Bank accounts

[Inland Pirate]

Starting to set stuff up for September, and I was wondering if anyone had strong feelings about the usefulness of a particular bank or style of account during their cadetship??

Thanks!

[Midge]

Well you've stepped into my profession now!
Might find some useful information here.

http://www.moneysavingexpert.com/students/Student-bank-account

Depending on circumstances you might find a railcard useful, some companies expect you to use the for rail travel and reimburse on that basis, but they often pay for the cost of purchase.

Just beware credit scoring, overdrafts and spending more than you get in, it's that simple really. Learn to budget set yourself an amount you can spend a week and stick to it.
Its very easy to forget some of the day to day things that you find automatically appear in your home, that you will have to pay for by yourself. If it's the first time away from home there are new temptations to go out more as there is not the mum or dad saying 'out again are you where do you find the money?'
Or being tempted to splash out on lots of small things that add up and then you find you can't manage to live until pay day. Do not be tempted to use overdrafts unless it's for a real emergency.
try and save something every month no matter how little it gets you into a habit.
Do not use pay day loans please.

If this is all stuff you know the great but if not I hope it's useful.
Try to avoid getting a government student loan too they do have to be paid back, as officers salaries are quite high you are unlikely to avoid this, unlike some students whose salary is quite low for many years.

Loan rates will go up and that's likely to be sooner rather than later, I can remember rates at over 12% and it was not that long ago.

[Rootsea]

I believe the HSBC Student Account is pretty good. 0% interest on overdrafts, rubbish (but not too rubbish) interest rate and so on.

I'd recommended starting a Cash ISA as soon as you can. When you put money in an ISA you don't have to pay any tax on it and - due to the decent interest rates - you tend to end up with a solid amount of money at the end of each year.

[Inland Pirate]

Thanks both!

Are cadets eligible for student accounts? Is is just a case of taking a letter from Warsash?

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[Rootsea]

Thanks both!

Are cadets eligible for student accounts? Is is just a case of taking a letter from Warsash?

Sent from my XT1032 using Tapatalk

Yup. If the bank asks questions, point out that Warsash is part of Southampton Solent University.

Take the letter from your company offering you a place. If you have anything from WMA with their letterhead on it, then take that too.

[GuinnessMan]

Thanks both!

Are cadets eligible for student accounts? Is is just a case of taking a letter from Warsash?

Sent from my XT1032 using Tapatalk

I had to took a letter to the bank from college when I went for my student account. They even gave me 100 squid just for joining their bank....(Halifax)

[Midge]

http://www.hsbc.co.uk/1/2/current-accounts/student-bank-account/open-bank-account?HBEU_dyn_lnk=CurrentAccount_StudentBankAccount_HowToApply_Btn

All on their website, but as mentioned a letter form the university is fine, unless you have applied through UCAS. They require the unconditional acceptance letter in that case.
They are quite strict on it all they love paperwork and ticking boxes!

if you already have a back account you should be able to move it within a week.

[Sarah]

Santander student account has no overdraft charge but if I were you I'd avoid overdrafts all together unless it's an emergency. I've had mine 5 years and not managed to get anywhere close to being out of it. Bring on sea phase!

[CharlieDelta]

Midge's post definitely goes down the right lines. Budget, and stick to it. It's very easy, especially if you've come from a higher paying job, to lose control of money during the cadetship.

[samsezhi]

Hi,
I have a student account with Natwest and a sizeable free overdraft. I live in my overdraft but have all my cash in my cash ISA as it earns more money in there (not as much as it did some years ago though). Bear in mind that I think you are only eligible for a student account if you are on the FD course and not the HNC/D as my friend recently found out. The other thing to take into account is the places you are likely to be going. If travelling abroad I would recommend a credit card which is set up to pay off the balance every month. Not only does this build your credit score but is much safer than using your debit card in the dodgy ports you are likely to go. I took 2 with me, one to use as I would my debit card and one for emergencies. You have to shop around for the best deal but I found the Halifax 'Clarity' Credit card very good as it has zero charges on drawing cash from ATMs and on foreign currency. Also when applying you need to put 'employed' on the application.

[samsezhi]

Also, when going away for phase 2/4 you may need to tell your bank that you are going abroad to avoid to avoid standing outside a cash machine at midnight in taiwan making an expensive call to the bank in the uk.

[OldSalt]

Lloyds Bank have a good student account. They increase your free overdraft limit each year. After the first year the bank did ask what the extra overdaft was going to be usef for? "It going straight in an ISA" was the reply. Free overdraft but earning interst on the ISA with the bank's money... The expression on the bank official's face will live with me for a long time.

Student loans do make life a little more comfortable for you. Yes you have to pay it back. It is low interest and you have to have a taxable income. So if you are not paying tax you are not being chased for the loan.

I would recommend you give say a parent access to your bank accounts. If someting happens to your bank account whilst you are at sea i.e. mysterious items appearing in your account, you will probably not be in a position to deal with it. Internet banking access is one thing but if something goes wrong the bank will only deal with the other person if they are registered. The only way you can register someone is using a bank terminal in a branch.

[Inland Pirate]

Thanks everyone

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[Midge]

With HSBC you can select using online banking the countries you are visiting so avoids the Taiwan problem. Though with ships that don't have a schedule give a parent access to your online banking so they can amend as necessary, but it does mean you have to let them know where you are likely to be going .Or else we are left to marine tracking to give us a clue .
Good idea with a credit card does limit the problem if you get scammed. You can give someone authority to act on your account just check with your bank what they will require.
Love the ISA idea, it's called stoozing, good bit of thinking there, sadly we can't have ISA's though or he would have done it. Some do it with student loans that they don't need.

[samsezhi]

I recently added my partner to access my account with a 3rd party mandate from the bank just in case. If you can live without the student loan, I would defiantly not get one. I have one from University and the interest is low but still horrible. I die a little inside every time they remind me I have one.