I have heard co-op is really slow to set up, and TBH I dont know what this fascination is with large 0% overdrafts. Even if you put the full £1400 into a 3.5% savings account. Its only made you £49 pounds in a year. Which works out at about £1 per week. You could essentially save that money over a week by choosing to skip a chocolate and a packet of crisps...
The ONLY rational reason for a student to expose themselves to credit is to meet the covering of costs if their loans are late. But I would say get a £500 overdraft or something and use that. But don't fall into the idea of having £1,400 on tap as if you do come up short. Its in your name, and no one will bail you out.
People find it daunting sometimes, but only those either uneducated or with no experience of banking generally find this so. I set up a loyalty ISA with Barclays the other day and I set it up and left inside 30 minutes.
Basically:
Barclays - Excellent customer service and an excellent online banking system. £200 0% overdraft usually offered when opening, but it can be extended.
Natwest/RBS - £500 overdraft usually offered. If you're not with them for a current account or havent been with them previously then you wont get the railcard...
HSBC - High overdraft limits, but likely to be well less than £1000.
Co-op - Large guaranteed overdraft. "Ethical banking". As well as one year to repay any outstanding overdraft once graduated.
Think of your future. Its probably better to get a reputation on file with a solid high street bank now (Barclays for me) than waiting until graduation. + Very often the high calibre accounts from those banks can generally offer you more. Also, in adult life you will NEVER have an extended 0% overdraft period for a time of years...
I will probably open my student account with Barclays as I currently have my savings and current account with them. Banks are not "evil", but if you are stupid and over spend on money you know isn't yours and you are caught by a credit noose. Then its your fault.
There are plenty of ways to save money without imagining the need for a large overdraft:
- 1 month rolling phone contracts. Get a phone thats FUNCTIONAL with a qwerty keyboard and relax at paying £10 a month while others bleed £30 a month in long term contracts to have a "2.3Ghz" processor which does NOTHING useful.
- Pre drink if you go out, but dont get smashed as this results in overspending usually and stupid / very bad things happening sometimes if you are someone who cant control themselves when drunk.
- Eat HEALTHIER, actually eat the calories your body NEEDS, then stop. Rather than binging on food.
- Use £1 per pint nights and stuff like that, try to make the pub or drinking a good social thing made a day or too in advance. Not just a "dave do you wanna pint?" moment which will last about 20 mins, cost money and you will go your separate ways having gained nothing extra.
- Always apply for the MAXIMUM grants and loans as well as MAXIMUM bursaries and things like that, basically any NO REPAYMENT/STUDENT LOAN stuff you can get. Put it all into a high interest easy access account. Also add any part-time work in there. Use online banking to then transfer money to your current account at short notice (e.g. you are going to the pub tomorrow), which should be available right away... Don't leave £1000's sat in 0% interest. Throw any money you have immediately into your savings as interest is calculated at close of business and every little helps...
Meh,