Do you think any fintech banks will offer student accounts any time soon? I feel like it would make a lot of sense, given how many people I know my age use Monzo/Revolut/Starling. Only one available right now with a decent app is NatWest.
Based on this, why do they need to?
Student accounts are just giving out chunky overdrafts and train tickets aren’t they?
Probably not, I feel like student accounts are designed mainly to entice people to open an account with them and bank on the fact most people don’t tend to switch (excuse the pun).
And like you said, a lot of people your age are already with a fintech bank… so they don’t need to spend money on another product to entice that age range in.
Personally don’t agree with them.
Monzo provides a banking service, yes student life is hard, but so is everyone else’s.
Never understood why students get so much in terms of perks and benefits.
Over 2.8million students enrolled for 2021/2022, that’s a lot of people who banks want to be able to get as customers.
Plenty of people get extra benefits. It isn’t about life being hard (however, student life is getting much harder compared to previous years with everything getting more expensive, especially rents, and student loans barely increasing).
Student accounts are a way to get people to open an account and hope they never switch away, which will work in most cases.
Because they’ll take an age to repay their borrowing?
It must work for banks to continue offering in such ways, but I still don’t agree with it.
By not specifically marketing student accounts (which, due to the interest–free overdraft usually stipulate you can’t hold another with a different bank) Monzo and Starling actually give you the best of both worlds.
Why not open a student account at a high street bank, but then spend and budget through the superior app of Monzo or Starling? You might end up using the ‘free’ overdraft less and budgeting better.
Kinda what I do. I have the santander student account but use other accounts for everyday spending, and my santander account for any big purchases.
I’m rarely in my overdraft, but it’s a nice to have and I am fully aware that I need to stay on top of if for when I finish uni. I do also have some of my overdraft in a savings account currently so I can actually get some interest.
Be careful doing that especially if it’s clear you’re using the interest free overdraft to earn interest
I doubt the intended purpose of a £1000-£3000 interest free overdraft is for the customer to earn money from it. It’s there to save you incase you run out of money as a student
Tradionally people kept their account with the same bank for life. There was loyalty both by banks and customers. Over time there is the switching mentality fuelled by generous incentives. Students today will be unlikely to remain with their first bank therefore there’s no Incentives for banks to attract their custom. Personally I think great service counts the most but that’s just my preference.
It’s not exactly something that isn’t advertised on various saving money sites, and I’ve never heard of a bank stopping someone do it.
They don’t care and how would they know?
I doubt NatWest intended for me to buy a plasma tv, but that’s what I did!
Personally, I feel like it’s abuse of a facility provided to students for the greater good (ie if you’re stuck and need help, it’s here). And everyone can do as they please with their bank accounts, so each to their own. And this is coming from someone who recently finished uni and had a student account. I’ll always be grateful for the facility they provided and sure did help when I needed it.
Banks are hardly working for the greater good. I really don’t care if people “abuse” a system designes to bride young people into banking and staying with them.
But why the need for caution? What will the bank do if you withdraw your overdraft and stick it in a savings account?
Rub their hands hoping they never pay it back and get 40%.