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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 even 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.

Investment bonds can be incredibly lucrative, and it is important to learn all you can about them before moving forward. They are essentially life insurance policies that allow you to invest a certain amount of money in various funds. The amount of money that you get from will depend on how they perform as a whole. While this definitely isn’t a risk-free investment, there is a good chance that you can make some money.

Who Should Look into Investment Bonds?

The average investment minimum amount for investment bonds is around £5,000. Not everyone’s budgets allow for this, but it can be well worth it if you have the extra cash. Those who are patient and want a long-term investment will find that this can be a great option. You most likely won’t be able to access your funds for several years. You must also be willing to accept the fact that your investment’s overall value could depreciate significantly over time.

How it Works

Investment bonds usually demand a lump sum amount of anywhere from £5,000 to £10,000. While there is no minimum amount of time that you have to commit to an investment bond, you could suffer penalties if you take your money out too soon. It is highly recommended that you find a good financial adviser who can provide you with some good suggestions. The last thing you want to do is to choose the right fund to invest in.

The total return you get from these bonds varies depending on how well they do and when you choose to get paid. They can vary wildly over the years, so you need to accept the inherent risk that comes with this sort of investment. Some bonds will provide you with a guarantee for returns, but there is always the possibility that the counterparty won’t work out.

Types of Funds

There are two main types of investment funds that you should know about. The “with-profits” policies have been the most common option available over the years. These investments gain value on a yearly basis, and returns are guaranteed. One of the potential drawbacks to this option is that the value of the investment remains a mystery until it matures or you surrender.

The other option is “unit-linked”, in which all of the money you invest is held in an investment fund of your choosing. You have the option of selecting equities or property, depending on your personal preference. The great thing about this option is that you have total say over how your money is used in every single fund. These funds are broken down into units that you can purchase. The total value of these units varies based on how the investment fund as a whole is doing.

Risks

You will need to accept the risks that come with investment bonds before making a choice. If you want to minimize risk as much as possible, you should choose a with-profits fund, as your returns will be guaranteed. It is a good idea to select a bond that will let you put your money into many different funds so you can transfer your money around as you see fit. If you happen to die during the investment term, it could pay out a higher amount that the total value.

Getting Your Money

While it’s true that you can choose to take out all or just part of your money whenever you want, there might be a penalty you’ll have to pay. Sometimes this penalty is relatively small, but it could be quite substantial. It’s important to keep in mind that you might have to submit to a tax charge. You will be allowed to take out a certain amount every year, but you cannot exceed the pre-determined amount. It is possible to take out five percent of your investment each year without having to worry about any tax issues.

Charges

There is a chance that you will be charged if you take out your money before the bond has fully matured. If you have selected a with-profits bond, you could end up spending more in fees. If you decide to surrender within the first two or three years, it is likely that you will be charged something.

Should I Choose Investment Bonds?

The money that you invest in these funds will be safe, unless the insurance company goes under. This is one of the better options for those who want a good long-term investment with not a lot of risk. You will, however, want to spend some time looking over your options. There is always a chance that you could lose money on your investment, depending on the charges and how it performs. The more you learn about this option, the better off you will be.

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Banking Tips Every Student Should Know