{"id":1515,"date":"2022-04-01T10:55:02","date_gmt":"2022-04-01T10:55:02","guid":{"rendered":"https:\/\/www.dayoutwiththekids.co.uk/hub\/?p=1515"},"modified":"2023-02-06T14:30:09","modified_gmt":"2023-02-06T14:30:09","slug":"best-savings-accounts-for-students","status":"publish","type":"post","link":"https:\/\/www.dayoutwiththekids.co.uk/hub\/parenting\/best-savings-accounts-for-students","title":{"rendered":"Best Savings Accounts for Students"},"content":{"rendered":"
[vc_row][vc_column][vc_column_text]Want to open a regular savings account for your child? <\/span>Or should I say<\/span><\/i>, the soon-to-be student? It can be pretty daunting when it comes to banking, and the thought of your child managing their finances on their own can be pretty terrifying too! BUT you don’t need to panic when you can open one of the best savings accounts for students<\/strong>.<\/span><\/p>\n

Student savings accounts have so many great and unique benefits that adult accounts do not have which you will find out in this blog! From 0% overdrafts,\u00a0 top tips, FAQs & cherry-picking the best bank account benefits, find all your student bank account answers here…<\/span>[\/vc_column_text][vc_empty_space height=”5px”]\t

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What is a Student Bank Account?<\/h2>\n\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t[vc_column_text]Let’s start at the top. What even is a student bank account<\/strong> & what makes it so unique?<\/span><\/p>\n

Student accounts are bank accounts made for those in higher education<\/strong>. They let you pay money in and out, and they have easy access which makes it both an instant-access savings account and instant access account.<\/span><\/p>\n

The student account works the same as a current account, the only difference is the bonus of the interest-free overdraft<\/strong>. So, whether you want to deposit some pocket money into your kid’s account or your kids have their own income from a part-time job (while at university), they can deposit and take out money whenever they wish.<\/span><\/p>\n

Typically, you will open your student bank account once your A-level or Scottish Highers results have come through and you have a confirmed place at university.<\/span>[\/vc_column_text][vc_empty_space height=”5px”]\t

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Let's Talk About Student Overdrafts...<\/h2>\n\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t[vc_column_text]Being a university student can be expensive with housing, university books & resources, funding nights out and of course the dreaded food shop! Overdrafts are useful & utilised by all students when living away from home. Believe it or not, student savings accounts offer 0% interest AKA interest-free overdrafts! This means you will not be charged a penny in interest if you plunge into your overdraft. This is completely unique to student accounts so use it while you can!\u00a0<\/span><\/p>\n

You should always go for the student savings account with the LARGEST OVERDRAFT! An<\/span> arranged overdraft<\/span><\/a> is a common way of borrowing money through your current account.<\/span><\/p>\n

You need to be <\/span>18 or over to get an overdraft <\/b>as UK law doesn’t allow banks to lend to anyone younger. Banks are not likely to let a student under 18 open a student bank account full stop however if you live in <\/span>Scotland<\/b> you will most likely start university at 17, so banks like <\/span>Bank of Scotland<\/b>, <\/span>Lloyds<\/b>, <\/span>NatWest<\/b>, <\/span>RBS <\/b>and <\/span>TSB <\/b>will allow you to open a student at 17, but no overdrafts. <\/span>[\/vc_column_text][vc_empty_space height=”5px”]\t

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What Do You Need to Open a Bank Account?<\/h2>\n\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t[vc_column_text]As with all bank accounts, you’ll need proof of address and identity<\/strong>. This can include your passport, birth certificate or current UK driving licence.<\/span><\/p>\n

In addition, you’ll need your UCAS code<\/strong> or confirmation letter with an unconditional offer or, if your offer is conditional, A-level results that meet that condition (or a letter from the university you’ll be attending confirming your place).<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column]\t

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Top Tips…<\/b><\/h2>\n[\/vc_column_text][vc_empty_space height=”25px”]\t
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#1: BEWARE OF THE FREEBIES...<\/h2>\n\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t[vc_column_text]According to<\/span> Save the Student,<\/span><\/a> you should BEWARE of the freebies banks offer you. A freebie worth \u00a320 is nothing compared to a large interest-free overdraft for three years or more… BEWARE and BE WISE when choosing your student bank account! <\/span>[\/vc_column_text][vc_empty_space height=”25px”]\t
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#2: Budget Planners<\/h2>\n\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t[vc_column_text]Worried about your kid’s spending? As great as student banks accounts are, giving your child a bank account with such a big overdraft is scary. The last thing you want is your child to get over-excited during their three-year term at university which results in masses of debt, regardless of it being 0% interest.<\/span><\/p>\n

What you <\/span>do <\/span><\/i>want, however, is for your child to create a solid savings habit as part of their journey towards adulthood & independence. But how? Without interfering or having too much parental oversight your kids can learn how to budget with Budget Planners.\u00a0<\/span><\/p>\n

Websites like the Money Helper have a great<\/span> Budget Planner<\/span><\/a>. Managing money can be confusing and easy to underestimate, especially when you are a student. You have books, clothes, food, nights out & transport to pay for – and of course the big one… HOUSING. A budget planner will help reduce stress and actually SEE how much you are spending & what on. Budget planners are great tools to use if you are learning how to manage your money for the first time. <\/span>[\/vc_column_text][vc_empty_space height=”25px”]\t

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#3: Know what you want from a student bank account!<\/h2>\n\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t[vc_column_text]The ‘best bank account’ is simply the one that works best for you. You should consider its benefits or whether it has any at all, as every bank offers something different.<\/span><\/p>\n

You should consider…<\/b><\/p>\n