Choosing Student Accounts

With the cost of University taking a steep rise, students need to be even more savvy with their finances to avoid getting into more debt. According to Which4U, the average course fees will cost around £8,000 per year, causing students to rack up debts of £24,000 based on a 3 year course and this doesn't include anything else. Add on the cost of living, along with the traditional beer or 5 and you could find yourself in large amounts of debt before you have even started working. The main tool that students will rely on to manage their funds are student accounts. This type of bank account is unlike any account available to non-students, so it is important not to miss out on the deals that come with student bank accounts. Most banks offer student accounts, but many people simply stay with the bank that they are familiar with and fail to look at the competition. This can be a costly mistake, as banks are very keen to get the attention of students - seeing it as an investment as many students will go on to earn good money which is great for the bank if they remain a customer. Many student accounts come with freebies, but by far the most valuable tool (if you make use of it) is the 0% overdraft. This feature allows you to spend money you don't have, while paying no interest for the privilege. Many accounts offer overdrafts of £2,000+ which generally starts off lower then can be extended subject to your financial situation. If you don't think you will need an overdraft then there are plenty of other attractive features on offer, from student rail cards that provide students with discounts on train fairs, as well as a number of other incentives. Alternatively, you may wish to be savvy and earn some extra cash by stoozing. Before trying this make sure you know exactly what you're doing, as getting it wrong could end up costing you. The idea is to withdraw your overdraft (ensuring it is all 0%) then putting it into a high interest savings account, fixed rate bond, or better still an ISA. This will allow you to earn interest on the funds, and since you don't have to pay for borrowing them anything you make is profit. By making use of your ISA limit you can benefit from tax free interest, allowing you to earn higher returns. If you find yourself accidentally going overdrawn, you will probably be charged. The amount will depend on your bank, but some student accounts cap the amount you will be charged. Something that is worth trying is contacting your bank and explaining that it was an accident - more often that not they will cancel or refund the charge. This is unlikely to happen if you have exceeded your overdraft several times within the last few months, but there's no harm in trying. The best student accounts tend to appear later in the year before the new University year begins, so hold tight then compare accounts to find the best deals. Meanwhile, researching personal finance options such as student accounts can often be done by consumers from the comfort of their own home. That is according to Justin Modray of online resource Candid Money, who believes all individuals should take the time to weigh up their options when it comes to such decisions. Mr Modray explained that the "obvious route" of discussing these products with a financial advisor can often prove too costly for many people, while some professionals in this field may not be as independent as they claim. "For more straight-forward products such as savings accounts, credit cards and mortgages it's not too difficult to do your own research," he noted. The expert went on to state that the internet represents a "great resource" for many monetary matters. Recently, the Financial Services Consumer Panel revealed that many Britons find the process of signing up for the best personal finance options for them both stressful and unrewarding.