Student bank accounts are for people with a university degree. Although they are mostly similar to regular current accounts, they also have additional advantages, such as interest-free overdraft facilities. Can you open a student bank account online?
What is a student account?
Student accounts are simply bank accounts created for people with higher education. They allow you to deposit and withdraw money and offer additional benefits, such as interest-free debit.
To be accepted, you need a UCAS confirmation letter with an unconditional offer or, if your offer is conditional, A level results that meet this condition, or a letter from the university where you will attend confirming your place. As soon as you get it, you can open an account, which will give you extra time to fully use its benefits before the start of the period.
Choose the one with the largest debit
The most important factor to consider is which bank will give you the largest and longest overdraft facility 0%.
All student accounts ensure that the balance is exceeded if necessary – this means that you can withdraw more money than you actually have, i.e. borrow them. To ensure that you borrow as cheaply as possible, choose the account with the lowest interest rate available. This is due to the fact that the lower the rate, the lower your debt will be.
As long as you keep your overdraft limit, you can safely borrow money without interest – which is why you should check which bank offers the most 0% loans over the longest period of time.
Do not exceed the agreed overdraft limit without permission
If you do this, your cost will go through the roof because you will pay interest and penalties.
Although you can recover any bank fees for withdrawals, this is usually not easy. Always talk to your bank first, because a mistake on your part may lead to creditworthiness problems in the future.
How to open a student bank account?
Opening a student account is similar to opening a regular bank account; it only requires a little more identification – above all a school admission certificate. Whether you’re applying online or in person, expect to provide some or all of this information:
- Valid photo ID
- School transcription
- Academic Writing
In addition, as with any account, you will need a government issued ID (driving license, passport) and social security number.