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    I am about to start Uni and all my friends are getting student bank accounts. I am currently using a normal bank account and as far as I can see, the only benefit of a student one is the possibility to apply for a larger overdraft and the odd incentive prize.
    I don't particularly want a larger overdraft as my mum will always help if I am stuck and I don't want to get into debt.
    Is there any other benefits of student bank accounts that I should be aware of?
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    (Original post by sophie-leeds)
    I am about to start Uni and all my friends are getting student bank accounts. I am currently using a normal bank account and as far as I can see, the only benefit of a student one is the possibility to apply for a larger overdraft and the odd incentive prize.
    I don't particularly want a larger overdraft as my mum will always help if I am stuck and I don't want to get into debt.
    Is there any other benefits of student bank accounts that I should be aware of?
    I'll be applying for Santander as their student bank account gives you a free rail-card (1/3 off rail prices)
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    (Original post by RandomStudent890)
    I'll be applying for Santander as their student bank account gives you a free rail-card (1/3 off rail prices)
    I will be taking my car so the train and coach cards aren't any use for me
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    I was wondering this as well. I've been told i need a student bank account but I don't really see why. Some of them dangle little bribes on the end (rail card, amazon voucher) but they don't seem to do anything a normal bank account doesn't.
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    (Original post by sophie-leeds)
    I am about to start Uni and all my friends are getting student bank accounts. I am currently using a normal bank account and as far as I can see, the only benefit of a student one is the possibility to apply for a larger overdraft and the odd incentive prize.
    I don't particularly want a larger overdraft as my mum will always help if I am stuck and I don't want to get into debt.
    Is there any other benefits of student bank accounts that I should be aware of?
    Pretty much just the option of a large free overdraft and some extra incentives like rail cards.

    Free overdrafts change the value of zero in your account, effectively giving you money that you eventually give back in a few years at no cost. You can consider it an interest free loan for three years, if you like.

    In hindsight I should have got one if only to invest the money and earn some interest before giving it back later. I went through four years as a taught student without any overdraft. It wasn't easy, but it is certainly doable if you control your spending.
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    (Original post by sophie-leeds)
    I am about to start Uni and all my friends are getting student bank accounts. I am currently using a normal bank account and as far as I can see, the only benefit of a student one is the possibility to apply for a larger overdraft and the odd incentive prize.
    I don't particularly want a larger overdraft as my mum will always help if I am stuck and I don't want to get into debt.
    Is there any other benefits of student bank accounts that I should be aware of?
    Think of the overdraft as a safety net. Should something drastic happen such as someone steals your laptop and you need to buy a new one, or your mum or dad get made redundant, it's nice to know that you've got what is an essentially an interest free loan that you can use to temporarily keep you afloat.

    With this in mind, you need to keep the mind set that an interest free overdraft is for emergencies only. This means its not for nights out, its not for holidays abroad and its not for buying material goods like unnecessary clothes and gadgets. It is only to use when you have no money for essential items like books, food or accommodation.

    On the point of accommodation, having the overdraft will be useful for when you need to pay a deposit on your house for the second year. If you don't have the money to do this (which after the purse pinching 1st year will probably be the case), this overdraft will be vital to ensuring you're not homeless in the 2nd year.


    But don't be swayed by the freebies. For example, you can buy a santander rail card with the overdraft amount anyway. Besides they're not terribly expensive.

    Furthermore, don't go for an overdraft that is "up to" an amount. HSBC for example offers "up to" £3000, but they're policy states that they will only really give between £500-£750 for the three years.
 
 
 
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