UK Students Should Choose Overdraft-free Bank Accounts

Experts of an online comparison source, Moneyfacts, published a report, in which they recommend UK students to avoid bank accounts that offer freebies. Instead, youngsters are urged to choose those deals that allow for the biggest free overdraft and do not feature mandatory payment protection insurance.

Commenting on the available market offers, Mrs. Michelle Slade of Moneyfacts said that even though discounts and free gifts might seem tempting for students, the major thing they should pay attention to are overdraft charges.

Students who want to take a grown-up approach to the selection of a bank account should consider Halifax in the first place. This lender offers interest-free overdraft at £3,000 for 5 years, whereas others only have it at £1,000-2,000.

Mrs. Slade reminds that the overdraft limit is typically calculated on the basis of the credit score and might be lower if the student has no credit history. Also, youngsters are urged to regularly check their bank account online to know the balance.