A simples guide

Is it possible to have more than one student bank account?

University’s about the only time you’ll be inundated with offers of money without having to do something dodgy for it. We know it probably doesn’t feel like it when you’ve got a mountain of outgoings to pay for but if you’ve got a good student account, it really is worth its weight in gold.

You might be tempted to try and milk the system for all it’s worth and try and open up more than one student account in order to maximise your free overdrafts – but should you do it and more importantly – can you do it?

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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.

More accounts mean more responsibility

If you’re adamant that you need more than one student account and have found a couple of banks who aren’t bothered about sharing your custom just take an extra minute to really think about it. Having two interest free overdrafts of £1,000 each might sound like an easy way to a couple of grand but the more overdraft you have, the more you have to pay back. 

Credit cards

Don’t throw caution to the wind – it’s not free money

When you’re getting a round in or eyeing up a new pair of shoes, it’s tempting to dig deeper into that overdraft – it’s interest free after all, right? Well, yes it is, but that’s not the same as someone giving you a load of cash and not wanting it back. The clue’s in the name – interest free – not just free. And if you do somehow manage to open two student accounts and don’t manage it well, you could see your debt spiral out of control. Don’t be fooled – ‘overdraft’ is just a prettier way of saying ‘debt’.

You’ll always need to pay back your overdraft and if you’re seen exploiting it or repeatedly go over your agreed limit, you may find yourself with hefty fines and extra charges. Don’t forget that how you manage your money now is likely to leave a lasting impression on your credit history. Manage it well and you shouldn’t struggle with getting credit later but splashing out well beyond your means could mean you struggle with loans, credit and a mortgage later on.

Piggy bank and coins

Stay on top of the world (well, your money mountain at least)

Don’t live it large and try and stay well within your means, let’s be honest – it’s not rocket science. Manage your money responsibly and you won’t leave with a mountain of debt the size of Everest (maybe more like K2). And because we love comparing stuff you can find the best student account for you, right here

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