Starting postgraduate full-time study may mean you’re eligible for a student bank account which could be useful.
If you are moving straight from undergraduate to postgraduate study, you may still have your student bank account with an interest free overdraft facility. Check with your bank how long this will continue and if this can remain in place for your postgraduate course.
However, if you have had a gap between undergraduate and postgraduate study, your account may have been switched to a graduate account. When you return to full-time study, ask your bank if you can switch your account back to a student account so that you can benefit from an interest free overdraft facility and let them know if your Postgraduate Loan will be paid into the account.
If it is some time since you had a student account, you may want to compare what is on offer and consider switching banks if you can find a better account. The Money Saving Expert website compares different student bank accounts and gives information and top tips on opening and running a student account.
The Save the Student website also has a comparison of student bank accounts and advice on how to choose the best account for you.
Make sure that you keep a close check on your account so that you do not exceed your agreed overdraft limit, as this can incur large penalty charges. Different banks have different terms and so always read the terms and conditions of your overdraft facility so you are aware of what will happen if you exceed your overdraft limit. If you feel that you will need an increased overdraft limit for a period, try and plan ahead and negotiate with your bank so you avoid paying excessive fees and charges for an unauthorised overdraft.
One factor to consider when choosing a student bank account is what will happen to your account when you complete your studies. For more information and a comparison of graduate bank accounts see the Money Saving Expert website.
If you cannot manage to bring your overdraft back within the limit to stop being charged fees, contact a Welfare Adviser who can advise on any possible options for increasing your income