According to analysis, students looking for a bank account may find they are being offered less upfront cash this year.
Defaqto’s financial information experts have found that cash incentives have been a huge draw for students over the years, having been around £ 100 in the past. However, this year the amounts on offer are lower and only a handful of the major providers offer any cash.
The highest amount among the vendors studied is £ 80 cashback from HSBC UK – the offer also includes a choice of a £ 20 Uber Eats voucher or a year of unlimited next day delivery with Asos Premier.
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NatWest and RBS are offering £ 50 upfront cash this year, and several banks are offering cashback at certain retailers when students shop there, Defaqto said.
It added that the TSB’s student account offers 5% on balances up to £ 500, while the Halifax student account offers 0.1% interest.
Student accounts usually also offer interest-free overdrafts. The amount offered is partially staggered so that it increases over the term of the account.
Katie Brain, Banking Specialist at Defaqto, said, “Banks know that graduates are likely to be good customers and may earn higher salaries after graduation, and that’s why student account incentives are so generous.
“Managing money when you first leave home can be daunting and it’s important to have a bank account that suits the student.
“For anyone who signs up, think about how they can access your account and weigh the benefits against any fees that are likely to apply. University life can be expensive and it’s important to get the most out of every pound you have. “
While money management can be intimidating, Thomas Allder, Customer Director at Vanquis, knows that simple preparation can give students more control.
He shares his top six tips to help students stay on track this year.
Take the time to learn about your finances
Often the students do not have to think about their finances in detail before starting their studies. Take note that this is no longer the case and familiarize yourself with your bank account.
Knowledge is really power when it comes to money management. So make it your job to understand all incoming payments and outgoing direct debits.
Budget for the term – and stick with it
When that first student loan lands in your bank account, it can be tempting to spend money like there’s no tomorrow.
Your budget should take into account your loan and any savings or income you have, minus your tuition, rent, cell phone bills, and other regular major expenses.
The remaining balance must be enough to pay for food, transportation, and fun for the rest of the semester. You can do this easily by creating a section in your Notes app on your phone, or even by creating a spreadsheet that you update regularly.
Take advantage of the student discounts
One of the most important advantages of being a student is that many brands offer generous discounts on things like clothing, food and drink, technology, banking, and more. Search online for “Student Discounts” and see what offers are available before paying full price.
The same rules apply to all things outside of peak hours – with offers in gyms, restaurants and when traveling by bus or train at quieter times.
Sense check your subscriptions
The data shows that most Britons pay for three or more subscriptions per month. If you fall into this category, consider whether they are all really vital or whether you can save yourself a few pounds by downscaling them.
Big brands like Netflix and Spotify often offer group subscriptions, so it might be worth checking out if you can meet up with new friends or roommates.
Embrace all second hand things
An increasingly popular way to save money without missing out on much-needed fashion, technology, and even textbooks is through second-hand shopping. Not only can you feel great about budgeting, but you also have the added benefit of reducing your carbon footprint.
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Start by building your credit score
Many freshmen have limited credit history. Now is the time to understand what you can do to create this. Download an app from one of the approved credit bureaus (like ClearScore or Experian) to keep track of your financial activity and get suggestions on how to establish your credit score.
If you want to look at a credit card because you are running out of cash or you don’t have access to money in a bank account, make sure you understand how they work and pay the balance back in full each month to avoid fees .
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