The Differences between Regular Current Accounts and Student Accounts?
June 29th, 2009
Are you considering opening a bank account and wondering about the differences between a current account and a student account?A current account is one step above a basic bank account, which provides a simple location to keep money. With a basic account you can arrange for automatic payments into the account from your salary, pension or other benefits. You can also arrange automatic debits to regularly pay off your bills. These accounts usually offer debit cards for buying items and getting cash-back.Current accounts offer more services than basic accounts. You will receive a cheque book with a current account along with a cheque guarantee card. Your debit card may allow payments without first checking your account. You can arrange for standing orders in which someone receives regular payments from your account. With current accounts you also receive Banker’s automated clearing service (BACS) that allows you to receive payments directly into your account. You can also make one-off payments into someone else’s account. Unlike basic accounts, current accounts allow you to over draw money up to a certain limit with charges. You will usually have to arrange the overdraft facility in advance.Student AccountsA student account is designed specifically for those pursuing education full-time. You must show that you are a student to apply for such accounts.The student account will often offer lower interest rates on loans, and provide other benefits meant to assist students. There may be advisors to help students manage their accounts. Since students normally have limited income, the accounts will have provide reduced rates, or in some cases free basic services. Student accounts often come with incentives specifically designed for students such as free rail passes.
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