Every year thousands of fresh faced young people arrive at university with a sense of achievement, nerves and excitement. For many it is often the first time they have been away from home for more than a couple of weeks and it can be daunting to think you are now your own keeper. The years of preparation to get here have finally come to fruition.
One thing that is very important for students and it is often something they have never had before is a bank account. The banks know there is this influx into the market of inexperienced young people and they compete to get their business. This can make opening an account confusing and difficult as often banks offer incentives in the form of free gifts.
Many university freshers will be targeted by banks offering free gifts, but they may be lured into choosing the wrong bank account, new research claims. It is estimated that the false economy offered to students by many banks could cost in excess of £630 claims the Halifax.
The benefits gained from the free gifts, such as iPod shuffles or mp4 players are offset by smaller interest-free overdrafts, which all-too-often acts as a lifesaver for hard-up students.
The managing director of HBOS banking and savings advised that when in debt, students must look "to borrow money as cheaply as possible".
He continued: "That is why it's important not to be taken in by the lure of free gifts and to concentrate instead on the interest free overdraft limits which are on offer."
Over the course of their time at university, students are often forced to borrow using credit cards or other personal loans if they slip into debt and these are usually more costly than having a larger interest free overdraft.
As with all money issues it pays to do your research and look more closely into what each bank is actually offering you.
If you would like to know more about bank accounts why not ask AnswerBank Business and Finance.