BANKS ARE COMPETING FOR STUDENT ACCOUNTS BUT BEWARE THE SMALL PRINT Express.co.uk
Even though times are tough, the banks are still hungry for a share of the student banking market, says Andrew Hagger, from Moneynet.
Theyre the big earners of tomorrow and the banks will be hoping that by signing them up now they will go on to take out profitable investment, mortgage and pension products later in life.
Crucially, the main element of a student bank account is the ability it offers to borrow funds as cheaply as possible. Discount offers and cinema tickets may have short-term appeal but these should be seen as a perk and not the reason for selecting the account, says Michelle Slade from financial analyst Moneyfacts.
As most students spend their university life living in the red, it is worth finding an account that offers a good interest-free overdraft.
For those starting their studies this September, Halifax and HSBC have the largest interest-free overdrafts. Both offer £3,000 for five years, while Barclays has an interest-free overdraft of up to £2,000 for five years.
