Please Login to view "member only" content

Student Account Jargon

Banks and Building Societies realise the important of student customers. Potentially, you are the high earners of the future. Consequently they offer competitive packages, inclusive of interest free overdrafts facilities (unless you go over your agreed overdraft limit), to entice you to bank with them. Student accounts are special current accounts offered only to students. If you do not have a student account and you have a normal overdraft on which you are paying interest, you should consider getting an interest free student overdraft instead. Shop around and take advantage of the packages on offer. However, do remember to read the small print and terms and conditions before you take out a student account. Choose the account on the basis of the interest paid if you're in credit, the interest free overdraft they will give you, charges applied to the account, interest if you go over your agreed overdraft limit, etc, rather than just on the freebie the bank is offering. i.e. free railcard, £50 in your account, etc. 

Tips for running your account:

Keep a record of the money that you pay in and take out of your account (deposits and withdrawals). Include money you take out via the cash point, cheques, purchases you make with a debit card, (delta or switch) standing orders and direct debits. Cross-reference your records with the bank statements you receive. This will help you to monitor your financial position throughout the year.

Student Overdraft Facility:

An overdraft is a service provided by banks. It allows you to write cheques or make other withdrawals from your account, even when there is not enough money in the account to cover them. It is a form of credit. If you need an overdraft, request one as soon as possible.  If you arrange an overdraft facility with your bank and then you don’t have to use it, you do have to.  Remember: An overdraft can help smooth out your cash flow when your regular income does not match your outgoings for a short period of time. It should be regarded as a "safety net", for a fixed amount and a specific time period.

What should I do if I need an extension to my overdraft?

  1. Consider the reason(s) why you need one. Is it to cover a temporary cash flow situation or something more long term?
  2. Complete a financial statement/budget planner which you can use in negotiations with the Bank (see SAC Financial Statement)
  3. Contact your Bank's Student Adviser to request an extension. Preferably arrange to see them in person. Be assertive in requesting the amount you want. Back up your request with available supporting evidence and don't be afraid of putting your figures on paper.
  4. If unsuccessful contact the Student Advice Centre, who may be able to negotiate an extension on your behalf.
  5. Don’t exceed your agreed overdraft limit. Always agree an extension with your bank. Otherwise you will have an unauthorised overdraft, incurring interest at a time you can least afford it. This is also likely to have adverse implications on your relationship with your Bank. As a general rule, when an overdraft is not authorised any cheques or withdrawals can be "bounced"; that is the Bank refusing to honour them and probably making a charge for returning the item.

I'm unhappy with they way that the Bank is treating me. What should I do?

Talk to the Bank. Try to sort out the problem. Always let them know if you are unhappy with their services. If you don't get a satisfactory outcome, ask the Bank about its internal complaints procedures and make a formal written complaint. If you have not received a response after eight weeks, you can complain to the Financial Ombudsman Service.

If all else fails and you have lost faith in the Bank, you could consider moving your account to another Bank. Make enquiries with other Banks about moving your account and if appropriate make the Bank aware of the difficulties that you encountered with your original Bank. Don't forget to close the original account.

A WORD OF WARNING ABOUT HAVING MORE THAN ONE STUDENT ACCOUNT!

This is not a good idea. It's difficult to try to juggle more than one student account. Moreover the Bank is likely to become aware if this: for example when your next student loan instalment is due to be paid into your account. You not only risk the Bank closing your account but also being pursued for any outstanding overdraft.

The bank has refused to allow me to open a student account. What should I do?

Make enquiries with the Bank as to why. If you have had credit problems then this could be the reason (see our page on credit and debt for further information about Credit Rating).

Back to Banking Jargon

Smartphone App

Get the student experience on your phone. Staffordshire University Students' Union presents a handheld guide to your hottest news, photos, videos and events. You'll also find details for a range of clubs and societies you might enjoy.


App Store

Android Market

We Tweet

    Social Media

    Facebook Twitter YouTube

    Your Opinions Count!

    If you have any comments, suggestions, requests or feedback, please visit:

    www.staffsunion.com/feedback