Using Your €ents!

Student Banking

When starting out in college it is very important to make an informed and sensible decision about what bank you want to use. The banks in this county know that you guys are some of the most promising undergraduates students around that will evolve into highly lucrative customers in years to come.

As bank of Ireland openly admitted in their advertising, “when you start making it, we do too!” Banks will try anything and everything to get you to open your student account with them in the opening weeks of college. You will be offered free phone credit, sweets, food coupons, book vouchers, etc.

It is important to look beyond the freebies and choose a bank that offers a student package that best suits you. Over your life time you’re going to spend tens of thousands on financial services and the bank you choose as a student is likely to be a bank for life.

Do’s

· Spend according to need, not desire

· Pay all bills immediately

· Tap all sources of student finance, find out if your eligible for a grand or for the welfare fund.

· Do out a Budget so you can see where your spending your money, you will be surprised.

· Line up a holiday job with good pay.

· Draw out money only if you need it

· Take with you the amount of money you intend on spending.

· If you end up in debt, tell some you trust immediately

Don’ts

· Borrow money from friends

· Use credit card

· Ignore debt, it will get worst.

· Ignore letters from the bank or creditors.

· Suffer in silence- student advisers and your welfare officer are here to help you.

Opening an bank account.

What you need:

· Identification- student card and passport or drivers licence

· Proof of address – Utility Bill or bank statement that isn’t older than three months

· International students – you will need a letter from your college that says you are a student at your home college, the name of your course, your address at home as well as your address in Ireland stated in the letter.

What Services you get in return from the Bank.

1) ATM Cards

All students should have ATM cards at all times. ATM cards provide easy and direct access to your funds. A Government Duty of €10 is charged on all ATMs cards annually.

2) Laser Card

Instead of taking out €20 every time you use an ATM when you want to purchase an item you can buy it with a Laser card and the exact amount is debited directly from your account. This avoids carrying lots of cash

3) Credit Card

Credit cards are useful in that they allow students to shop online and they provide an easy source of short term debt. If care is not taken however your credit card can become your worst friend! Use a credit card for short term expenses and try and pay your bills at the end of every month before the interest free period runs out. DO NOT under any circumstances use your credit card as a source of long term borrowing, and most of all don’t exceed your credit limit. DO NOT use your credit card to withdraw cash as you are charged extra for this. Last and at not least, there’s a Government Duty of €40.

4) Overdraft

Overdrafts are a source of short term debt tied to your current account. If you would like an overdraft speck to your bank manger and agree a sensible overdraft limit. Make sure you don’t exceed your overdraft limit as you will be hit with severe charges.

5) Student Loans

Many students will need to take out a loan during their time in college. There are a number of options if you need to do so. Term loans are available from most banks whereby a fixed amount is repaid over a set period; however most student loans are very flexible regarding repayments. You will more than likely need a parental guarantee as security for the loan.

In Financial Difficulty?

MABS is a national, free, confidential and independent service for people in debt or in danger of getting into debt.

MABS helpline 1890 283 438 (9am to 8pm Monday to Friday)

MABS helpline is staffed by Helpline Advisers who can assist you to deal with debt problems by:

They can help you to assess the extent and true nature of your debt.

Helping you to explore your options

Providing you with the information you need to deal with your debts

Provide relevant self-help material

The only cost to you is an 1890 call. Once you make the first call, the advisers can call you back if necessary.

Essential Links if your looking into getting a Bank Loan

1) www.aib.ie/students

2) www.boi.ie/students

3) www.ulsterbank.ie/students

4) www.itsyourmoney.ie/costcomparisons.jsp

5) www.itsyourmoney.ie/jargonbuster