I'm about to start university and I'm shopping around for the perfect current account for me. I'm looking for a good interest rate but also at extras (e.g. some do a student railcard etc). Lots of people keep telling me to look for good overdraft offers, although I'd rather not go into my overdraft to be honest. Is going into your overdraft inevitable as a student or can you avoid it by spending as wisely as possible?

Anyway, my main question goes out to people with personal experience of student current accounts - What banks would you recommend I have, taking into account what extras they give as well?

Thanks!

My advice is to go to a building society rather than a bank as they generally have better relationships with their customers, in my view. You should also avoid those who give out freebies, or at least don't allow the freebie to sway your decision as the better organisations don't need to "buy" customers but it's the only way that the bad ones get customers.

You should firstly look for an account with zero fees. Some accounts offer great interest (or low interest on overdrafts) but then take it back with monthly fees.

As to whether you will need to borrow money it all depends how frugal you can be, what help is coming from parents and, more than anything, on what area you are going to live in. In some parts of the country you can rent a 2 bed terrace house within cycling distance of uni for £300 (plus bills) per month. In London, things are much more expensive. Your university or students union should advise regarding the accommodation situation.

You should certainly look at borrowing from the Students Loan Company before approaching a bank or building society for finance as their loans are at subsidised interest rates and favourable repayment terms. Again, your students union will have all the details. If you anticipate the need for finance, you should consider applying for the maximum each year. The web site is www.slc.co.uk. Taking out commercial finance can lead to problems and it should be avoided if there are other options.

Thanks very much for your advice!

I'm already with nationwide, but unfortunately they don't offer a "student" bank account - would you say that getting a normal current account with them is advisable or should I take advantage of other building societies' and bank's good offers for students? (I know it's all to get us hooked ready for later life as I'm guessing statistically you're less likely to leave).

I'd say I'm extremely frugal, have generous but not particularly wealthy parents and am luckily staying in pretty cheap accommodation, plus I cycle everywhere :) - So I'm guessing I don't have to worry about overdrafts too much.

I have the maximum student loan, plus a couple of tasty grants and a bursary to help out so there's no need to worry about borrowing from other loan companies, but thankyou for the information anyway!

I'f you've already got a Nationwide account, you may as well stick with that. If there are decent offers that you fancy you can give them a go but, in my view, you should not sign up for anything that involves closing your existing account.