Free Money Give Away from Student Bank Accounts
- BetterAskAdam.com
- Sep 2, 2024
- 4 min read
It’s back to school, university and college time and among the new pencil cases and stationery, which is always a pleasure, there is the choice of new bank accounts for those going into higher education.
Student bank accounts are different because they come with freebies – although you have to weigh up the pros and cons of free overdrafts or free takeaways. Overdrafts have to be paid back and the bank can demand payment at any time and they can be expensive in the long-term so they are to be used with extreme caution. Details change all the time so do check the details before you apply.
Here’s my guide.
One of the most eye catching is from Bank of Scotland with free money. They are giving away £110 if you open a Student Account with them between 1st August and 31st October. You then have to pay in £500 before the end of October 2024 and then you’ll you'll get £110.
That is just one of the benefits of a student account- so here is a quick guide to them and some details of more offers.
Student accounts are available to those in higher education. Usually you'll open one after your A-level or Scottish Highers results have come through and you have a confirmed place at university.
How To Open One:
· You'll need proof of address and identity such as a passport, birth certificate or current UK driving licence.
· You'll need your UCAS code or confirmation letter with an unconditional offer or, if your offer's conditional, A-level results that meet that condition
Overdrafts
· Like sharp scissors they can be dangerous – but also useful if used carefully. They are not like student loans and you have to pay them back regardless of whether you get a job or how much that pays.
· If you need an overdraft, you might want to find an account which offers the biggest and longest 0% overdraft available. But ask what happens to the interest charges once you have graduated.
· There is a difference between a 'guaranteed' overdraft facility and an 'up to' overdraft. If it's guaranteed, you'll definitely get the stated limit if you've been accepted for the account and as long as you ask for the maximum limit. If the account only offer an 'up to' an amount, it is up to the bank as to whether you get the maximum amount and this can depend on your credit rating. To get a good credit rating when you are young can be difficult but it can be helped if you are on the electoral register.
· You night also see accounts which offer ‘tiered’ overdraft amounts. These overdraft limits increase with each year of study. Sometimes you have to ask for the extension of the overdraft limit each year, so remember to do that if it is important to you.
· But be warned – the 0% deal does last while you are a student but I have found it very hard to discover when and whether you start paying fees after you have graduated. It’s very naughty of the banks not to make that easier to find. So be sure to ask that question – when you open the account/
· Getting a loan rather than an overdraft, might be a cheaper way forward in the long-term but obviously nothing can compete with 0% in the short-term. And be very careful about building up debt you can’t pay off.
SOME STUDENT ACCOUNTS WORTH LOOKING AT
Freebie
£110 cash
Discounts and cashback through Everyday Offers scheme
0% overdraft:
Up to £1,500 (0-6 months £500, 7-9 months £1,000 and 10 months+ £1,500) in year 1Up to £1,500 in year 2 and 3Up to £2,000 in year 4 and 6
Freebies
£100 cashJust Eat vouchers (worth £120 a year)No charges for using debit card abroad
0% overdraft:
- £1,000 in year 1
- Up to £2,000 in year 2
- Up to £3,000 in years 3+
Freebies
£100 cashA four-year Tastecard (worth £29.99 a year)
0% overdraft:
- Up to £2,000 in year 1 (1-4 months £500, 5 months+ £2,000)Up to £2,000 in year 2Up to £3,250 in year 3-5
Freebies
Free 4-year Santander 16-25 Railcard worth £100 which gets you a third off many rail tickets – though it's not valid in Northern Ireland.
0% overdraft: - £1,500 in years 1 to 3
- £1,800 in year 4
- £2,000 in year 5
BE WARNED: ASK WHEN THEN 0% DEAL ENDS AND WHEN YOU HAVE TO START PAYING INTEREST ON THE DEBT YOU HAVE BUILT UP.
A QUICK NOTE ON STUDENT LOANS WHICH ARE DIFFERENT FROM OVERDRAFTS
When do I apply for my loan?
A: You do not need a confirmed place at university to apply. You can cancel or change your application before the start of your course.
The Student Loans Company suggest students apply by 17 May to "guarantee their student finance will be in place for the start of the academic year". However, you can still apply after the first day of the academic year for your course.
The Student Loans Company, external processes all applications for students in England and Wales
Students in Scotland apply through the Students Awards Agency Scotland, external
Students from Northern Ireland apply through Student Finance Northern Ireland.
