Banks and Accounts What is the right bank account for me? The types of bank account Choosing a bank account comes down to what you need from that account. Knowing what accounts are available is the key step to deciding which one is best for you. Current accounts are the most common accounts available. The features include being able to receive money (wages, benefits and SFE loans), pay cheques into the account, withdraw cash and check your balance, set up direct debits and standing orders, apply for an overdraft and maybe even earn an interest on your money depending on the bank and the account. As a student you are often on the move and tight on time, so current accounts are ideal in that you can check up on your account summary and details either online, though branches in Reading town centre, over the phone and even using your mobile phone. Banks do sometimes offer extra perks for a monthly fee, such as travel and phone insurance or commission free foreign currency when travelling. Always check if these perks are worthwhile to your specific needs. Savings accounts do exactly what their name implies. These accounts are valuable for putting away money you would like to save for big purchases, holidays or emergencies. You can get a higher interest rate on your money and, on the whole, savings accounts are great in case of difficult times to cushion you financially. Although these accounts are similar in their main function, they have a variety of different features and combinations of features. You should research all of these before you decide to commit to a particular savings account. Some features to consider can include: some savings accounts will restrict how much can be withdrawn, others will have a minimum sum that has to be paid-in monthly, whereas others will require notice of intention to withdraw. Basic bank accounts are similar to current accounts, but have fewer features. With basic accounts you can receive money paid directly into your account, take money out through ATMs, set up direct debits or standing orders. You cannot get an overdraft with these accounts so you can only spend as much as you have in your account, so an account like this may be a good budgeting tool. However, a disadvantage would be that if you do not have enough money for something you are purchasing in your account, you may be charged for this. These accounts are good for everyday use, but their interest rates are not the best.
Student Accounts are specialised and have the same features as a basic account, but also an agreed interest-free overdraft. Some banks may expect your student loan to be paid into this account. These accounts are worth investigating as they often come with a variety of offers, which are likely to be of interest to students, such as railcards, vouchers and deals. A good tip for these accounts is to shop around and compare every aspect between banks. Other Current Accounts; may be called by different names such as 'Gold' 'Premier' 'Platinum'. These accounts are the same as a basic account but offer additional services. These can include agreed overdraft facilities, insurance and better interest rates. Research is recommended if you wish to open one of these. Tip! It is good practice to have two bank accounts; each with a different bank. If you have trouble with one bank you can use the other one. Choosing an Account Free gifts on opening an account may look tempting but good overdraft facilities and interest rates will usually benefit you more. When researching which account to open compare: interest rates borrowing options charges location of free cash point machines You may find the following bank account comparison websites useful: The Money Supermarket http://www.moneysupermarket.com/ The Money Saving Expert http://www.moneysavingexpert.com/ Compare-bank-accounts http://www.gocompare.com/current-accounts/ Money Facts http://moneyfacts.co.uk/
How to open a bank account? 3 steps to opening a 'student' bank account: 1. Do your homework: Research every aspect of the student accounts available. Don't ignore the perks, but don't limit your research to just them! After all, they are there to attract you only, so look deeper for overdraft facilities and the things which matter in the long term. 2. Visit your bank prepared. Save yourself numerous fruitless trips to the bank by taking everything you need with you the first time. Your ID is a given, but also make sure you bring a proof of address. Most importantly, a student account is just that, an account for students. You must prove you are a student. This is simple: just bring along your UCAS offer/confirmation letter. 3. Open your account - Listen to all that the bank clerk will tell you on your visit and make smart choices. If something does not sound right, ask! You don't want to sign something you will regret. Tip! Proof of address - Your UCAS offer letter can serve as both a proof of address and a proof of you being a student. International & EU Students You should be able to open a basic bank account with a number of different banks. Some banks even offer a bank account tailored specifically for your needs as an international student. A good tip is to check whether your chosen bank: Has branches in your home country Has a branch on campus or near the campus Offers on-line banking Offers you to withdraw cash for free from cash machines Requires a minimum deposit or a monthly fee If you experience any problems with opening a UK bank account then you can receive individual and confidential advice from the RUSU Advice Team. A very useful leaflet entitled "International Students Opening a UK Bank Account" is available from the British Banking Association (www.bba.org.uk). You could also look at the UK Council for International Student Affairs website (UKCISA) and their "Banking for International Students" webpage at www.ukcisa.org.uk.
How manage my account? As a general rule if there is money in your account then you will not be charged a fee. However, if your account becomes what is termed 'overdrawn', that is to say your account balance is less than 0, you could incur some charges. You should discuss arrangements for unplanned overdrafts with your bank to give you a peace of mind. Overdrafts are a comfort. However, be careful of charges and going into your overdraft. These are usually detailed in the information for bank accounts, but you should ensure you ask when you go to the bank and be clear on how much exactly you will be charged on overdrawing; this usually depends on how much you have overdrawn and for how long. You can find out how much money you have in your bank account by: using a cash point machine for today s balance logging onto on-line banking which should allow you to see a history of your transactions. reviewing you bank statements which most banks send to you on a monthly basis calling a telephone banking service most banks offer this service which will give you access to balance details after confirming your security details. visiting a branch of your bank Bank ATMs on the Reading Campus Barclays (in RUSU and the Campus Shop) Santander Most major banks have branches in Reading Town Centre and most you can find on the main shopping street; Broad Street. If you are concerned about money or would like help budget please contact the Advice Service. INDIVIDUAL HELP AND GUIDANCE IS OFFERED BY THE ADVICE SERVICE AT RUSU. Contact us: advice@rusu.co.uk 0118 3784100 Visit us at the RUSU Building, Whiteknights.
Produced June 2015