All for one and one for all
Well, sort of. There are lots of student bank accounts to choose from and you don’t have to pledge loyalty to one forever but it’s still worth choosing wisely in the first place. Pretty much all student bank accounts will offer you some sort of interest free overdraft – meaning you can spend more money than you technically have – up to an agreed limit; at no extra cost.
The one thing you should look for when you consider opening your new student bank account is the level of that interest free overdraft that you are offered. Some banks will offer you a guaranteed overdraft and some banks will sneakily word it ‘up to’ meaning they could credit check you and offer you less or they only offer the higher amounts during your last year - so always read the small print.
Another small print clause that you’ll need to make sure you’re clear on, is whether you can open up another student bank account with another bank. Some banks won’t mind, but others will stipulate outright that you can’t. Or, some will say that your account with them needs to be the one where the bulk (or all) of your student funding goes into. In other words – you’ll probably only be able to open one. Make sure you monitor the amount of open accounts you have. Multiple credit checks and open accounts can look bad in the future when you might need to apply for further credit or a loan.
Of course, there is nothing to stop you opening another non student bank account (such as a savings account) at the same time. You may find it easier to manage your big outgoings like tuition and rent from one account and use your student account for day to day finances so you know exactly where you stand.