There are four main types of accounts. The current account, is typical for day to day banking, and can be used to withdraw, deposit, write cheques, and use your debit card.
The basic bank account is similar to the current account in that it is also a day to day account. Most of the time, however, this account cannot be overdrawn for more than ten pounds if at all.
Savings accounts are great for doing just what they are named for…saving. Whether you are saving for a rainy day, or your next big purchase, these accounts normally draw a greater interest rate, giving you the best bang for your buck.
Sharia-compliant accounts are accounts that are similar to current accounts, but are structured and comply with Islamic laws.
Don’t be afraid to ask questions. After all, it is your money, and it is the bank attendant’s job to serve you. The more informed you are, the better off you will be in the long run. Some questions to get you started are: How many branches are in the area?; What are the hours of operation?; What services are available online and when?; What are the fees associated with different services?; What services are available to you as a student?; Does the institution offer overdraft protection? There are other questions that you may want to ask them depending on some of the answers that you will get in response to these, but this should get you started. Once you know what the individual bank has to offer, you can make an informed decision. See, now you are becoming money wise!
Once you’ve decided which type of account you want to open, you normally will be asked to fill out an application form, provide proof of identity, and most likely pay some money into your account.
The bank will notify you if it plans to run a check on you with a credit reference agency get your credit score, and see how suitable you are to have a bank account.
Student accounts are by far the best value for your money! Banks will do everything but hang on the monkey bars to get your business. Why? Well, of course, as with any other service related business, they know that people are creatures of habit. Establishing a relationship with students gives them a greater chance of reaping the benefits of your continued patronage long after your educational goals are met. A good bit of banks offer students some rather trendy freebies as well as 0% overdraft fees. Both of which will come in handy while you are studying.
There are some major big important rules of thumb that you NEED to follow. It is pretty simple once you know what to look for.
The two top competitors in the running for my pick for the best student accounts this year are Natwest/RBS and The Co-Operative Student account!
The co-operative Bank Student account has a whopping £1400 first year overdraft with 0% interest for the first year compared to Natwest/Rbs’s £1000.
Even though the Co-operative Student account offers a larger overdraft limit, Natwest is more appealing to me because of the iPhone, iPad, and blackberry mobile apps, as well as the discount card they offer. You can get some great discounts on some major brands such as New Look, Game.co.uk and 3 mobile to name a few.