Bank accounts differ from regular current accounts because they usually have certain fees waivered, so that you do not get charged for going overdrawn or for requesting statements, etc. This is to encourage you to continue banking with them once you have graduated.

It can be a good idea to look around at the offers being made by various banks as all student bank accounts come with different terms and conditions. Ideally, you want to set up an account which will benefit you the most in the long term. So try and resist the cash incentives which most banks offer for merely setting up an account. Banks who may not offer cash incentives to join but give you better long-term facilities, such as a bigger overdraft are a much better proposition.

It is also a good idea to check the banking facilities that your campus contains. In recent years the majority of cashpoint charges have ceased but it's still advisable to check whether your bank will charge you for using certain cashpoints, otherwise you might find yourself paying just to take money out.

Research has also shown that if you take out a student loan with the same bank, it is more likely to be at a lower interest rate.

Your student bank account will cease to exist once you have graduated, simply because you will no longer be a student. Therefore, it is possible to set up a graduate account with a rival bank but research has shown that the majority of people tend to stay with the same bank. It simply a case of convenience as the student account will change automatically to a graduate account. It may also be difficult to leave a bank at this stage due to the debt you're likely to have accumulated over the duration of your course.

For a more extensive array of loan offers alongside mortgage offers, take a look at Loans UK for all your loan needs.