Money hacks - How to choose a student bank account

Choosing the right student bank account won't magic away your money worries but it could help to provide a buffer zone when your balance creeps into the red, and perhaps some helpful perks, too.

- Sandra Haurant

The must-have overdraft

The biggest difference between a student bank account and a standard current account is the overdraft, says Tom Allingham, a spokesperson for Save the Student.

"Usually you're charged interest for using this facility, but with a student bank account, you'll get an interest-free allowance to act as a buffer if your balance drops below zero. Most student accounts will have an interest-free overdraft of at least £1,000 but the maximum allowance may not be available until your second or third year, and you may have to apply for higher amounts to reach the cap."

For anyone who is likely to require credit - most students - it is an extremely useful, perhaps even essential, facility.

"Make sure you look for the biggest possible [interest-free] overdraft amount on offer, as it will help when managing your student finances, allowing you the flexibility to go into the red without a financial penalty and avoid other more expensive forms of debt, such as loans, credit cards or standard overdrafts," says Kara Gammell, a personal finance expert at MoneySuperMarket.

However, it is not only a question of trying to find the largest overdraft, says Sarah Coles, a senior personal finance analyst at the investment platform Hargreaves Lansdown: "They work in different ways, and there are different levels of overdraft on offer, so you need to decide what's most important to you and find the account offering what you need."