Beat the credit crunch with the right student account

24 September 2008 / by Daniela Gieseler
Before the start of the new term, students are increasingly conscious of the effect the credit crunch has on the amount of money in their bank accounts, new research from Abbey Banking reveals.

Half of students said they were planning to raise extra money by selling their possessions on the internet in order to help pay for every day expenses, while only 22 per cent of the general public said they would be prepared to do so.

At the top of the list of things to go because of a lack of cash are non-essential items such as CDs, DVDs and clothes. Around 40 per cent of students said they would cut down on going out for drinks and socialising with their mates, while 34 per said they plan to eat out less.

Bringing packed lunches instead of buying prepared food at university is another opportunity to cut down, as 32 per cent of students said they were planning to bring their own; 14 per cent of respondents said they would be taking on second jobs to help them through university, and nine per cent intend to use their car less.

A great majority are also taking extra care to make the most of offers and discounts when shopping or taking out new financial products such as current and savings accounts. Students should pay particular attention to interest-free overdrafts and extra benefits on their student bank accounts.

"The majority of students living on a fixed income may find the coming months tough with the price of essential goods and services such as food and energy continuing to rise," Steve Shore, director of banking at Abbey, commented.

He recommended: "Students more than ever will need to set themselves a strict budget and should ensure that they are shopping around for the best deals, this includes financial products such as the bank account they use."

For students who feel the squeeze, it is definitely worth shopping around as many bank accounts offer extra benefits. For instance, the Abbey Student Account offers a £50 cash gift, an interest rate of four per cent for balances up to £500, and an interest free overdraft which increases up to £2,000.

© Fair Investment Company Ltd