BANKING

As a student it is likely that you are going to need an overdraft facility during your time at the University of Bolton. Therefore, it is vital to think carefully about where you are going to open an account. Many students simply open a student account with their existing bank and do not shop around for the best deal. The things you should consider include:
 

The amount of overdraft you will be eligible for

Any charges which you occur with the account

What happens if you go overdrawn

What happens when you graduate

 
These days banks are highly competitive, offering generous facilities to students especially interest free overdrafts and credit cards. But beware of the pitfalls, misuse any of its facilities or failure to stick to your agreement, then the bank can demand the whole lot back, and some may even threaten to close your account or take legal action.

Current Student Accounts

This is the commonest type of account offered to students which has a cheque and switch facility attached.  Your eligibility will depend on the set criteria of the bank, which can vary from bank to bank.  Usually, the criteria will mean being registered on a designated under-graduate course, satisfying the residency conditions and passing a credit search.

What can I do if I am refused a student current account?

If you do not pass the bank's set criteria, usually the credit search, then you may be offered an ordinary savings account instead. Students who will have this type of account are students with existing debts who have a County Court Judgement entered against them, some students over 54 and students who have failed to provide relevant information for the current account.

If you are refused a savings account then you should contact the Post Office to open a Post Office Savings Account. Contact the Advice Unit if you need more information on 01204 900850.

Unauthorised Overdraft

Many students will be offered an interest free overdraft with their account, which has been specially arranged for them by the bank.

However, an unauthorised overdraft is highly likely to be subject to charges such as increased administrative charges levied when letters are sent to you about your overdraft, even if the unauthorised balance is very small.  It is not uncommon for a bank to charge £12 a letter and £25 in charges with extra charges every time you use your card through a cash machine.

This can soon add up to a substantial amount with little prospect of getting the charges waived if the student failed to act quickly. In some cases the Advice Unit can help write off charges where an unreasonable charge has been made or were the student has acted appropriately.

If you are charged by your bank and need further guidance, you should contact the Advice Unit as soon as possible who will then contact your bank regarding your account.  However, the best way to avoid charges is to arrange an approved extension to your overdraft facility.  In some cases you may be required to complete an income and expenditure form.  Speak to the Advice Unit if you need help.

Charges

It is perfectly legal for banks and building societies to charge for the use of certain services. These must be set out in the terms and conditions, and details of the charges must be given when an account is opened, before any charges are made or whenever you request them.

The British Bankers Association (BBA) is the organisation, which produces the Banking Code of Practice.  Information sheets called 'bank facts' are available from their website at www.bba.org.uk which includes information on bank charges, interest and tax on savings.

If your account has been charged and you are not clear about why it has been made then you should ask for a breakdown and explanation of the charge.  If you are still not satisfied and feel the charge has been applied incorrectly, then you should contact the Advice Unit who will help you to complain and assist you to take the matter further.