Banking

There are a number of bank accounts to chose from. For more information on each, please see the table below:

Get your free Personal Banking Guide.

Did you know?

Contactless Payments do not always automatically deduct from your 'Available Balance' and can take a few days to show as a pending transaction, especially over the weekend.

If you do not keep an eye on your spending, you could easily spend more than you have in your account as the payment is authorised based on your 'Available Balance'.

TIP! Take an extra 10 seconds and use chip and pin rather than contactless to better track your spending.

What is an overdraft?

Overdrafts are an arranged facility that allow you to borrow money through your current account. They are flexible, easy to manage and do not require you to make a monthly minimum payment, unlike credit cards and personal loans.

Ordinarily, overdrafts carry with them costly interest rates. However, as a student, you can ask your bank to change your current account to a Student Bank Account (or their equivalent). This will give you access to an interest free overdraft for the duration of your course, plus typically one year after graduation, allowing you time to clear the overdraft interest free.

If your bank does not provide this facility, simply find one that does and you can use the Current Account Switch Guarantee to change your account hassle free. Mature students can also avail of this service, Mature students can also avail of this service, shop around for the best Student accounts.

How do I set up an overdraft?

A student overdraft can be applied for through online banking or in person at your local branch. When you apply for an overdraft, your bank will agree an overdraft limit based on your current circumstances and your ability to repay. Providing you do not exceed this limit, you will not be subject to any additional fees or charges. Exceeding your agreed overdraft limit is known as being 'overdrawn' and you will be subject to fees and/or charges regardless of the type of overdraft account held.

Once approved, your overdraft limit will be applied to your account and your 'Available Balance' will increase by the agreed overdraft limit. For example, your 'Current Balance' is £125 with an arranged overdraft of £1,000, meaning your 'Available Balance' will show as £1,125. Some banks will show the available overdraft balance separate.

Once you are using the overdraft, your current balance will show as a negative amount. If your overdraft limit is £1,000, the maximum negative balance you can have is £-1,000 before incurring any fees or charges for going 'Overdrawn'.

There are a various different types of savings accounts, we have listed a few below to help get you started:

Why save?

Most people save for one of two things:

1. To prepare for eventualities, such as car breakdown, replacing a washing machine or in case of job loss.
2. Saving for a big event, such as new car, buying a house or dream holiday.

Make your money work for you. Putting aside money can generate a little interest. The higher the AER (Annual Equivalent Rate) the more interest you will get on your savings.

Having some savings behind you will help you become more financially secure. This means if an unanticipated cost cropped up, you wouldn't have to borrow money, potentially at a high interest rate. You may think that you can't afford to save, however the trick is saving little but often. Cutting out that coffee once or twice a week could allow you to save £20-£25 per month. That's an average of £260 a year.

The table below shows how saving a little each week adds up over the year. (Please note that these figures do not include any interest your savings accounts will offer you.)

*Based on a three-year degree & graduating in June (34 months)

If you are unable to pay for something up front, you may need to apply for credit to make your purchase.

Before applying for credit, it is important to understand the different types of credit available.

What is secured borrowing?

Typically most borrowing is unsecured. Secured borrowing means that the lender will require something as security in the event that you are unable to make your repayments, typically this is your house.

For those who have taken a Credit Union loan, they may have been told that their loan is a secured loan, meaning that any shares (savings) held with the Credit Union will be held as security in the even that you cannot repay your loan. During this time, it is unlikely that you will be able to access these savings.

During your time at Ulster, you may need to make use of credit facilities to help with unanticipated costs you don’t have money put aside for. If this is the case, be money-aware and weigh up all your options before jumping at the first company that will lend you money.

• Where possible, avoid buy now pay later options. If you can't afford it now, can you save and pay for it upfront at a later stage.
• If saving first isn't an option, read - Do you need to borrow?
• How much will it cost? All credit facilities come with a cost. In the UK lenders must display the APR (Annual Percentage Rate) of their products so that customers can compare the interest rate with other lenders, and in turn see the true cost of their borrowing. The total interest paid is how much the lender is charging you for borrow money from them.

• Example 1 – Personal loan:
  • You borrow £2,500 and repay it back over 3 years
  • APR is 17.6%
  • Total repayable £3178.44
  • Total interest charged £678.44
• Example 2 – Credit card:
  • You spend £750 using a credit card and repay it back over 12 months
  • APR is 34.9%
  • Total repayable £899.22
  • Total interest charged £149.22
• Example 3 – Payday loan:
  • You borrow £300 and repay it back over 71 days
  • APR is 1301.2%
  • Total repayable £470.40
  • Total interest charged £170.40

Check out the Consumer Council’s Borrowing Money guide.

Never borrow money from a lender who is not regulated by the Financial Conduct Authority, and please Be ware of Loan Sharks.

What is a credit rating and what does it do?

A credit rating is what financial institutions use to assess your ability to pay back the money they lend you. Lenders look at your past repayment behaviour in order to predict your future behaviour, basically it is a risk assessment tool.

If you have never borrowed before, you are unlikely to have a credit rating, and the first chance you get to start building one up, may be by using a student overdraft or mobile phone contract.

If you have borrowed before, but have made late payments or missed some, this may have put a few red marks against your creditworthiness.

To register for your full Experian Credit Report FREE of charge – sign up to Money Savings Expert’s MSE Club.

If you are currently paying for a credit report – sign up to the MSE Club and cancel your current subscription. This will have no effect on your credit score, it will simply save you upwards of £14.99 per month!

How to boost your credit rating

Register to vote.

Do not withdraw cash on credit cards, this is seen as poor money management by lenders.

Never miss payments or be late in paying them.

Beware of opening bank accounts with friends – you will be financially linked and if they have a bad credit rating it can have a negative effect on your own future borrowings.

Avoid payday loans and gambling/betting, these can kill your chances of getting a mortgage or loan in future years.

Most students can be expected to get into some debt while studying at university, whether this is taking out loans or using the interest free overdraft facility on student bank accounts.

Taking out loans to invest in your future can be a positive step, however, it is vitally important that this is managed carefully, ensuring you can afford the repayments, making monthly payments on time and keeping within the terms of your credit agreement, rather than leading to a serious financial crisis.

Some debt can be easily managed by adjusting bad spending habits, putting stringent budgets in place and generally being more disciplined with your money.

However, other debt can arise from unforeseen circumstances. Regardless of the reason, the most important thing is to manage your money before it manages you.

Debt is not just a money issue, it can affect a number of different areas in your life, therefore it is very important to get advice sooner rather than later.

If you feel that your debts are building up and becoming unmanageable, don’t bury your head and hope they go away, seek advice and help as soon as possible.

For sources of help and support for debt management, please see below.

If you are a registered Ulster University student relying on credit facilities to meet your daily living costs, you may be eligible to apply for Financial Hardship Support.

For other supports, visit our Additional Supports section.

Help with the cost of living.