Which student account 2008 (UK)?

Question

Hello,

Wanting to open a student account ASAP and have gotten a letter through from my current bank, Barclays, asking me to send off a slip saying whether i'd like to change my account to a student account or not.

I was thinking of going with Halifax but, from what i see, Barclays doesn't seem too bad. I don't think I'll need to go into an overdraft excessively but I don't know too much about all the ..banking terms.

Here's a table, could someone that knows banking tell me which would be best? Thanks.

http://www.moneyfacts.co.uk/banking/bestbuys/banking_stud_accounts.aspx

Answer 1

In order to pick the best student account you first need to look at the interest free overdraft, as like you said this is where you are likely to be living from while at university. Halifax offers the largest interest free overdraft of up to £3K.

Next you need to consider what they will charge you if you need a bigger overdraft than their interest free entitlement. Halifax is 7.2% and Barclays is 8.9%.

Also don't be swayed by the incentives, these should be a perk and not the reason you take the account.

Good luck

Answer 2

I'd say Barclays had  one of the better deals, if not that one i'd chose HSBC student service account. Interest on overdraft is 3% compared to most at 9.9%.

Answer 3

HSBC was my choice on the page you listed.  Highest interest on credit balance, and interest free on overdraft as long as it is authorised and kept within guidelines given, also limited credit card max will help you not to overspend