Most banking institutions in the United Kingdom are targeting students. They have gone ahead to provide accounts that are meant to serve the students’ needs. These accounts offer a range of services including overdrafts. Each bank has different specification of the student account. There is therefore need to have knowledge of things that you need to consider before you open a student account.
Requirements for a student account;
- You must be above 18 years.
- You must be a resident of UK for a period of at least three years prior to application.
- You must be a full time student in a UK recognised higher education institution.
- You should have a letter from the institution you are studying in confirming your admission.
- You should also have a student identification card that is recognised.
After you have fulfilled the above requirements, you now start considering the available choices of a student account. Your aim should be to get the best deal. There are various tips that can assist you in getting the best student account. Some of the tips are discussed below.
Some of the banks will offer short term offers to try and win more customer. Such offers might make you miss a long term benefit in a different bank. You should there avoids short term offers which include cash rewards and consider the banks that is offering long term benefits such as a long time interest waiver.
Student over draft.
Some of the banks will offer large over drafts than others. The advantage of overdrafts is that they carry no interest. You should consider a student account that will allow high overdrafts. You should also ensure that the overdraft is guaranteed. Some banks promise the overdraft but you finish you studies without getting it.
Understand the conditions of payment.
You need to know the time that the bank expect you to repay the overdraft. Some banks will offer a longer repayment period than others. Make sure that you open a student account with the bank that will be flexible. Some of the banks switch the student account to a graduate or a current account after graduating. You need to understand all this before you agree on the terms of opening the account.
Knowing your credit worthiness.
Ensure that you discuss your credit worthiness with the bank management before opening an account with them. This will avoids the frustration of being denied an overdraft due to credit unworthiness.
Accessibility of the bank.
You should open a student account with a bank which is near or has a branch near the institution you are in. This will prove important when you want to deposit a cheque or you want to submit or collect any document to you bank.
Opening a student account.
You should visit the nearest branch of the bank you have decided to open a student account with to open an account. Some banks however allow online account application for student bank accounts. But the support documents required must be sent to the bank for confirmation