This page will provide all the necessary details related to the best bank accounts for international students in Cheltenham and nearby areas in the UK. Students planning to study in Cheltenham, UK must have an active bank account for their day-to-day transactions. We have created a list of the best student-friendly banks in Cheltenham along with the tips to choose the right one. Additionally, we will discuss the benefits of having a bank account. One of the most important benefits of having a bank account and managing it responsibly is that it helps build a credit history. This is crucial for future financial needs, such as applying for loans, credit cards, or even renting accommodation.
Types of Bank Accounts in the UK
Before moving forward with choosing a bank account. Students must know all about the types of bank accounts available in the UK. Prior knowledge about the types of accounts will help students choose one that is pocket-friendly and comes with other banking facilities. Here are all the types of bank accounts for international students in the UK:
- Barclays Bank Account
- HSBC International Student Bank Account
- Halifax Current Account
- Lloyds Bank Classic Account
- Nationwide Flex Account
- Santander Basic Current Account
- TSB Spend & Save Account
Top Student-Friendly Banks for Students in Cheltenham
Once you are aware of the types of bank accounts available for international students, it’s time to consider the banks offering such types of accounts. Here are the top 5 student-friendly bank accounts for students in Cheltenham, UK.
- Barclays Bank
- HSBC Cheltenham
- Lloyds Bank
How to Choose the Best Bank Account in the UK?
There are multiple ways to choose a bank account in the UK. Students must check the perks and benefits a bank account offers and compare them with others. Here are the factors which will help students choose the best bank account in the UK.
Fees and Charges
Banks in the UK charge a monthly fee for certain accounts. Before moving forward with choosing an account, students must ensure that they understand the fees included, and thoroughly understand the banking rules and regulations. Barclays charges 2.75% for Personal and Premier customers, and 2% for Business customers. Students can open a bank account for free in Barclays, HSBC, or Lloyds in Cheltenham, UK.
Friendly Services
Banking services play a crucial role in helping students achieve their financial goals. There are a wide range of friendly services that must be considered before opening a bank account. These include:
- Interest Free-Overdrafts
- Fee-Free Banking
- Discounts and Perks
- Student Credit Cards
- Mobile and Online Banking
- Budgeting Tools and Financial Education
- International Students Service
- Savings Account
- Rewards and Cashbacks
- 24/7 Customer Service
- Emergency Services
- Free and Easy International Transfers
Interest Rates
Each bank and account type has separate interest rates. As of August 2024, The Bank Rate, or Interest Rate offered by the UK banks is 5%. Before opening a bank account, students must become familiar with the bank rate and mortgage rates charged by the banks in the UK.
International Banking Needs
If you are an international student in the UK, you might have indulged in international transactions. To make overseas transactions possible, it is important to consider a bank that offers favorable exchange rates and charges low fees on international transactions. International students can consider the ease and cost of sending/ receiving money from overseas, especially when sending or receiving money from abroad.
Security Features
Although it’s a digital world, where cash transactions are being replaced by digital payments, we still face security concerns. It’s your hard-earned money and it must be protected by the bank. Your bank must take strong actions against cyber security crimes and online scams. What’s on your part is to check that your bank is covered under the Financial Services Commission Scheme (FSCS), which protects deposits of up to GBP 85,000 per individual bank.
Financial Tips for International Students
To achieve financial goals, students must know how the basic financial and banking systems function. On paper, it sounds very simple. Credit what comes in and debit what goes out. But the reality is very complicated. Here are some simple financial tips for international students to help them achieve their financial goals.
Consider Affordable Accommodations
Your accommodation sums up to 60% of your entire cost of living. Sounds shocking, right? A 3-star student housing in Cheltenham can cost GBP 450 to 600/ month, while the entire monthly cost of living is GBP 800 to 950. When booking accommodation, consider factors like the cost of living, travel and commuting charges, etc.
Set Short Term Goals
To meet your long-term financial goals, it is necessary to set short-term realistic goals. This can be as simple as setting out a monthly budget and breaking it into four; weekly budgets. It’s a great way to keep track of your expenses and ensure you have sufficient funds for essentials and a little extra for emergencies.
Avoid Impulse Purchase
This is the most important step towards achieving your financial goals. Avoiding impulse purchases can enhance your saving potential, improve budget adherence, minimize unnecessary debts, and encourage mindful spending. Avoiding impulse purchases can help enhance focus on things that align with our financial goals. These can include investing in education, career development, or experiences that add real value to your life.
Enjoy Free Activities
Many students are not aware of this, but while pursuing their education in the UK, they can access many free activities and services. These can include libraries, museums, historical sites, workshops and lectures, public parks and gardens, university gyms and sports facilities, online courses and MOOCs, online journals and databases, etc.
Conclusion
Living in Cheltenham or another UK city requires a comprehensive understanding of city life and financial requirements. Students planning to study in Cheltenham, UK must know all about how to open a bank account and the beneficial banking services for international students.