Why students face difficult choices when selecting a bank account to suit them

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, has some tips…

1. Convenience doesn’t always mean the best choice

If a bank or building society branch is on campus, it can be easy to pick them as its convenient.

But Springall says: “It’s essential students take time to compare the different offers out there, which suit their needs over their years of study.”

Some people may want the in-person support available at a bank branch, but otherwise students can download an app or use online banking to keep on top of their spending or access helpful tips and guides from their student account provider, says Springall.

2. Consider the size of the interest-free overdrafts on offer

While going into the red is something to be taken seriously, and debts will always need to be paid back at some point, Springall says interest-free overdrafts can be a “lifeline” for students.

However, she cautions: “Students must be sure to pay it back once they finish their education.”

Springall highlights NatWest, HSBC UK and Nationwide Building Society as offering particularly generous overdrafts tariffs. NatWest has an interest-free overdraft of up to £3,250 from the third year of study, for example.

3. Save on transport

Springall highlights a free railcard offer from Santander, adding: “The savings on train travel could be significant for those who want to visit their family or friends.”

4. Consider ‘free’ cash

“Up-front free cash of £100 is on offer from Nationwide Building Society and NatWest, but both have other perks to consider as part of the package,” Springall adds. “Santander is now putting on a prize draw where 20 students could win a big sum of cash to pay off an equivalent of three years of tuition fees.”

Bear in mind that terms and conditions will apply.

5. Maximise discounts

Socialising and eating out can put a strain on students’ budgets, but some accounts could help to ease things a little.

NatWest and its sister bank RBS are offering a free tastecard, Nationwide Building Society is offering Just Eat vouchers worth £120, and HSBC UK has discounts and offers on dining experiences, says Springall.

6. Budget wisely

Springall says: “There are many ways for students to keep on top of their finances, such as with online or mobile banking and by using budgeting apps.”

7. Make micro-savings

Money may be tight during your student years, but any saving habits you can form now will pay off in the longer term.

8. Finally, consider life after university

“Graduates should never assume the new default account offered by their current provider will be the best for them, so its wise to compare other bank accounts,” says Springall.