A student has many needs throughout their 4 years of study. It is a whole new life experience outside of the bounds of their normal lives at home. It’s like all of a sudden you have been kicked from the nest without wings and are on your own. Each day something costs money and not having your basic needs met can be a real nuisance. Books, food, clothes, drinks, study supplies and recreational needs come up on a daily or weekly basis. If you are a student, then you have probably asked yourself “ What do I need to open a student bank account?” This article will get you on the right path to getting your first adult bank account and being able to independently manage your own life. That’s the goal of most young adults. No one wants to stay in the nest under Mom forever.
- 1 Perks For Students
- 2 How to open a student bank account
- 3 Be Smart With Your Limits
- 4 Accounts For Students
- 5 What do you need to open a student bank account?
- 6 HSBC Benefits For Opening a Student Bank Account With Them
- 7 Current Account With Santander
- 8 Student Current Account With NatWest
- 9 Halifax Bank
- 10 Lloyds Bank
- 11 Bank of Scotland Student Account
- 12 First Trust Bank
- 13 The O Word
- 14 Nothing Good Lasts Forever
- 15 Another Cool Reward
- 16 Free Stuff
- 17 What Do I Need to Get A Student Bank Account That Pays Well?
- 18 Tiered Limits
- 19 When it’s Over
- 20 Banking Issues You Can Run Into
Perks For Students
Banks like to get student clients because most stick to the bank that they used while in college. They are gaining a long-term customers in this way. Do some research to find the best student bank account 2016 in your area. They have in general the best deals as well. Some things that are offered are;
- Deals on overdrafts. Some have up to a few thousand in overdrafts before you are charged a fee.
- Discounts on music
- Electronic media
- Frequent flyer miles
- 1% on remaining balance up to $1000
- Simply Rewards cash rebates
How to open a student bank account
- This article will show you how to open a student bank account that will be a good fit for you. A problem a lot of students encounter is getting a negative bank balance here and there. Money can be tight with the multiple expenses incurred while away at school. Banks know this and realize that being kind now pays off later when these students have careers from their college degrees. They will be able to invest more than other sectors of the population. Some banks even offer interest-free overdrafts in the range of $3,000.
- This isn’t usually offered to lower classman.
- It starts at a lower rate and goes up by the time you are a junior if it’s a 4 year degree.
- Longer degrees take longer to get up to the max amount.
- Your credit score may also impact the limits you get as well.
- Some banks have a guaranteed higher limit regardless of your score.
- Always check with the bank to see what you qualify for.
Easy to access is a big factor in choosing the best student banks. Being able to bank on campus is a big draw. Having your bank’s branch on campus is a huge convenience. That is a big part of why someone would pick a certain bank in college.
Be Smart With Your Limits
You have to pay back all of the money that you overdraw. It is an adult responsibility that the bank is expecting you to be responsible about. You will be expected to pay it all back or suffer serious damage to your credit. If you do you overdraw without permission you can be charged up $35 per transaction.
Accounts For Students
Students are usually put into a high pay bracket directly after college, so banks in the recent past have decided to attract the student population. They count on them not switching banks once they graduate. It’s how they can offer such fabulous deals. This means that students have a lot of choices when it comes to picking a bank. The incentives are usually in one of these areas, Free stuff, in credit interest and free overdrafts. This means there’s a surprising amount of choice open to students.
What do you need to open a student bank account?
Go to your choice of bank branch and show your student ID(must be current) and proof of residency. Different banks have various requirements. This article will give you some of the premier banks below offering the best deals below.
HSBC Benefits For Opening a Student Bank Account With Them
HSBC the world wide super bank has gotten into the big business of student banking. If you are a student in England, you can get 1.75% the first year up to $1000 on your savings account. They offer a guaranteed $500 Up to $3,000 for overdrafts depending on credit and class rank. The coolest incentives are the gifts from Amazon. They offer a $60 gift card and one year of Prime membership. It’s probably one of the best student bank accounts 2016.
Current Account With Santander
Santander Bank has a great package on student 123 Student Current Accounts in the UK. They have deals with current or savings accounts with incredible interest rates.
- If you have over £100 you get the1% interest rate
- You double to 2% when you hit above £200
- 3% when you have over £300 up to £2,000
- You can ride the rail with quite a hefty discount of ⅓ for the duration of your schooling when you get online banking and put in over $750 in 180 days.
Student Current Account With NatWest
- Huge overdraft protection of up to £2,000 after first semester
- It must be your main current account and requires doing 3 debit purchases every 30 days. You also need to put in £750 every 6 months.
- They have the similar travel deal as Santander except it’s with National Express Coach. It offers a third off travel for your college career as well. They ask you to sign up for paperless services to qualify.
- Offers Reward Balance rewards
- 0.1%savings account interest rate
- Up to £3,000 overdraft coverage
- Overdrafts over £3,000 get 7.2%
- Cashback Extras program with up to 15% in shopping
- Everyday Offers from the Cashback plan
- High $1500 year one overdraft protection
- If you go over the $1500 it is 8.21% and a six dollar usage fee
- Get a card that gets you three years of savings on many stores.
- Cashback Rewards
- It’s On Us subscription which is like a lottery of sorts. You can get up to $500 back on something you paid for.
Bank of Scotland Student Account
- Save the change membership. The difference in change in what you purchase with your debit card can be put into savings.
- Register for Save the Change. Free banking on everyday accounts
- Barclays Blue Rewards and SmartSpend rewards programs
- Apple Pay and a debit card that you can personalize
- Contactless Mobile.
First Trust Bank
- Offers a deal with Commission-free currency exchange
- Lower student loan rates
- Overdraft buffer of up to $20 that doesn’t go towards your limits.
The O Word
Students love overdraft coverage because it is close to being a free loan without the stress of high interest. It’s a major factor in why a student picks a bank. It’s a great safety net if not abused and used responsibly. If you can’t handle the high limits then you shouldn’t learn how to open a student bank account until you fully comprehend how important paying bills back is to your future. Reading over the disclosures in the small print is essential to understanding what you are getting yourself into. Watch for the “up to” statements. It is worded as a possibility but not a guarantee of service. If you are a good customer, a lot of banks have overdrafts that get bigger as you go through semesters.
Nothing Good Lasts Forever
Once you graduate, the student benefits end and you will have a regular account with overdrafts up to $35 if you don’t balance your checkbook. Your overdrafts will then come due as well and payment is expected.
Another Cool Reward
Staying in credit is a new reward that is being used to get new students to apply for bank accounts. They pay interest hard on how much is in your account.
The free incentives offered in 2016 by banks that cater to students are the best they have ever been. Amazon rewards of gift cards and Prime memberships will save you a lot of money if you use them on a regular basis. Railcard discounts are also incredibly useful as students like to travel frequently. They are rewards that are pleasing to the eye but when worked out over 4 years, a good overdraft program is much better.
What Do I Need to Get A Student Bank Account That Pays Well?
O% overdrafts is what you need to get to do the best financially. The safety by of added security can free you up to study more. It needs to be a flexible account with payback terms you can handle after school. Remember your student loan will be coming in as well and you don’t want to have to pay extremely high interest rates for all of these programs you use while in school. All of the banks mentioned here had the charge free overdrafts but you want to look deeper into the limits. They are much cheaper if there is interest free overdrafts that means paying back only what you borrowed with no added fees.
If you are asking yourself “what do I need to open a student bank account?” You are not alone. The thing you need to look for is something called tiered overdraft limits. This will spread out your money that you get so you can make it last while you are in school for emergencies. It is in a way like an allowance. It breaks it down into smaller sections so you can’t spend your entire allotment of overdraws in one shot. It is great if you have trouble setting a budget and sticking to it. You can’t borrow it all at once but you won’t be out of money. Banks know the “college student” better than you think!
When it’s Over
College bank accounts can’t unfortunately go on with those terms forever. When the student walks away with his diploma, he also walks away from his student banking benefits and into an adult bank account. The bank gives you some time and sets you up with graduate terms to pay them back. They understand it takes time to pay it back and usually give you three years to pay it without any fees. You are not required by anyone to stay with your current bank, however it is why they gave you the incredible deal to begin with. They are counting on your success in the business world to provide them with a beneficial customer for the remainder of your working career. You are under no legal obligation to stay.
Banking Issues You Can Run Into
If you want to avoid any negative consequences to the student banking deals you have don’t go past what you are allowed to draw. You are already allowed to take money that you don’t have, don’t get greedy and end up owing hundreds in bank fees. This is how they get money from you as well. You have to exercise self control and if you can, your overdraft loans are free!