Choosing banking products

The Moneyfacts site offers detailed comparisons of a range of products including Basic, Current, Student and Graduate accounts. Similar information can also be found on the Moneysupermarket.com site.

When choosing a bank account, you may find it useful to consider:

• Interest on money in your account if you are in credit (no overdraft) - this will increase your savings.
  
  
• The amount of any interest-free overdraft (how much overdraft you can have without getting permission from the bank and without paying any extra interest).
  
  
• The amount you may be allowed for authorised overdrafts (these are overdrafts and loans that you must discuss with the bank first and there will be monthly charges). If you know that you will have an overdraft before it happens, it will probably save you extra charges if you discuss it with your bank.
  
  
• The charges on authorised overdrafts & loans - these vary from bank to bank.
  
  
• The charges on unauthorised overdrafts and loans. These are overdrafts where you have not received permission from your bank in advance & the charges are much higher.
  
  
• The qualifying period after graduation (to stay in the same account, which will probably have better rates than other accounts). Many of the banks now have an option to move to a graduate account which may also have better terms of interest or charges than an ordinary account, especially if you are still paying off an overdraft or loan.

Although incentives are useful, good interest rates and low charges are usually more helpful in the long term. Most people find it difficult to change banks once they've opened an account, though as bank account rates often change, you may find that it is better to compare banks & review your account every year or so.

If there is only one bank near you, check out their rates with other banks and you may find that telephone or Internet banking with better rates suits you better. The other option may be to open a second account, although this may make managing your money more difficult. Some student accounts may expect you to pay in any student loan to their account.

Other issues you may want to consider when choosing a bank are:

1. Availability

• How easy is it to find ATMs (automated telling machines or cashpoints) or branches?
  
  
• Is there a free or local rate telephone banking service?
  
  
• Do you want or need online banking services?
  
  
• Is there Saturday or late night opening?
  
  
• How & where can you deposit cash and cheques

2. Services

• Does your local branch have a specialist advice service?
  
  
• Are there any charges if you use another bank's cashpoint?
  
  
• Can you set up standing orders & direct debits for you to make regular payments?
  
  
• What other services are offered, e.g. ethical approach to banking, share dealing, small business advice etc.?

There are some useful leaflets on understanding and opening bank accounts, banking abroad, borrowing money and managing finances, including sections on banking for children, teenagers and small businesses, from the British Bankers' Association.

Disability Rights

Banks and Building Societies must comply with the Disability Discrimination Act and should not now discriminate against disabled people, in their policies, procedures and practices. By October 2004, they must make reasonable adjustments to buildings, fixtures and fittings to allow for access for disabled people. More information and a code of practice is available at the Disability Rights Commission or from local disabled people's access groups.

If you would like information on signing your name, the British Bankers' Association have produced a leaflet. However, the leaflet does not clearly explain that banks are now legally responsible for making reasonable adjustments for disabled people, so make a complaint if you are not provided with reasonable access requirements.

If you are an international student, check:

• what arrangements there are for transferring money from your home country. If you wish to bring money into the UK with you, the British Bankers' Association recommends asking your bank abroad to issue a cheque drawn in sterling on a London bank. You will need to bring with you proof of your identity (ID) and proof or your address. Deposits can also be made from abroad.
  
  
• how much will it cost?
  
  
• what documents are required by by the bank before you can open an account? (e.g. your passport, letter from your university, college or training course confirming that you are a student, a document confirming your address in the UK, such as a contract or letter from the university or college, tenancy agreement or student accommodation contract and information about any bank accounts in your home country, such as bank statements).
  

Some banks may not accept international students, so try other ones in your area and ask advice from your student welfare, NUS or student services advisers.

Using a bank account, from the FSA, explains how to open a bank account, run a bank account, how to read bank statements & other advice, and includes very useful examples & images to explain how to use banking services.

UKCOSA provides guidance notes on opening and running a bank account in the UK with useful information about what to bring with you and and explanation of how bank accounts work.

The British Bankers' Association provides advice on opening a basic bank account but you may be able to open other accounts. This will at the discretion of the banks.

They also provide advice on how to use a bank account if you have difficulty signing your name.

The University of Sheffield recommends that if a bank refuses to open an account for you, ask for the reason. If an individual employee should state that you cannot open an account because you come from overseas or because of your nationality, ask for the employee's name and report this to the manager, and/or to the student advisors at the university or college. This procedure is recommended by the banks themselves.

If you have been refused credit:

You may be able to open a basic bank account. There are some good suggestions for dealing with the situation at TheSite. Also look at    Experian and at Equifax for information on how credit rating and referencing works.

Always try to discuss any potential problems with your bank or with a money adviser. If you get into any difficulties, contact a money adviser at university or college, Local Authority or Citizens Advice Bureau as soon as possible. There are also other voluntary organisations with trained money advisers that may help. They will help you decide which are the most important debts and work with you to help you cope with the situation.

You should be able to get help without having to pay any extra fees or percentages to a commercial organisation or loan company. For more information online on money management, have a look at our finance section or our advice section to find advisers in your area.

If you are at college or university and have an emergency, don't forget about Access and Learner Support Funds, Hardship Funds and charitable trusts. Contact your student welfare, student support or NUS advisers for advice.

Loan Repayments

Studentmoney has loan repayment calculators for student loans & for other loans which will give you an estimate for your monthly repayment.

Online calculators & tutorials & advice on money from NIACE

NIACE has a site Money Matters to Me which includes a clear interactive tutorial on how to use a cash machine (ATM) and also a range of interactive calculators for budgets, savings, loans, mortgages, repayments & pensions.