Best Student Account

For many years high street banks have been on a head to head battle with each other, promising to provide the Best Student Account. To attract people, bigger overdraft limits have been published. However a customer is not allowed to access them until they open an account in the bank. Hence overdraft size is only a part of a large battle between banks. Few banks claim that they grant overdraft limits on credit history that is surely not possible for a student. As a result, no one can give a definitive reply as to which is the best bank account. Given below are few banks that provide student banking account…

1. Halifax and Bank of Scotland: - They have the biggest limits amongst all banks but no one is certain about getting them at first go. They have the biggest advertised 0% overdraft and can take pride in the fact that they are provide the maximum interest free overdraft of up to £3,000 every year, for which after a three year course the average limit is also £3,000. The problem however is that there is an upper limit, with the previous years showing that it’s very much unlikely that you’ll be getting the full amount immediately. The money offered by the bank is no doubt huge. But you need to request for it, as you may not be assured of getting the full amount. It depends on credit score that is defined by the bank itself.

2. Barclays: - They are providing the customers 0% Overdraft of up to £2,000; provided no previous bad feedback is available with the bank. This second biggest overdraft is with Barclays Student Additions with limits of up to £2,000 from the first year onwards itself, but sadly enough again it’s not guaranteed. According to the bank, it’s based on basic credit check and the students generally need to request the bank the limit that they want. It is really worthwhile keeping this in mind; at least if you are a student. If you don’t ask you will not be getting what you want, hence it is necessary to ask the bank for your limit.

This bank hasn’t been on MSE top pick in the recent years that have passed. This is one of the reasons as to lack of feedbacks regarding the overdraft limits it gives in practice. Some other benefits from this bank are that they give you a cheap 8.9% APR extra borrowing facility of up to £1,000 along with interest-free limit. This could be one point that you may like to have a look in to. Like other banks you may have to request them to give it to you. But this is nearly as cheap as some other personal loans you can lay your hands upon. Only if you acquire them it will be of help and not otherwise. An advice would be to do some budgeting first in this regard and ensure that unauthorized borrowing costs £22 for every five days never gets further overdrawn.

3. Royal Bank of Scotland: - For the people of Scotland or people studying in Scotland this is another good news regarding overdraft. Royal Bank of Scotland is offering big overdraft and £65 rail card if you are from Scotland or are studying there. If you are a Scottish or studying in a Scottish university the bank will then offer you an overdraft of 0% of up to £2,750. This is just slightly smaller than Halifax’s, but with it you will also receive a three-year 16-25 rail card worth £65 that cuts many rail fares by a third. Also if you apply online then you are entitled to receive a 4GB USB stick as a free gift. The same thing applies for the overdraft basis. There is a likelihood that you might have to ask for an increase, but as per standard policy you should be getting £1,250 by the end of your first year, if not more. Also it pays better in-credit interest of 1.02% AER that is quite rare for a student account. Now, after going through this quick snapshot, it will be easier to choose the Best Student Account that can help every student in the long run.