Helping you manage your finances while you study
Ensuring you keep your spending under control is vital while studying at university. Opening a student bank account can be one of the best ways to do this – especially if you plan on getting a part-time job during your course. Banks and building societies all offer varying degrees of flashy rates and deals – so you need to be aware of what factors contribute to a truly worthwhile current account. Read on to find out how a current account can really help you as a student – and about the other aspects of managing your finances while at university.
Student current accounts
The main reason for a current account is to help you look after your money and especially your student loan. You’re likely to have the account open for the duration of your course, too – so you must choose the account carefully. Banks do offer various incentives to open accounts, but try not to be swayed only by these factors. Make sure you look at everything the account offers – from the amount of interest-free overdraft to insurance. The biggest names won’t necessarily give the best deal, so make sure you shop as much as you can.
Things to look out for are:
- If you will be charged for going over your overdraft limit – if anything
- What the bank’s graduate account is like (especially if you plan to take a gap year following your course)
Try to open your student bank account before you move into the halls of residence – as some banks have a policy of not sending correspondence (such as cards or security details) to campus addresses.
Credit cards
You may be offered a credit card after signing up for a student account – but think carefully before deciding to use it. Interest rates can be sky-high, and some banks charge interest of around 20%. Spending £500 at this rate and repaying 2.25% per month would result in you paying off £1,100 for 14 years.
Avoid credit cards if you can – or save them for emergencies only.
Part-time jobs
Consider getting a part-time job if the thought of your £5000 loan and overdraft seems a little scary. There are plenty of jobs on campus; the Student Job Shop will be able to help. Jobs off campus (in food and retail) are often plentiful around universities, with which student unions can help.
Also find out if you can become a student ambassador. This often involves showing prospective students around the campus, and can pay well for flexible and easy work – not to mention it looks good on your CV!
Saving huge amounts as a student is unrealistic; but putting aside a small amount every month from your earnings can prove worthwhile if you ever come to need some emergency cash. Saving £20 per week from your earnings will leave you with £1,040 at the end of the year – plus interest. Enquire with your bank about the savings account that can earn you the most interest.
