Product Description
Student accounts are generally for youngsters going to university however some are open to college students as well. These accounts offer a form of everyday banking for students with a debit card facility in most cases. Their main factor is the interest free overdraft that they often come with and the limit tends to increase from year to year throughout the student’s course. A lot of student accounts have freebies and incentives attached to attract new users.

The Main Players
The main providers of student accounts are the large high street banks. These include NatWest, Barclays, the Co-operative Bank, HSBC and the Royal Bank of Scotland. The building societies are much more limited when it comes to this type of account although the Halifax is worth looking at as well.

Pros of Student & Young Person Accounts

• The interest free overdraft means most students can afford to live while at university and the debt isn’t payable until after graduation.
• The account facilities allow for direct debits and standing orders for bills such as rent, loan payments and utilities.
• Student accounts are often managed by a specialised team of advisors so that students can get additional financial help quickly should they need it.

Cons of Student & Young Person Accounts

• These accounts only last as long as the university course that the student is sitting so following graduation the account will revert to a regular account…and the overdraft will no longer be interest free.
• They entice students to spend more because they know the overdraft is interest free and the limit will be increased the following year.

Things to Consider when Choosing a Provider
The biggest selling point of a student bank account is the interest free overdraft. If you think this is going to be a big factor during your time at university then simply choose the bank that is offering the biggest overdraft limit. Make sure you find out the limits for each year though and not just the first year as some banks will increase their limits by larger amounts in the second and third years…and this will mean more available money in the long run.

If the overdraft facility is not that important then you might want to look at the benefits and freebies that come with the account. A lot the providers now offer incentives to open an account and these can include things like a free railcard, a better interest rate on credit balances, a credit card and car breakdown cover. Some banks also allow you to keep your interest free overdraft for up to 12 months after you graduate and this is worth looking into as well. You should also look at the customer support network and how easy it is to talk to someone when you need them.

BUYability Summary
The basic facilities of student accounts are generally very similar from bank to bank and so the deciding factor will probably be the size of the interest free overdraft. It is worth looking at the other benefits of the accounts though and the freebies that are on offer so that you get the very best from the bank account overall.