Banks Belfast
Which Bank?
You may have had a bank account since the tooth fairy gave you 10p for your first milky peg, but becoming a student gives you a great opportunity to review the situation.
The banks usually change their student package every year, so if you're looking ahead to next year, details might not be out till next summer. Sadly most have now shut down the loophole whereby you could open five accounts, kit yourself out with railcard, ipod, cinema vouchers and maybe a bit of cash, then scarper from all but one of the freebie-offering accounts. They now require that you keep your custom with them exclusively and make it part of the agreement when you join up.
You may already have a bank account you are quite happy with. You may also have just happened to stash your cash throughout your teenage years with the bank that does the tippermost, toppermost account to suit your student needs. But really, what are the chances of that?
Have a scout around at what the different banks are offering. Here are a few of the things to consider:
Look out for special offers and incentives. And that’s look out’ in both senses of the phrase. Wanting your banking custom in future years (when you are hopefully raking it in), the banks have all sorts of honey traps to entice the unsuspecting student: electrical gadgets, CDs and cinema vouchers, mobile phone top-up, bunging an extra 50 quid in your account or even an ipod. Free gifts may sound good, but search out the ones with lasting benefits - some of the discounts on books or travel could end up being of greater value after a few years.
Or, like someone on the Atkins diet walking past the cake aisle at the shops, ignore all the goodies and make sure the account is one worth having. It’s not worth being duped by the offer of a cuddly Barney the Banking Bear if that means you’re stuck with an account that makes loan sharks look like kippers.
Check out which accounts have the best overdraft facilities. It's likely you'll end up in the red, but if you've got an interest-free overdraft, dipping into the red won't cost you extra. First years can get from a £1,000 overdraft at Barclays or HSBC to £3,000 at the Bank of Scotland.
While Bank of Scotland comes up trumps with its impressive overdraft, its unauthorised overdraft facility charges 24.2% interest, compared to HSBC's 8% interest. Huh? Unauthorised overdraft charges are what the banks charge students who go over their overdraft limit without applying for an extension - so if you know you're the type to keep a slack hold on your finances bear these charges in mind and opt for an account with lower unauthorised charges.
Look also at where the nearest branches in your university town are (or even on campus) €“ it’s all very well going for the bank down the road from your mum’s house, but not so good if you end up having to travel for an hour each time you want to pay in a cheque once you’re at university. Remember...