Five Questions About: Student accounts

I've got another bank. Why should I get a student account?

Two words – free overdraft. Most standard accounts will charge you when you go into the red. Not so the student account.

I'm off to uni this year, when should I get a student account?

Now. Chances are, this is the first time you'll be responsible for your own finances and you'll need to have everything in place well in advance.

What deals are on offer?

The major benefit is the interest-free overdraft. Then there are cashback incentives, free railcards, discount cards, even DVDs when you open an account. The banks hope that by getting you in young, you become a long-term customer.

How do I pick the best one for me?

If you're expecting to go into the red, you may get the greatest benefit from the largest overdraft rather than the best freebie. The Co-op offers the highest guaranteed overdrafts (£1,400 for the first year). As for freebies, the NatWest four-year 16-25 travel card, worth £100 and offering a third off train travel during your course, could save you a fortune, but you must be an existing customer. A different offer applies for RBS customers in Scotland.

Anything I need to be careful of?

Don't go over your overdraft limit – you'll get hit with significant charges.