Student Banking

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.

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Why Do You Need a Student Bank Account?

1. Easy access to funds while studying abroad
A student bank account is the best way to transfer funds from your country and withdraw money from ATMs in the UK or Ireland without the hassle of carrying cash along with you. You can easily pay for daily expenses such as rent, groceries and transportation and even make international payments.
2. Secure handling of money
A student bank account ensures the protection of your money against losses like theft or scams. The British and Irish banks boast tight security measures, including two-factor authentication for online banking and 24/7 cybercrime monitoring. Additionally, if your card gets lost or stolen, most banks offer quick processes to block the card and issue a new one, so that your money remains protected.
3. Better money management with a dedicated account
Having a dedicated student bank account allows you to manage your study-related expenses separately from your personal finances. In this way, maintaining a budget becomes easier, you avoid impulse purchases and even keep track of your spending. With this, you also have a clear overview of your account balance, which can help you stay on top of your financial situation. The majority of student bank accounts come with budgeting tools and mobile apps that make tracking and categorising your expenses much easier.
4. Benefits exclusive to student bank accounts
From cashback on daily expenditures to discounts on retail shops and travel-oriented perks like fee-free international fund transfers, a student bank account takes care of everything for you. Furthermore, some accounts offer student-specific rewards programmes that offer savings on everything from transport to entertainment, so you can maximise your account’s value.

Types of Student Bank Accounts

When setting up a bank account in the UK or Ireland, you will find many attractive choices. However, you should eventually open your account in a bank that meets your student needs and offers the best benefits.

Basic Account

The basic student account includes the essentials and is designed for ease of use, often with no frills. This is a huge leap forward, as they offer functionality such as deposits, cash withdrawals from ATMs and direct debits. However, these accounts do not have an overdraft, chequebook or credit card feature and are thus recommended only for students who do not plan to go beyond their account balance. When it comes to the eligibility criteria, some banks require the student to be 16 years or older, while for others, it is mandatory to be 18 years of age in both the UK and Ireland.

Student Current Account

Unlike a basic account, a student current account is a more detailed account offering a vast range of facilities tailored to cover student’s expenses regularly. One of its most prominent features is an overdraft, through which students can loan funds (with an interest waiver for up to a certain period), allowing them a grace period in case of emergencies or unanticipated expenses. Moreover, you can use mobile banking to transfer money (domestic or international), check balance and process all the transactions.

International Student Account

The importance of international student accounts is paramount as these are developed to cater to students coming from different countries and generally offer specific services such as arrangements for international wire transfers and other multi-currency assistance. If you have to send money home or exchange currencies while being there, this can simplify managing your finances a great deal. International student accounts also come packed with benefits such as multilingual customer support, which may be useful if you are not yet fluent in English.

How to Choose the Right Student Bank Account

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.

Overdraft Facilities

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.

Fees and Charges

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.

Ease of Access

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.

Additional Perks

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.

Steps to Open a Student Bank Account

The student banking procedure in the UK or Ireland is swift and effortless. Let’s take a glance at what is required to be submitted by the student to get started with this!

Required Documents

  • Passport/ID: A valid passport or a national ID card to verify the identity.
  • Visa: You would need to provide a copy of your visa.
  • Letter from the University: You may need to authenticate your student status by presenting a letter from your university.

Tips for Preparing Documents Before Arrival

It is central to gather all these credentials timely before leaving for the UK or Ireland, in order to prevent any further delays on arrival at the university.

Application Process

As much as there are banks that permit you to complete the process online, some may require that you walk into the local branch to go through the identification and document verification process. After the approval and processing of the application, you should expect to wait for three to ten working days maximum to get the account activated. Thereafter, your debit card and account information will be sent to you by mail.

Setting Up Online Banking

The majority of banks in the UK and Ireland provide Internet banking options, where once your account is activated, you should begin setting up online or mobile banking to manage your expenditure.

Benefits of Online Banking for Students

  • You get 24/7 access to your account.
  • Students are free to make payments and transfers anytime.
  • Banks send real-time notifications for transactions.
  • It enables quick account management and budgeting.

Security Tips for Safe Online Transactions

  • You should try to keep lengthy passwords.
  • Make sure to enable two-factor authentication.
  • Most importantly, do not forget to regularly monitor your account for any unidentified activity.

Managing Your Student Finances Effectively

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:

Budgeting Tips for Students

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.

Steps to Budget Effectively

  • As a student, you are advised to keep a tab on your routine costs including groceries, mobile expenses and other necessities.
  • Calculate all the optional expenses such as entertainment, leisure travel, etc.
  • Above all, always try to make monthly savings for any spontaneous expenses that may arise.

How to Save Money While Studying Abroad

  • If you know that you are going to be travelling on a certain date, then instead of booking last-minute tickets, book your flight at least 12 weeks in advance.
  • Acquire an oyster card (plastic smartcard that is a substitute for paper tickets) if you reside in London or travel to London frequently.
  • Students admitted to Irish Universities can get a leap card to avail of huge discounts while travelling.
  • One can also Hunt for huge discounts using the NUS (National Union of Students) card.
  • Books can be exorbitantly expensive, so instead of buying books, borrow them from your classmates or make a visit to the nearest public library or your university’s library to get them issued.

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.

Handling International Transfers and Currency Exchange

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.

Tips for Avoiding Transfer Fees

  • To avoid unnecessary charges, always try using your bank’s international transfer services as opposed to third-party applications.
  • You may also consider a currency exchange service to avoid unfavourable exchange rates.

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.

FAQ

Many banks allow online account opening but some may require a visit to a local branch in India. It is advised to check with the chosen bank for specific procedures.
You can simply transfer money through online modes like international wire transfers, internet banking or third-party transfer services to send money to your international bank account.

Conclusion

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.