Thursday 14th September 2006
Undergraduates are being advised to shop around for the best student account ahead of the new term.
Halifax is warning students that they should be wary of deals that offer free gifts to students, such as an iPod Shuffle or MP3 player, as these often prove to be a false economy through a corresponding low interest-free overdraft limit.
Halifax, for example, offers no free gifts, but provides an interest free overdraft limit of £2,750, far higher than many rivals which offer technological incentives.
Peter Jackson, managing director at HBOS banking & savings, commented: "The best advice is always to avoid getting in debt in the first place but for most students thats just not possible.
"So the next best advice is to borrow money as cheaply as possible and thats why its important not to be taken in by the lure of free gifts and to concentrate instead on the interest free overdraft limits which are on offer."
New students who have yet to open a bank account are advised to do their research and look for the deal that suits them best.
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