Wednesday, 22 August 2012
Posted by Mozo
Heading off to university is an exciting and nerve-wracking time for youngsters and it is easy to forget about bank accounts and overdrafts when you first make the big move to a new city.
However, getting your student finances in order early on can really help you to make the most of the university experience.
There are so many different student bank accounts on the market that selecting the best one for your needs can be tricky.
Leaders at UK-based MoneyVista have urged academics not to make a hasty decision and to compare each package in detail before making a final choice.
The organisation stated that a lot of lenders will offer headline-grabbing special deals in order to attract more customers, but these can often prove to be a disaster.
Consumer finance expert at the company Teresa Fritz said borrowing money is a fact of life for most students, but it is still important to secure the best terms possible when securing a loan of any description.
"Most students need further help and the cheapest way forward is with an interest-free overdraft. However we urge students to think carefully about which student account is right for them," she remarked.
With the cost of living in major university towns increasing all the time, it has never been more crucial for students to stay on the ball.
Sometimes banks will advertise sizeable interest-free overdrafts, but youngsters soon find that they are not eligible to receive the full amount once they have entered the branch.
MoneyVista also advised people to compare the accounts offered by less established lenders, as too many students settle for a package with a major bank without looking at other options.
It is also worth keeping an eye out for banks that provide useful services such as alerts when you have reached your overdraft limit or mobile banking apps.
One thing is for sure, comparison websites have made it far, far easier for students to scour the market for the best deals.
Have a question about student banking? Ask the money gurus at Mozo Answers.