Top tips for students
Before all the fun and games of Fresher's week start, Defaqto have offered some essential tips to help students stay on track throughout the year.Contents Insurance
For many students, contents insurance cover is usually provided under their parent's household insurance but be aware there are specific limits in the amount of cover that is provided. For most policies, cover for theft of contents must involve "forcible or violent entry to or exit from a building". This is particularly relevant to those in Student halls where any number of people have access to and from the building. If your room was left unlocked whilst popping to communal kitchen or bathrooms and in this time your possessions were stolen then cover would not be provided by such policies.
There are however a number of ‘Student possessions' policies available in the market through companies such as Endsleigh and Cover4Students.com, and these policies are specifically designed for students in various types of accommodation.
Motor Insurance
If you are planning to take your car to university then you must inform your insurer of your new address and give details on where the car will be kept, as most car insurance policy conditions state that if there is a change in the risk then the policyholder must notify the insurer, as failing to do so could mean that the insurance cover may not be valid and claims may not be met.
Mike Powell, Consultant for General Insurance at Defaqto says: "If you are intending to cover your contents whilst you are at university under your parent's household insurance policy, make sure that the cover is adequate for your needs, and if not, look to purchase a separate student possessions policy. You should also make sure that your car insurer is informed of your new address and the parking situation, as failing to do so, could result in your insurer refusing to deal with any claim made under the policy."
Student overdrafts
"Interest free overdrafts are the key item to focus on when selecting from the array of accounts available. Many students will live off overdrafts and loans so it makes sense to minimise the cost" says David Black, Principal Consultant of Banking at Defaqto.
In your first year of university there are interest free overdrafts available of up to £3000 from Bank of Scotland and the Halifax.
Student account incentives
Various incentives are offered by some of the student current accounts (see attached list) and these include railcards, travel insurance, cinema tickets, discounts and cash. Although all these things sound great the majority of students will only ever open a student account once.
"The railcards offered by NatWest and the Royal Bank of Scotland look to be the pick of the incentives for all those who are likely to travel by rail. Whilst £100 cash deposit sounds great, a young person's railcard could save you much more than £100." says David Black.
Look for incentives that will save you money in the long run.
Overdraft charges
As the overdraft will be the lifeline for many students, it is not uncommon to spend a lot of time close to your overdraft limit. When choosing your account take into consideration what the bank will charge for transactions that will take you over your limit as the cost of this can soon add up. Check your account regularly and don't let your spending get carried away.
Cash withdrawals
Most clubs and pubs these days have cash withdrawal facilities. However, the majority of these will charge you for your transactions. Plan ahead if you are going on a night out and save yourself some money. Charges for using an independent ATM typically range between £1.50 and £2. More than 37% of cash machines in the UK will charge so if you are a real party goer you could easily be charged £36 per term if you use independent ATM cash machines. So plan ahead and take your cash out from a non-charging ATM before you head out.