Studying abroad is an exciting adventure, but it also comes with unexpected practical challenges, especially in terms of finances. To that aid, setting up a student bank account is one of the most crucial steps in ensuring smooth financial management while studying in the UK or Ireland. While Barclays, HSBC Lloyds and NatWest are some of the biggest and most illustrious banks in the UK, the Bank of Ireland and Allied Irish Bank stand out in Ireland.
This extensive guide will walk you through everything you need to know about student banking, empowering you to make informed financial decisions for your time abroad and fully immerse yourself in the pursuit of chasing your dreams, while keeping your financial affairs seamlessly in check.
In the quest to pick the right student account for yourself, have a look at a few contributing aspects to keep in mind while doing so.
Student interest-free overdrafts are available in almost all the prestigious UK and Irish banks and they are a great way to meet urgent financial obligations or short-term cash needs. For instance, you can use an overdraft to help cover costs up to a certain limit without incurring any additional fees when you pay your rent or need to purchase any course material. It is also crucial to understand some common overdraft facts like what fees may apply if you go over your authorised limit. Therefore, it is advised to choose an account with higher credit limits if you must use this facility frequently.
Students need to pay a nominal fee to banks like monthly maintenance charges, ATM withdrawal fees and international money transfer charges. Some banks charge for paper statements as well, so opting for online banking and paperless statements can help you save substantial money. It is also imperative to be aware of currency conversion, international transfers and late payments. To prevent excessive charges, pick an account that is ideal for your expenditure and helps you improve your overall credit score.
As a student, you must check if there are ATMs / branches of the bank close to your university or accommodation. Although some banks allow you to use any ATM within their network for free, others may impose a fee (or percentage of your withdrawal amount) if you wish to use an out-of-network ATM. Additionally, online banking is advantageous for students who prefer to keep regular track of their finances through laptops or phones. So, choose a bank with maximum user-friendly online platforms that will allow you to transfer money, pay bills and monitor your spending easily.
Whether cashback on your everyday purchases, discounts on retail stores or travel benefits such as fee-free international money transfers, students can enjoy a plethora of perks that will help them become more economically efficient while studying abroad.
Additionally, you might find some special offers from banks on transport such as discounted railcards or travel passes for students. There are also various student-oriented rewards programmes on major online and offline outlets. So, before you go ahead and pick an account for yourself, think of all other advantages that are relevant to you and how well will the benefits offered by the bank help you out during your time in the UK or Ireland.
Efficient money management is the key to ensuring a successful and stress-free time studying abroad. Below are some useful pointers to help you manage your finances in the UK or Ireland:
Creating a monthly budget can help you keep track of your regular income and expenses. You can download budgeting apps like Wally, Splitwise or YNAB to keep track of your finances.
Benefits of Using Student Discounts and Cashback Programmes: Various retail stores offer exclusive discounts for students. Moreover, students can get an ISIC card, enjoy huge discounts worldwide and become a part of the global student community.
When it comes to overseas money transfers in different currencies, every bank charges a certain amount. You should thoroughly analyse all the options and then choose a bank that suits your needs and gives you the best offers.
Benefits of using bank services over money transfer apps for large transfers: If you need to transfer large amounts internationally, you should use a bank service rather than a money transfer app since banks often offer lower fees, better exchange rates and higher transfer limits than money transfer apps. Another noteworthy point is that authorised banks provide stringent security and offer top-notch user assistance and quicker transaction time, ensuring a premium customer experience for everyone.
In essence, securing the right student bank account is pivotal for a seamless and efficient financial experience while studying abroad. It enables you to manage your expenses with ease, streamline international transactions and unlock exclusive benefits. With a well-chosen account, you can navigate your financial landscape effortlessly and enjoy the freedom to focus on your academic endeavours and seize incredible opportunities that the UK and Ireland have to offer.
Fateh has helped over 35,000 students conquer their dreams with our 120+ top UK university partnerships. Are you planning to study an MBA in the UK? Contact us today.
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