Top tips on student bank accounts: don't be dazzled by the deals

The student year 2012-13 saw the biggest overhaul in a generation on tuition fees and how students fund their higher education.  Combined with the rising cost of living, it's now even more important for students to think carefully about which student bank account to choose.

We've taken a look at the student bank accounts currently on offer.   The key to choosing the right account is not to be side-tracked by special offers.  The most valuable feature of a student account is the interest-free and fee-free overdraft facility and it's this students should concentrate on when choosing an account.

Teresa Fritz, Consumer Finance Expert at MoneyVista, said: "Borrowing is a fact of life for most students.  With the average student starting university in 2012 expected to leave college with debts of around £53,400, finding the best source of student borrowing is essential.  The main source of lending for students is obviously the student loan system, but most students need further help, and the cheapest way forward is with an interest-free overdraft.  However we urge students to think carefully about which student account is right for them."

MoneyVista's top tips for choosing the right student account:

1. Check what size of interest and fee-free overdraft is available. You might not get the maximum amount advertised.

2. Decide what type of organisation you want to bank with. Most student accounts are offered by the big banks but there are some other options such as The Co-operative Bank which is run on behalf of its members and has an ethical policy.

3. Check what fees and interest you'll pay if you exceed your interest-free and fee-free overdraft. Some let you apply for an arranged overdraft at a reasonable interest rate. Others tip you straight into unauthorised overdraft with hefty fees to pay.

4. Look at the other services they offer and decide if these are important to you - for example, alerts when you're reaching your overdraft limit, budgeting tools, optional student credit cards and mobile banking apps.

5. If you'd like access to a branch, check out which ones are available on campus or nearby.

6. Check the eligibility requirements. Most banks require you to use your account as your main account. Some require you to make a set number of transactions. Others have requirements about how much you should pay in to your account and how often.