If you are a college or university student, there are certain tips that can make your entire banking experience much easier. A lot of younger people don’t think very much about which bank to choose or the fees they pay, but these are very important things to consider. It is crucial that you take the time to get this information so that you can get what you need without having to pay more than necessary.
Shop Around for the Right Bank
With so many different banks to choose from, it is a good idea to shop around so that you can find the best one. Look into what each bank has to offer so you don’t make the mistake of selecting one that you will regret in the future. Selecting the right place to keep your money will make it easier to accrue as much interest as possible over time. This research can also help you to pay less when you need to borrow money for any reason. Compare what each bank offers so that you end up selecting the right place.
An Overdraft can Benefit You
When you have an overdraft with your bank, you won’t have to worry about paying ridiculous fees if you spend more than you have in your account. Students usually don’t need to pay for this little perk. It also means that you won’t have to deal with interest building up on any money you have to borrow.
Overdrafts provide students with money that can help them in a bad situation. You will also save a substantial amount of money in fees over time. Those who don’t have an urgent need for the money have the option of putting it in another account that accumulates a lot of interest. You must only spend within your limit and follow all of the terms to the letter for this to work.
Open Up Another Account
While it is true that you may be limited to just one student account, but you will still be able to open up a second regular bank account. This can be incredibly advantageous for keeping the money you earn from your job or student loans. You can even get a pre-paid credit card that you can load up with the funds in this second account for your regular expenses. Make sure that you open up the other account at a separate bank if you want to get a higher interest rate.
Take Advantage of Auto Saving
A lot of banks and credit unions throughout the UK offer an auto-saving option that will automatically put aside a certain amount of money with each of the deposits you make. This can be incredibly useful if you want to establish an emergency fund. Even students should have at least some money set aside just in case some important and unexpected expense arises. Take the time to find a bank that offers this option because of how incredibly helpful it can be for saving money. The more money you have saved up, the better prepared you will be for any eventuality.
Use Your Credit Cards Wisely
You should never use a credit card for buying things that you can’t really afford. It is very important to be careful about how you use your plastic. It is generally a good idea to only use credit cards in an emergency.
Sometimes it is a good idea to use your credit card, such as when you are making a purchase that goes past £100. If this is the case, you will have Section 77 protection, which means that you can get your money back from your credit card company if the seller gives you any trouble.
Make sure that you know exactly what all of the conditions of your credit care are so that you do not unknowingly violate any of them. It is a good idea to stay as far under your limit as possible, as it will reduce the chances of going into debt while improving your credit score.
Consider Joining a Credit Union
There are certainly a number of credit unions throughout the UK that you can become a member of. These financial institutions are a good choice for a number of reasons, including the fact that they tend to offer good rates on loans. If you ever find yourself in need of a loan for a new car or home, a credit union is usually the place to go.
All students need to make a point of considering where they are going to bank, as it is something that impacts all aspects of your finances. The more time you spend looking into these things, the easier it will be to save money and maintain your finances with minimal frustration.