Where should I bank?

By THIS IS MONEY
Updated:

 

What is the best student account? SC, Kilmarnock.

Linda Whitney says: it depends what you want. Work out your priorities - do you want a free overdraft or low overdraft rates, an easily accessible cash machine, high credit card limit or low card interest rate or simply a good free gift?

A recent survey by Money Mail judged Lloyds/TSB, NatWest and Barclays to be best for borrowing, with free overdrafts ranging up to £2,000 in some cases, while most accessible were Royal Bank of Scotland, Halifax and Barclays, judged by number of free cash machines, but obviously the most accessible for you will depend on where you study and live.

Best give-away was judged to be Barclays with bookshop vouchers, mobile phone or electronic organiser. Barclays came out best overall.

Watch out for high charges on unauthorised overdrafts that go over the free limit - you could pay 20-30%. And note that high overdrafts are often limited to students taking four or five year courses. Credit card rates are usually high too - it's often cheaper for students to extend their overdrafts (with the bank's agreement) than pay by credit card. What's more, before you open an account check whether you meet the bank's definition of a student.

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