What are: Student bank accounts
Most banks and building societies have bank accounts that are especially for students. They usually come with lots of benefits that bank accounts for non-students don’t have. Most of the time you’ll have to make sure your maintenance loan is paid into your student bank account, and sometimes you’ll have to prove to the bank that you are a student.
What are the benefits?
Things like cheaper coach travel, rail travel and gift vouchers are available, but the benefits that each bank and building society offers are different, so it is worth doing some research before you open your account.
What are overdrafts?
Overdrafts are amounts of money that you borrow from the bank through your account. Because the bank is lending money, they usually charge a fee or interest on any overdraft lending. However, many student accounts will give you a small overdraft for free whilst you study. This can be useful for emergencies, especially at the end of term when your maintenance loan is running short. However overdrafts should always be treated with caution, you are still borrowing money from the bank. Check the fees, and how long your overdraft will last – with some you’ll have to start paying fees if you are still using your overdraft when you leave university.