The top student current accounts

When you’re facing the start of University and all of the new experiences that it brings, the last thing you want is to be worrying about money. There’s a lot to think about when it comes to student finance, what with maintenance grants, tuition fees, loans, accommodation costs and bills. One way you can make your money situation less stressful is to sort out a student account to organise your funds and keep things under control.

Student accounts are basically like regular current accounts, except for the extra features geared towards helping you deal with finance issues that most students won’t have had to think about before University. Of all current accounts, student accounts are the most likely to be highly accessible, so you can sort out your money over the phone, in a branch, or online. Most banks offer an interest-free overdraft so you don’t have to worry about getting into a lot of debt if you overspend. There are also student credit cards for those who would like a little extra spending money, but it’s best to be wary of this option if you’re not great at budgeting. Added incentives are also a common feature of student accounts - extras designed to draw customers in. Still, if the account is good anyway then the extras are definitely worth considering.

So how do you choose the student account that’s best for you? It’s important to think about which aspects of the account will be most important to you as a student. If you’d like the safety of a big interest-free overdraft to go into if you overspend, then Halifax currently offer the largest overdrafts for student current accounts, providing up to £2,750. However, remember that no matter how wonderful it may be to have an extra £2,750, you will have to pay it back into the account at some point. If you don’t feel you need a huge overdraft limit but want an extra perk, then current accounts offer a 5 year Young Persons Railcard worth £100 when you open an account with them.

There’s also the option of a credit card or cheap loan. Generally, student credit cards will have a limit on them so you can’t accidentally go a long way over budget, and will offer a certain amount of interest-free credit (usually 56 days). Banks like Alliance and Leicester offer cheap loans but beware it’s wise to avoid overspending, as you’ll only end up with mounting debts. When it comes to incentives; every bank seems to offer something different. These should not be the features that you base your decision on entirely, but if you’re stuck between two accounts that seem equally good, then you may find that the extra incentive is the thing that makes your decision easier. Whether you want luxury items like the 35 free music downloads offered by Lloyds TSB, or something more practical like the discounted insurance on home, car and personal possessions from NatWest, as long as you remember that this is an added bonus then make the most of it!