Machines cash in on students

By JUSTIN HARPER FOR MAILONLINE
Updated: 10:15 EST, 7 December 2005

STUDENTS returning to university risk being charged rip-off rates to withdraw their own money from campus cash machines. Nearly half of all UK's universities now host cash machines that charge a fee for withdrawals.

And more than 10% of universities and further education colleges have more fee-charging machines than free ones within walking distance of their campus.

Charges average £1.50, but can be as high as £5. Nationwide Building Society, a prominent campaigner against the growth in fee-charging cash machines, estimates that students will pay more than £4m a year to access their own money.

Research carried out by Nationwide for Money Mail reveals that there are a staggering 1,888 fee-charging ATMs within half a mile of universities. There are more than 700 charging machines within a quarter of a mile of the main university/further education college campuses. And 133 universities have feecharging ATMs on the grounds of their campuses.

Stuart Bernau, Nationwide's executive director, says: 'Students will generally make more withdrawals of smaller amounts meaning that fee-charging ATMs hit them particularly hard.

'Given that students are generally on a tight budget, a valuable lesson for them when returning to university is where to find the nearest free ATM.'

The worst hit students are those at Sunderland University where the main campus has no fewer than 15 fee-charging machines within a quarter of a mile charging between £1.50 and £1.75.

The University of Gloucestershire has six fee-charging machines and just one free one within walking distance. Chichester College of Arts & Science has a Cardpoint machine charging £1.85 on its campus. Newcastle College, University of

Central Lancashire, Staffordshire University and London South Bank University all have nine charging machines within a quarter of a mile of their campuses. The disappearance of fee-free cash machines is a growing concern for MPs.

The Treasury Select Committee has been investigating why so many machines are now charging a fee. More than 40% of ATMs around the UK now charge a fee.

ANDY TRACE has been caught out by fee-charging cash machines within walking distance of his University of Glamorgan campus. Andy, 19, is getting ready to return to university to start his second year reading media production.

He and his friends have not only been caught out by charging machines near campus but also when they travel into nearby Cardiff for shopping. He says: 'It's very annoying spending time and effort trying to avoid these machines. I'm always being caught out when I need money quickly or don't have time to travel further afield.'

Halifax offers no Xtra

STUDENTS looking for the best-paying bank accounts as they head back to university may want to cross Halifax off their list - it has just dropped the interest rate by 0.5% to 2% gross.

Halifax says it is taking into account the last two base rate cuts and argues most students won't be in credit for most of term. Instead it is focusing on borrowing rates by offering £1,750 interest-free in the first year of study rising to £2,100 by year three.

These are the most generous overdrafts on the High Street for students. Clydesdale Bank and internet bank Smile both pay 3.25% and Yorkshire Bank pays 2.85% on credit balances.