It’s been a couple of days since A-Level results came out, and many students will be looking forward to their first year at uni in September. Unfortunately it’s also true that many of these first-time students will struggle with their limited finances.
The Guardian has published an A-Z of student finances, covering everything from Accommodation, and Bank Accounts, through to Young Person’s Railcards and Zero per cent overdrafts. They survey the market and point out some of the incentives offered by the major banks, who are attempting to entice students to open an account with them. For example:
- Barclays is offering six free cinema tickets and up to a £1000 interest free overdraft in the first year (up to £2000 in year five)
- Natwest will give new students a five year railcard if they open a new student account. They reckon that works out at an average saving of £114 each year.
Of course, banks offer freebies and large interest-free overdrafts because they know they’ll make their money back eventually. Banks are quick to charge interest on overdrafts once the student leaves university, and once an individual chooses a bank they very rarely switch.
You can read the article at the Guardian Money website.
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