uSwitch.com: Don’t be lured by student account freebies
Price comparison site uSwitch.com has done its homework on student accounts, and found that choosing the wrong account could cost students up to £75 per year.
Totted up for all students, that’s equivalent to potential unnecessary interest payments of £30 million.
Banks that offer freebies – such as railcards, YHA membership, or commission free currency – often charge interest on student overdrafts, uSwitch.com warned.
“With banks fiercely competitive on winning student custom, young people are lured in with the potential to access huge overdrafts and gain impressive freebies,” said Louise Bond, uSwitch.com personal finance expert.
“However, it is important for students to not get sucked in by these immediate perks, and examine all aspects of the account, particularly the accompanying fees, charges and interest rates.”
Students who fail to research accounts with an interest-free overdraft could find themselves paying up to 9.9% on their authorised overdraft, and up to 29.99% on unauthorised overdrafts, uSwitch.com said.