Before heading off to university, why not jazz up your finances with a student bank account? It’s like a regular bank account but tailored just for students with additional perks like an interest-free overdraft and even free money! It’s a win-win! Here’s a guide on setting up a student bank account:
What does an interest-free overdraft mean?
An overdraft is like the bank giving you extra money up (for free!) to a certain point. The difference with this with a normal bank account and a student bank account is it is interest-free for students! Usually, banks charge extra money and interest for this privilege but this doesn’t apply for students!
Why should you get a student bank account?
As well as having an interest-free overdraft, many banks offer students perks and freebies to get them to sign up. This includes free money up to ÂŁ100 or a free 3-year railcard! Remember to do your research and ask for advice to find the best bank for you before signing up! Usually, the bank you are currently with will offer student bank accounts - this is a good starting point!
What do you need?
Proof of address
- This can be a driver’s/provisional license
- A letter that is addressed to your name and has your address that’s not more than 3 months old can be used. For example, a bank statement
Proof of identity
- This includes your passport, birth certificate or driver’s/provisional license (but remember to check that if you use your driver’s/provisional license for proof of address, the bank may need a different form of documentation for proof of identity)
Proof of your VISA
- This only applies if you are an overseas student
UCAS code or a confirmation letter with an unconditional offer
- If your offer is conditional, you need your A-Level results which meet the conditions
- You can open your student bank account as soon as you receive this
Some advice…
Please only use the overdraft in case of emergencies! The rule is: DO NOT go over your AGREED overdraft limit! The overdraft will need to be paid back and crossing the line of the overdraft can increase charges as well as finding yourself stuck in a vicious cycle that’s hard to get out of. Stick to your limit and there will be no problems. Just as a heads up, after you graduate, your bank might start charging you for any overdraft you haven’t paid off. So make sure to clear it up before charges kick in!
Conclusion
Opening up a student bank account is a great start to starting your financial journey at university but remember that it is not compulsory! Find what is right for you and remember that it is important to use your money wisely!