Student current account holders 'could be losing out on £30m'

www.moneynews.co.uk > Banking > Student current account holders 'could be losing out on £30m'

Student current account holders 'could be losing out on £30m'

Tue 11th Aug 2009

Student current account holders in the UK could be missing out on as much as £30 million collectively every year by not shopping around for the best financial package for them, it has been discovered.

New research conducted by uSwitch.com has found that students who do not take out the accounts that are most suitable for their needs could end up with £75 in interest payments each.

The study found that, although some banks entice students with offers of free NUS and travel and YHA cards, they could be hiding charges for overdrafts.

According to the report, the average authorised rate on a student account in the UK is 8.05 per cent EAR - although three banks were found to be charging as much as 9.9 per cent.

Personal finance expert at uSwitch.com Louise Bond stated: "It is important for students to not get sucked in by […] immediate perks and examine all aspects of the account, particularly the accompanying fees, charges and interest rates."

Last month, Barclays unveiled its new student bank account in time for the September academic term.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'