Student Bank Accounts
If you have ever been a student, then you are probably used to being short on money. Student debt is becoming a major strain on young individuals within education, and it is extremely important to learn how to control your finances while in further education. Otherwise, you may find yourself coming out of university with more debt than you can afford to repay.
Luckily, in most circumstances, student loans are only payable back to the Student Loans Company when a postgraduates salary reaches around £19,000 per year (or £1,250 per month takehome, after tax and National Insurance has been deducted.)
Banks within the UK are extremely keen to attract student accounts, this is because although they make very little on the accounts by offering interest free overdrafts, they can often secure long term customers once the students graduate. They are also willing to offer student credit at attractive rates to encourage reckless spending. Be wary of your bank offering you attract, low limit credit cards, instead focus on managing what money you do have correctly rather than amassing a large credit card bill.
As consumers rarely change their banking providers in later years, getting students to sign up for a current account before they start earning big salaries is a no brainer. With that in mind, be sensible and don’t be drawn to a student account which offers cheap perks. Carefully study their interest rates, overdraft charges and any other additional fees which may affect you after you graduate.
As long as you don’t blow your student loan in freshers week, student loans and student bank accounts can be a fantastic way to get you through university without ammasing a large level of debt.
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