Friday, 25 November 2011
Posted by Mozo
Academics who want to compare student accounts to see which bank offers the best overdraft facilities need to be careful.
While having a low interest overdraft can provide some much needed funds for cash-strapped university students, it should not be taken for granted.
The bank is merely loaning this money to you and expects to get it back, so don't rely on it too much.
Students also need to be very wary about exceeding their overdraft limit, as many providers will charge large amounts and this can result in many accountholders entering a downward spiral, where they are unable to stop themselves going over the threshold.
So while there are a number of attractive packages that can give students a helping hand – particularly if their course is so demanding that they cannot hold down a part-time job to cover their costs – it is wise to plan spending carefully and to stick to a rigid budget.
Another important consideration when assessing student banking options are online services, which in many cases, are improving all the time.
Have a question about student banking? Ask the money gurus at Mozo Answers.