An Alternative Current Account for Students

Eighty seven percent of first-year undergraduates are aged 18-24, according to the National Union of Students . As the majority of students are young people, they may be moving away from home for the first time and getting to grips with managing finances for themselves. With a limited and possibly irregular income and the cost of living expenses, this can be difficult.

A managed bank account is a current account designed to take away much of the worry of managing your money. thinkbanking offer this kind of bank account. It is similar to other current accounts, only it is designed to help people avoid debt – and avoid the need to get into debt. Rather than an overdraft facility, it comes with a system designed to help ensure customers never miss essential bill payments, or receive unexpected bank charges.

You could get a UK student account with an overdraft, but you should consider whether you really need this credit and whether you will be able to pay that money back. Bear in mind that some overdrafts also charge interest.

thinkbanking charge a monthly fee, which can work out cheaper than unexpected bank charges, depending on how often you get them and how much they cost. (There’s a set-up cost of £25 then a monthly fee of £14.50 – or £30 and £19.50 for a joint account.)

Another major difference to a standard current account is that this bank account is split in two. A team of Money Managers ensure all essential bills (rent, utilities, etc.) are paid from the ‘Salaries’ account before transferring the rest to the ‘Card’ account, for worry-free spending. Students who would rather spend time studying, or at the Student Union, can take advantage of an account that is managed for them.

Online banking is another benefit, as well as SMS services such as updates and balance enquiries. The only criteria to open this current account are that you are over 18 and can prove your address. Overseas students who would like this UK current account will be approved on a case-by-case basis – generally it is necessary to be resident in the UK for 6 months out of every year.

According to the NUS, one in five students leave university because of reasons including debt . It’s a good idea to get into good habits and avoid debt with the help of a Money Manager, at a time when you’re probably more concerned about meeting people, meeting deadlines and perhaps juggling part-time work and the demands of your course.