Changing needs: Your needs in your third year might be very different to when you started university – you might not be living in halls, your rent could be higher and you might have a work placement that will require you to travel. It’s worth pre-empting what your needs might be and see if your bank will accommodate them. Some banks will increase your overdraft depending on the year you’re in, giving you some financial flexibility.
Cancellation: You should be aware that your bank has the right to cancel your overdraft at any time, so don’t go on a mad spending spree unless you can afford it.
Your credit rating: Your student banking habits will form the foundations of a good credit history, if you manage your finances effectively. If you don’t, you could be left with a poor credit record that could shut the doors to future borrowing.