There are many UK banks with different types of account. Which ones should you choose?
- Basic accounts - good for everyday use, but generally do not give a good rate of interest. Will usually provide a bank card for use in cash machines (ATM) and use in shops / internet. An overdraft facility is usually not available - therefore you can only spend what is in the account. Available to International Students.
- Student accounts - Has the same features as the basic account, with the addition of an agreed interest free overdraft facility. Most banks will expect the student loan to be paid into this account.
- Savings accounts - There are many different types of savings accounts. The interest rate will generally be higher, but varies greatly. Some savings accounts will restrict the amount of money which can be withdrawn, and some may need notice of intention to withdraw.
- Other current accounts - These accounts offer the same service as a basic account, but offer additional services. These can include agreed overdraft facilities, insurance, better interest rates, membership to AA. These accounts will have another name e.g 'Gold' 'Premier' 'Platinum'. Some research is recommended if you wish to open one of these.
Choosing a Bank Account
Some research should be done. This can be done by talking with friends, looking on-line or by visiting local banks.
Look at:
- interest rates,
- borrowing options,
- charges,
- location of cashpoint machines.
Free gifts on opening an account may look tempting but good overdraft facilities and interest rates will usually benefit more!
Comparison websites include:
The Money Supermarket
The Money Saving ExpertThe Money Saving Expert
Compare-bank-accounts
Money Facts
Opening a Bank Account
UK Students
Most students will already have at least one bank account. However, you may wish to open another account or change to a different bank.
For detailed information on opening an account go to Money made clear - opening a bank account
International/EU students
Occasionally International / EU students experience problems when trying to open a UK bank account. For up-to-date information go to the UKCISA Banking for International students webpage, or read the International students and banking leaflet produced by the British Banking Association.
If you experience problems, and would like individual and confidential advice, contact the student advice team, stu.adv@reading.ac.uk, tel: 0118 3784100, or visit us in The Hub, in the RUSU building.
Using a Bank Account
How much does a bank account cost?
Generally, if you are in 'credit' (there is money in the account) you will not be charged, and you are not usually charged for any of the services provided by your account. However, if your account becomes 'overdrawn' (your account balance is less than £0) you could incur charges. If you have not agreed an ovedraft with your bank it is highly likely you will recieve charges.
How do I take money out / put money into my bank account?
You can put money into your account through:
- bank transfer
- taking cash / cheque into a branch of your bank along with your bank account details
- on-line banking
You can take money out of your account through:
- cashpoint (ATM) machines - machines attached to banks will not charge, but some machines (usually those in pubs, shops, petrol stations) will charge on average £1.50
- Writing a cheque. for further information go to Cheques the Facts
- Withdrawing money from a bank - you will need either a bank card, or a cheque to do this. Sometime proof of identity is required.
- on-line banking / transfer
- Using your bank card to make payment (in the same way as a credit card). If you do not have the money in your account to cover your spending the transaction may be refused.
- Setting up a Standing Order or Direct Debit which regularly pays someone else
How will I know how much money I have in my bank account?
This can be done in a number of ways:
- for todays balance and/or recent transactions, use a cashpoint machine
- on-line banking will show transactions for many years
- Most bank will send monthly statements to your home address
- For urgent statements visit a branch of your bank and speak with an advisor
- Most banks operate a telephone banking service which will give balance details (they will ask for security details)
Banking on-line
Most banks offer an on-line bank service. This means you can look at your account transactions and transfer money easily. The interest rates offered can be higher with on-line bank accounts.
