Look inside any uni student’s wallet and you’ll probably find 4 common items:
1. Some “buy one get one free” vouchers
2. A concession card
3. A loyalty card for the cafe on campus
4. An ATM card
Let’s face it, an average student’s wallet isn’t fat with cash, so we put quite a bit of effort to save that extra dime. But unlike the first 3 items, we don’t often see our bank account as a way to save money, and shockingly, Australians pay $600 million in ATM fees every year. So we really should be paying more attention to our bank account.
Sure, looking for savvy student bank accounts won’t be as fun as bargain hunting for iGadgets. But just like iPods, everyday transaction accounts come in all shapes and sizes. So how do you know which bank account is right for you? Independent financial comparison website Mozo recommends choosing an account that’s designed for your spending habits so you can avoid paying extra fees and charges.
The Online Shopaholic
If you’re idea of retail therapy involves a computer screen, look for a bank account that’s friendly to online shoppers. You won’t be able to make EFTPOS payments online, so sign up to any account that gives you a Mastercard or VISA debit card free of charge.
And if your favourite online stores are based overseas, check to see how much you’ll pay for foreign currency exchange commission fees. The standard commission is 3.00% so if you’re paying more, you’re paying too much!
The IOU(er)
Got lots of bills to pay each month? You’ll definitely want a bank account that comes with unlimited transactions and flexible payment options such as phone and internet banking. Also dig around to find banks that offer extra niceties such as BPAY and PostBill payment options free of charge. These features are mighty helpful for paying utility bills.
Cash Kings and Queens
If you’re the type of person that still prefers using coins and banknotes, make sure your bank has a large ATM network so you can access your money everywhere without paying high ATM fees. This doesn’t necessarily mean you must stick with a big bank though, many smaller banks share ATMs with the Big 4 banks, and some online banks even reimburse you the fees when you withdraw over a set amount!
The Jetsetter
Planning on globetrotting later in the year? You’ll need a bank account that stretches your hard earned dollars further. Many banks charge as much as $5 for overseas ATM withdrawals but if you look hard, you’ll find some banks that only charge $2.50 for the privilege. If you don’t like carrying cash and prefer to pay by card, get a Mastercard or Visa debit card with competitive foreign exchange commissions. Better yet, use a prepaid travel card that locks in foreign exchange rates before you travel!
The Super saver
If you’re an A+ student with your finances and have extra money at the end of each month, remember to dump your excess savings in a high interest savings account. Through the magic of compound interest, your piggy bank will fatten up in no time so you won’t have to rely on coupons and vouchers for your morning coffee.
As a full time student, you shouldn’t be paying any account keeping fees on your bank account. Most banks waive their fees so simply flash your student ID and smile at the bank teller. Remember, avoiding extra fees and charges means more money in your wallet to be spent on more important things…like iGadgets!
Shaun Leung writes for Mozo an independent website that compares hundreds of banking and insurance products in Australia. Check out the Mozo Student Room, a resource hub designed for students to help answer all their money matters.
Image: Ken Teegardin
