You can enjoy effortless budgeting based on how you do your banking. You also stand to save some money if you do get it right. When you have private student loans to consider any savings are a bonus. Below are tips on how to leverage what is on offer.
1: Consider Other Banks
High street banks tend to have dedicated student bank accounts; therefore, shop around to compare the offers. Making a wise choice could help you save as you also enjoy discounts and freebies. You also could find yourself paying less for an emergency loan or if you overspend. Compare the offers available regularly so that you know if switching banks will be worth it even as you try to take advantage of the best deals.
2: Overdraft Beat Freebies Any Day
With an overdraft, the bank will not charge you for overspending. In the case of a student account, you will not pay for requesting an overdraft, and the amount you borrow will not accumulate interest like most regular accounts. And if you do not have savings or the financial backing of your family, the overdraft is likely to avail some fallback money since you also will have saved on interests and fees.
All that is way advantageous than when you are offered freebies like gift vouchers and railcards. Remember to stick to the terms if you want to benefit from the overdraft. Keep to the limit and settle the loan on time.
3: Have More Than One Bank Account
Most student accounts have some extra perks though you can only utilize one at a time. Nevertheless, that does not mean you cannot open another bank account. For instance, you can have your wages and student loan in the same account, then transfer money to another account for direct debits and bills. You could have your saving in a different bank that offers cash bonuses or has better interest rates. Do not be afraid to mix-and-match if you are confident you can meet all the terms and conditions.
4: Stockpile Cash Using Lazy Saving
Lazy saving meaning you do not struggle much when trying to put money aside for a rainy day. It is all about auto-saving and is an easy way of saving for emergencies, holidays, or anything that might need some cash in the future.
You can set up your bank account or a savings app for handling this automatically. Consider rounding up the loose change or run the save-the-change function on your app whenever you use your debit card. It will round up the money to the nearest pound and move those few extra pennies into the savings account.
5: Use Credit Cards Prudently
Credit cards are convenient when you need money, but you can find yourself spending more than you should if you are not attentive. People are quick to get credit cards since it is one of the quickest and cheapest means of borrowing, especially with 0% credit cards. Such cards mirror student overdrafts in the way the holder will not pay interest on the money borrowed.
Some credit cards offer cashback on spending, and if you have one like this, you can end up with a decent refund at the close of the year. However, keep in mind that you will benefit from using credit cards if you adhere to the terms and conditions. And that they will cost you more once the zero-interest period expires and you start paying interest, penalty charges, and other fees.