STUDENT CURRENT ACCOUNT
Thanks to our simple current account comparison service, comparing current accounts with Money Expert is both quick and free and we ll find you the best accounts available for you. Rates can vary drastically with different accounts. Often, if your chosen account comes with extra perks, these will come at the expense of better rates. If maximising the interest you earn is important to you, then make that clear when you run a comparison and we can make sure we show you the right accounts.
A current account is the basic kind of bank account that most of us have. Current accounts tend to come with relatively low interest rates when compared to savings accounts but come with all of the functionality that makes them perfect for your everyday banking needs such as online banking services, a debit card and, often, access to some kind of overdraft facility. As with any other kind of account, there are various different types of current account on the market designed with various different purposes in mind.
Interest rates can vary wildly for different current accounts but as a general rule, they will always be lower than the rates you could expect from a savings account. There is often a catch though. Some of the highest interest current accounts will only pay out interest for one year, for example. Many current accounts will also have an upper limit placed on the balance on which they will pay interest, or will scale down the interest rate as the balance increases. Almost all current accounts nowadays come with online functionality, allowing you to view your statement, make payments and arrange direct debits on the internet.
While you may benefit from using certain types of current account to store your savings, say one that offers cash back when you maintain a high balance, the chances are that you are going to be better off by keeping them in a specifically designed savings account or ISA. This is because the interest rates that you will enjoy on dedicated savings accounts and ISAs will be much higher. With ISAs in particular, you can earn interest that is tax free, making them particularly worthy investment.
However, if you do choose to pay a monthly fee, you can open up a premium or packaged current account that will reward you with certain benefits or perks. Packaged current accounts, also known as premium current accounts, are those that charge the holder a fee in return for various different added extras. Exactly what benefits you can enjoy will vary from account to account but typical extras include free railcards; mobile phone insurance or Netflix subscriptions.
If, for any reason, you are unhappy with your existing current account or if you simply feel like you could be getting a better service from a different bank, then you are entitled to switch. Switching current accounts is a very straightforward process, especially since the introduction of the seven day switching guarantee which came about as a result of legislation introduced in order to improve competition in the current account market. The first thing you should do if you want to switch is pick a new account and inform your existing current account provider of your decision to move.
Next, you need to fill in two short forms: A Current Account Switch Agreement form; this one opens up the new account b. A Current Account Closure Instruction form; this one closes the existing account. The final step is to choose your switching date. Once this is all set up, within seven days you can start using your brand new current account. All direct debits or standing orders will be transferred straight over to your new account.
Thankfully, when you switch, you will get to benefit from a 13 month payment protection period, during which your previous bank is legally obliged to send to your new account any payments that mistakenly arrive in your old one. There are a few different types of current account available that reward the account holder with cash back in various ways. Some will pay you cash back at a percentage of money you spend on the associated debit card.
Some will do the same but with bill payments or direct debits. Others will pay a small lump sum when you switch, and then will continue to pay out a small amount either monthly or annually based on how much money you keep in the account at any one time. Most current accounts will come with the option of using an overdraft facility. In some circumstances, as is often the case with student accounts for example, you will be able to enjoy an interest free overdraft, but generally you will have to pay.
The interest charged on your overdrawn balance will be expressed as an APR, or annual percentage rate. You should be careful to distinguish between authorised and unauthorised overdrafts. An authorised overdraft is one that has been arranged with the bank, and you will pay interest on the overdrawn balance at the agreed rate.
When you arrange an overdraft, you will have a limit set upon it. If you exceed this limit, then your overdraft is no longer authorised, and you will find yourself facing hefty charges. If you are studying at university or indeed in any kind of higher education or for any kind of degree equivalent qualification, then you will qualify to open up a specialised student bank account.
Student accounts work in exactly the same way as conventional current accounts but their main selling point is, for many, the interest free overdraft facility that they tend to come with. Whether this increase happens automatically or whether you have to go in branch to arrange it will depend on the bank. Student accounts often also come with various benefits and freebies from mp3 players to student railcards.
Exactly which benefits, if any, you receive will depend on the bank so you should compare a few different student accounts before you settle on one in order to work out which one you could make the most of. Your student account will remain active once you leave university and will often be automatically converted into a graduate account. Generally, this means that you can keep your interest free overdraft, but different banks have quite different policies on this matter.
There is no age limit on current accounts; you can have one at any age. Basic bank accounts are restricted current accounts designed specifically for those with bad credit ratings who have trouble opening up certain better current accounts. In some extreme cases, those with particularly bad credit ratings may even find themselves turned down for a basic bank account. There are a range of specially designed bad credit accounts available that will come with less restrictive features, but will charge a monthly fee for their use.
No credit checks will be conducted if you want to open a bad credit account. Until recently it was common for comprehensive policies to provide you the legal minimum of third-party cover when you were driving a vehicle not listed on your policy, such as one borrowed from a friend or a hired car. And many drivers are still convinced they can simply hop behind the wheel of another car. In fact, insurers are now placing strict limits on this so-called driving-other-cars DOC benefit, with some eliminating it entirely for drivers under 25 and for those with certain occupations.
If you find that you consistently keep a rather high balance in your current account, then you should make sure that your account is one with a high interest rate, and if not you should switch to one that is. Alternatively, you could consider a cash back current account that pays out a small amount each month or each year if you maintain a high enough balance. Yes, you can open up a joint current account with a partner or friend, or multiple friends.
Joint accounts are great for married couples to share finances, or for groups of friends living together to have one account to deal with group expenses such as utility bills or television license fees. You should also be aware that you will most likely face foreign transaction fees for both withdrawing cash and making payments on your card while you are abroad. For this reason, it is generally a better idea to try and pay for most things in cash wherever possible, or to get hold of a specifically designed foreign transaction cash card, that you can load with sterling that you can then spend abroad.
These cards will often still charge you for their use, but will charge significantly less than a conventional debit card. Show me affiliated products first. See Deal. Nationwide Building Society - FlexPlus. TSB - Under 19s Account. Santander - Select Current Account. Santander - Private Current Account. Lloyds Bank - Club Lloyds. Santander - Current Account.
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Lauren, 10 months ago
When looking after your money, a bank account, especially a dedicated student account, is something you ll need. Almost every bank has some form of offer for new students wishing to open a bank account when they first start university. The offers are not as great as they used to be so we have a comparison chart below for the best student accounts with links to the banks and what they have for you. It may be all too easy just to go for the best offer or discounts available from each institution. The banks know this because it s likely you ll stay with them for the rest of your life as it s hard to switch to another lender which it isn t.
There s plenty on offer this year but don t be seduced by freebies! Don t be enticed by freebies without thinking about what s important first.
Within those first few weeks students often have to shell out for accommodation and tuition for the year, new books for their course, laptops, membership fees for clubs and societies on top of everything else, says Anthony Warrington, director of accounts at Halifax. It is easy to be persuaded by the freebies banks use to entice new students to open their accounts, but it is best to shop around and make sure you really know what you are signing up for. Make sure you get an interest-free overdraft, and you don t go beyond it as the interest banks charge you if you do can be as high as 24 per cent. Although it seems a long way off, it s also important to check how soon after graduation you will have to start paying interest on your overdraft. Most banks give you a year to pay it off but it s important to check.
Best student bank accounts (and the worst for charges)
Looking for a student bank account? As the first term of university approaches, it s easy to put thoughts of your finances to the back of your mind. Your choice of lender could affect your financial situation significantly, so read our guide to student banking to help you choose the best one for you. The main difference between a student bank account and a standard current account is the interest-free overdraft. To open an account, you will need proof of your home and term time address, and some sort of identification such as a passport, driving licence or birth certificate, as well as your UCAS letter. You may also need some proof of income, such as a statement of your financial arrangements or a payslip.
The Ultimate Postgraduate Student Funding Guide
Which is the best student bank account in the UK? Compare what each bank is offering with this comprehensive table. If you are heading to university in the UK this autumn, you will likely need to set up a student bank account. Even if you already have a bank account, it is still worth setting up a student account as you may be able to receive a few free perks. The table below compares the different student bank accounts offered by major UK banks so that you can pick the one that works for you. Student finance help and advice How to receive funding as a disadvantaged student Top five apps for managing student finance Students: Choose between one of three offers from either an Amazon Prime Student membership, National Express Coach card or tastecard. More info: As shown in the table above, a few banks offer perks such as free travel cards or cashback at various retailers.
Student chequing accounts
Some articles on the blog contain affiliate links, which provide a small commission to help fund the blog. Read more here. Since seven-day switching was introduced in the banks have been offering free cash, high interest and other extras to get you to move to them. Here are the best current deals. In Natwest offered a switching bonus on three occasions, and it returned for a month in January Is it any good?
A quicker way to get a student account
Begin your application online. You will need to visit a branch once your application is successful to provide staff with the following: An arranged overdraft is a type of borrowing facility, it lets you borrow money through your bank account. Typically used for: See the Student Current Account arranged overdraft fees for more information. Take a look at our glossary to help understand some of the common terms used when talking about overdrafts. Also make sure you let us know your new address if you already hold any account with us.
A free railcard or a £2, overdraft? How to pick the best student account
Also, you may not get the maximum overdraft advertised, as your individual limit will be based on your credit score. Some banks do guarantee to give you this upper limit, so always check whether the overdraft limit on offer with the student bank account is guaranteed or only up to . Don t be tempted to exceed your overdraft limit without permission. Convenience does also play a part, with many students signing up to banks that have branches or cash points on campus - but with internet and mobile banking now so prevalent, there s arguably no need to do so. Not everyone will actually use their overdraft, and if you re working regularly you may find yourself able to save some money. Some other student bank accounts pay interest, but generally on very small balances so you won t earn much. We ve ranked them based on a combination of any credit interest rate, free overdraft limit and incentives offered, but please bear in mind that these may not be the most important factors for you. Nationwide FlexStudent Account.
Students are being lured into a debt trap by one of Britain s biggest banks, Money Mail can reveal. That means young adults suddenly face hefty charges on up to half the debt they accrued while studying.
Picking a student bank account can be really complicated. One of the first and most important things to note about student accounts is that overdrafts are NOT free money. They are loans that you will have to pay back eventually. Click here to read more in-depth information and a break down of what each bank offers. An overdraft is a lump sum of money that you can borrow through your bank. Overdrafts are typically used for: It s a convenient way of accessing extra money when you need it quickly. Eventually, you have to pay an overdraft back, as it is borrowed money from your bank. Normally you would have to pay back the amount you borrowed plus interest. However, some banks will take advantage of your spending, and will charge you regardless of the amount. If you exceed your overdraft, some bank accounts will prevent you from using your account at all until you are back within the agreed limit.
By Kate Palmer. School leavers heading to university, with results day behind them, can now focus on picking the best current account. University fairs will be awash with banks offering generous interest-free overdrafts and other perks, but banks are already advertising their student-only deals. The overdrafts that banks advertise are maximum amounts that usually aren t available to first years. Freebies may also be tied to using the account in a certain way, such as by paying in a minimum amount. The financial sting for students leaving university - and how a graduate account can help. Which banks offer the best bribes to join? Cheapest universities for insurance:
Thanks to our simple current account comparison service, comparing current accounts with Money Expert is both quick and free and we ll find you the best accounts available for you. Rates can vary drastically with different accounts. Often, if your chosen account comes with extra perks, these will come at the expense of better rates. If maximising the interest you earn is important to you, then make that clear when you run a comparison and we can make sure we show you the right accounts. A current account is the basic kind of bank account that most of us have. Current accounts tend to come with relatively low interest rates when compared to savings accounts but come with all of the functionality that makes them perfect for your everyday banking needs such as online banking services, a debit card and, often, access to some kind of overdraft facility. As with any other kind of account, there are various different types of current account on the market designed with various different purposes in mind. Interest rates can vary wildly for different current accounts but as a general rule, they will always be lower than the rates you could expect from a savings account. There is often a catch though. Some of the highest interest current accounts will only pay out interest for one year, for example. Many current accounts will also have an upper limit placed on the balance on which they will pay interest, or will scale down the interest rate as the balance increases. Almost all current accounts nowadays come with online functionality, allowing you to view your statement, make payments and arrange direct debits on the internet. While you may benefit from using certain types of current account to store your savings, say one that offers cash back when you maintain a high balance, the chances are that you are going to be better off by keeping them in a specifically designed savings account or ISA. This is because the interest rates that you will enjoy on dedicated savings accounts and ISAs will be much higher. With ISAs in particular, you can earn interest that is tax free, making them particularly worthy investment.VIDEO ON THEME: Halifax - Managing Your Accounts