{AF template=round_quotes} If you can count your money, you don’t have a billion dollars. J. P. Getty. {/AF}
Specially designed for the cash-strapped student, student bank accounts provide a number of facilities to with the management of money. 
As well as the ability to pay money in and out and the issuance of a debit card, student accounts frequently have attractive add-ons such as a fee free overdraft facility to help cover those times when money is really short.
An overdraft is like a loan from the bank. When you have spent all of your own money, the bank can give you a little bit extra for emergencies. You will not get charged for borrowing this money, but you will need to pay it back to them.
The banks make a special effort to get you on board, and many of these facilities are unavailable in “normal” bank accounts (or you have to pay for them). The banks know that if they can get your custom, the chances are you will stay with them for many years beyond the end of your course. It is not all free though; if you go beyond the overdraft limit for instance, the bank will levy some very heavy charges to help you remember not to do it again! Up to £30 for each transaction as well as an interest fee.
The benefits of student accounts are not available to most adults and so to open one you will need confirmation of your university place, usually your UCAS confirmation letter. Opening a bank account can take a few weeks, so get down to the bank with your UCAS letter and some photo ID soon as you receive your offer letter.
With many banks fishing your business, it pays to well informed as to what you should be looking for before committing your cash to one. Here are five keys to getting a great deal:
1. Get what you can overdraft-wise
You will almost certainly spend more money than you have at times throughout your course for whatever reason, so make sure any money you borrow from your overdraft is charged at 0%. Go for the largest amount available to you and don’t get caught by the ‘up to £xxx’ tagline – Make sure you know exactly how much the bank is willing to offer.
2. Stay within your overdraft
As we have already said, the penalty for going beyond your overdraft limit is very stiff. Once the bank starts adding charges to the money you owe them, it very quickly becomes a vicious downward spiral of increasing debt. Never, ever go over that magic limit
3. Applying for a bank account instigates a credit check
The bank will always check your credit history out before offering you an account. Usually this is not a problem, but mature students with a poor credit history could encounter some problems. Occasionally new account holders miss out because they have no borrowing history. If this happens to you, visit a bank branch for further assistance.
4. Nearest branch does not automatically mean best deal
Often having a branch or ATM in close proximity to your halls of residence can sway your choice towards that particular bank. However using this criterion for picking an account can rule out some of the best deals. Like most things in life, shopping around often turns up better deals.
5. Finish your course, finish your account
In the same way students get special account deals, so too do new graduates. When you complete your course find the best paying graduate account, or you face having your account converted into a standard one, losing the benefits to which you have become accustomed.
Here are the best student bank accounts:
The Co-operative Student Account
Top of the chart is the Co-Op who’s guaranteed 0% overdraft is the largest available. Account holders benefit from a £1400 limit in their first year of study, 1700 in the second and £2000 in the third. You will need £300 to open the account in the first instance, and in the event you need more beyond the agreed overdraft, the bank will lend at 9.9% if you speak to them about it first.
The Natwest/RBS Student Account
In second place, Natwest’s offering has a lower 0% overdraft (year one up to £1000, year two £1250 and year three £1500). You need to pay in £750 every six months (student loan payments or grants should cover this) to keep the account going. Unauthorised borrowing fees are very steep, so keep to the limits. Natwest account. RBS Account.
HSBC advertise a massive £3000 0% overdraft, but chances are you will be offered considerably less. Initially you will get just £500 with the ability to request future increases. The HSBC account also pays a relatively healthy 2% interest on any of your own money you keep in the account. Again, unauthorised borrowing charges will hurt, costing 24.2% against the value plus additional fees.
So now you know what you are looking for, it’s time to go shopping. Check out what the banks have to offer and pick the one that best suits your needs. And if you find something we have missed, why not let us know in the student forum?
{AF template=round_quotes} There is a certain Buddhist calm from having money in the bank. Anthony Robbins. {/AF}