Posts Tagged ‘Interest Free Overdraft’

Student bank accounts overdraft

Student bank accounts overdraft is the most vital thing that a student needs to take care of. If this is not your prime concern, then dear friend there will be high chances that you end up building debts after your postgraduate course. Finding an entry to one of the best colleges to pursue higher education is a tough work. But finding the right bank that could help you manage your funds well is tougher than that.

After the recent economic downturn, the banking sector suffered huge losses. This has led the banks to increase their interest rates, lower down the extreme privileges in order to cut down costs. The big names in the industry reported either loss in their financial quarter, or a drop in their profit earnings. This is the present scenario with the banks in almost all countries. Although people are suggesting that the conditions are changing on the positive node, still it is advisable to know all the details related to a bank before opening any account with them.

If you are currently going for higher education and are thinking of opening a student bank account, then you must consider the overdraft facility with utmost priority. Your future depends on the decision that you take at present. If you are lured by the exciting offers of latest iPods or mp4 players, then you are in grave danger. Don’t get carried away by such offers, as they are meant to appease the young clients. These can also be covers to hide the high interest rates, which the banks intend to charge you in the long run. Banks try to attract the students more, because students are new to the banking world. Also they can be easily turned into their long term clients. Switching is generally not preferred by the budding investors. Hence, most importantly check the overdraft facility of the bank, before opening a student account.

Generally, the banks provide interest free overdraft facility to its student account holders. However this privilege is limited to a certain amount only. It however varies from bank to bank. The general range is anywhere between the range of 2000 pounds to 3000 pounds. Try to research on the maximum limits provided by the banks. After all, if you manage to get a better Student bank accounts overdraft facility, then you will be able to save yourself from ending up in high debts. This is a fact in current scenario. Many postgraduate students forget the importance of the overdraft and when they receive low amount on high interest, they end up in taking more money.

Another important factor that you need to keep in mind is that you need to repay your debt after you pass out your college. The more you withdraw, the more you are raising your own burden. This realization will also help you in assessing your requirement. You must withdraw only that amount, that you will actually require, and not the one permitted to you. In this way, you can tread the path of saving funds. Otherwise, as soon as you start your professional life, you will be paying your college debts for a few years. Many banks allow you an interest free overdraft of 500 bucks, as soon as you open an account with them. Then this limit is raised, as per your need. The interest charged by different banks after the allowed limit varies and is generally around 7 to 7.5%.

You need to be alert while selecting the correct bank for your student account. You need to check the minute details about the plan you are opting to assure that there are no hidden clause. If required, you can ask for the assistance of professionals, who are specially appointed by the banks to help the students in making their decision. You should also try to have this account in the branch nearest to your convenient area, so that you need not spend much time for the petty banking issues. Leading banks like NatWest bank, the Royal bank of Scotland are gaining popularity because of their 0% interest overdraft schemes and cordial services. They don’t cheat their young customers and in a way build their relationship for a longer term. At the end of the day, if you take the right decision, only you will be benefitted. This will help you in keeping financial troubles away from yourself.

HSBC Student Bank Accounts

Almost every bank on the earth provides student banking facility. HSBC Student Bank Accounts are no different in this regard. The student banking facilities they provide have a number of good reasons to attract someone for opening a student account. They are there to help students to make the most of their money. This has been constant aim of their organization. It offers student a flexible banking account that will give them the support that they need to enjoy their time as a student. It also allows the student with access to their money whenever they need. They are known to provide service round the clock. But that is something that is provided by almost all banks. You may wonder why you should opt for HSBC student account.

The benefits that they are providing the students may differ from country to country but generally they provide the following facilities to the students:

● Banking: They are providing interest free overdraft of up to £2,000, with no overdraft fees and overdraft limit alerts at the banks cash machine. They are also paying 2% AER Variable Credit interest on the first £1000 that will be there in the student bank account during his first year at university.

● Traveling and Holidays: They are providing two years free world wide travel insurance along with the facility of accessing cash wherever the student may be. They also offer the facility to get local currency at over a million cash machines worldwide.

• Managing money in account: Managing money has never been much easier before. Along with 24 hours access to one’s account, the bank is also providing a free SIM card in select circle that comes with £5 preloaded credit and free calls to HSBC telephonic banking. Now you can manage your money on the move, whenever needed. Mobile banking is also possible straight from one’s mobile phone.

Confused about what to do? They also have In-Branch Student Advisor who is there to help you in case you need help and suggestions. You can ask them anything that would resolve your doubts.

What about discounts? The bank provides great discounts at their different associated outlets located at different parts of the country. If some one is planning to travel overseas, then he can receive a 25% discount off Lonely Planet travel guides with an option to choose from over 500 titles that covers every corner of the planet. This offer is only redeemable through online shopping at lonely planet. Other benefits are from CDWOW. One can get a chart CDs from £7.49. The international students can apply for their HSBC Passports. They are providing banking for students from the age of seventeen so that one may avoid the hassles of applying for a student loan.

There are also additional benefits for applying while one is seventeen. Once one is 18+ he will be entitled to have the additional features namely:-

● Unlimited access to your account.

● Access to your cash wherever you are – get local currency at over a million cash machines worldwide

● Mobile Banking straight from your mobile phone.

● Mobile top-ups at HSBC cash machines

● Talking Money student micro site.

● Online budgeting calculator

● In-branch Student Advisors.

Another option for those who already have an HSBC account or those who are going to have a new one is that they can go green.  This is to say that they can avoid unnecessary paper in their everyday banking. This also means there would be no paper statements, all statements to be delivered electronically via internet banking. There would be no more letters from the bank. All the transactions will be via a phone call or email service. There wouldn’t be check book payments for one’s current account and also no paper marketing as well.

Eligibility criteria for opening an HSBC Student Banks Accounts: -

There are two most general criteria for opening an account. First is that one has to be more than 17 and the other is that the student should not hold any student accounts elsewhere. Also one should have applied for a two years full time course in a recognized university or a part time with Disability Student Allowance. But before everything, one should always study the terms and conditions to do so from an HSBC branch.