NatWest Accounts

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=== What do NatWest have to offer? ===
Why did I choose NatWest for my student account? The answer is very simple: I've had a bank account with NatWest for many years, and although I did research other banks before deciding who to open a student account with, I ultimately chose to stick with NatWest.

For students starting university this year who open an account before 10 October 2009, this is what's on offer:
* A ...
...text alerts...and you can use NatWest ATMs to top up your mobile. They also have a clever emergency cash system, whereby if your card is lost or stolen, you can ring them and they'll give you a unique PIN which will allow you to withdraw up to £300 from your account until your replacement comes through.


=== Setting up the account ===
To be eligible for this account, you just need to be a student. It's easiest to set up this ... more

Having recently graduated *sniff*, now seems like a good time to review what is now my graduate account, but was, mere months ago, my student account.

Why is a student account important?

One of the best things about being a student has got to be the "free" money.
One of the worst things about being a student has got to be being broke for half the year.

Either way, money is something that is invariably on a student's mind. So having a smart place to keep your hoards of borrowed cash is really important. And of course, if you don't have hoards of borrowed cash, then an overdraft can provide real reassurance and support until that next loan installment makes its way to your account.

Another important feature is the freebies that the banks use to intice us students in. What can I say? Us students love a good freebie...

What do NatWest have to offer?

Why did I choose NatWest for my student account? The answer is very simple: I've had a bank account with NatWest for many years, and although I did research other banks before deciding who to open a student account with, I ultimately chose to stick with NatWest.

For students starting university this year who open an account before 10 October 2009, this is what's on offer:

• A Maestro debit card - accepted pretty much everyone in shops and online, and can be used abroad (at a cost, obviously)
• Chequebook (you need to apply for this though)
• Student credit card (CAUTION: I'll come back to this later...)
• An overdraft facility starting at £1,250 in your first year
• Freebie #1 - A 16-25 railcard for 5 years, worth £130, which gives you up to 1/3 off rail tickets AND doubles up as a student discount card
• Freebie #2 - A 4GB memory stick, if you apply online
• A whole host of other offers and discounts

There's a variety of new-fangled things designed to make your life easier, including online banking, text alerts...and you can use NatWest ATMs to top up your mobile. They also have a clever emergency cash system, whereby if your card is lost or stolen, you can ring them and they'll give you a unique PIN which will allow you to withdraw up to £300 from your account until your replacement comes through.

Setting up the account

To be eligible for this account, you just need to be a student. It's easiest to set up this account at the beginning of your degree, but I have known people switch to NatWest for a student account during their course.

• You need to be 18 years old to benefit from the overdraft facility and credit card.
• You also need a UK address and proof of this address.

If you're a current NatWest customer, setting up your account is easy peasy. I didn't even have to approach them, they sent me a letter with a very very very short and simple form to fill in and sign, and then they took care of the rest. I had been reading up about student accounts and had read that I would need to go to the bank with loads of forms and bits of paper to prove who I was, prove that I was really going to university, etc. I didn't need to do any of that. I received another letter from NatWest confirming that I had a student account once UCAS had confirmed that I had got a place at uni. Simple.

If you are not an existing customer, I can shed very little light on the process of setting up an account. Of course, the website makes it look incredibly simple. They don't tell you about what forms you actually need, but I would imagine something from UCAS that proves you have a place at university would be useful, as well of the usual proof of identity and address.

It's the same as setting up most accounts, you'll get your card and PIN through the post and then you're good to go. You are entitled to a cheque book, but you will need to ask for this, it's probably best to ask for it straightaway.

Day-to-day running of the account

The most important thing about this account is that it MUST be your main, day-to-day bank account. Although I'm not sure about the legality of the situation, you are only really supposed to have one student bank account, and this must be your main account. Basically, that means that the bank doesn't want you to clear out your overdraft and then not hear from you again for the rest of the year. If you are considering having two accounts, please be aware of keeping this account active - putting money in every month and withdrawing money from time to time - as NatWest WILL chase you up on this.

The day-to-day running of this account is very simple. You can withdraw cash very easily, just check for the Maestro symbol, and more often than not it is free to do so. Putting money into your account is easy, and your student loan will normally end up in your account promptly (although I believe that this depends on your LEA). Paying money in is a simple procedure too, and setting up direct debits for paying rent, mobile contracts etc is simple too.

You can receive paper statements, I believe these come every month, but you can choose to only receive online statements. I don't use online banking so I can't comment on how easy that is to use, but all my friends rave about it. Their website is easy to use and informative, so I imagine their internet banking would be the same.

I don't use text alerts and don't know anyone who does, but that option is also available.

The Credit Card

Yes, the scary bit. NatWest will give you a student credit card, should you so desire. You do have to apply for this, and of course you're not guaranteed to get it, but it's much easier to try and get a credit card with your bank than anywhere else.

Applying for my credit card couldn't have been easier. I asked a cashier how to go about it, she gave me the form to fill in, and that was it. I received my card and PIN in the post and I had to ring up to confirm receipt of the card and to activate it. After that, I was good to go.

The GREAT thing about this credit card is that it's perfect for beginners. I think we all know how scarily easy debit cards can be, click a few buttons online, or tap a few numbers into a machine and you've just spent £50. Quick and painless...until you check your balance...credit cards are ten times worse! I was very dubious about getting one, but my mum of all people convinced me to get one. The Student credit card has a limit of £500, so you can't go too crazy with it! The best thing about it is that the credit card comes with a direct debit automatically set up, linked to your main student account. Basically, everytime your credit card bill comes through, a set amount will automatically be transferred to the balance, meaning that you NEVER miss your minimum payment. Obviously, you want to think about paying the rest off sharpish, as the interest rates aren't forgiving (around 19% I believe), but it's a great weight off your mind. You can control how much is paid by direct debit each time, be it the minimum payment, which is 5% of the balance, or the full amount. The card itself is a Mastercard, so once again, can be used in most places.

This credit card merits a review all of its own, but I feel it does deserve a mention within this review. Not all students will want one, but it's worth knowing that it is there should you need/want it.

The Overdraft facility

Now, this is what most students will be interested in. NatWest offer a very competitive overdraft facility, again incorporating some great features designed to make your life stress-free.

• Year 1 - £1,250
• Year 2 - £1,400
• Year 3 - £1,600
• Year 4 - £1,800
• Year 5 - £2,000

You can only use your overdraft across the five years if you still hold a student status, and during this time you can ask to have your overdraft limit lowered or raised at any time. An overdraft is easy to set up, literally go into a branch, ask for one, and provided they say yes, it's pretty much instantly set up. Your overdraft will be interest free provided that you have agreed it with the bank, you will be charged a fair sum if you go over the limit agreed.

NatWest have also introduced a new staggered system to the overdraft, to help you budget across the year. Instead of offering you an overdraft of £1,250 for your first year outright, they break it down across the three terms, offering you £500 for your first time, increasing it to £1,000 for your second time and then putting it up to the full £1,250 in your third term.

I was lucky enough to not have to use my overdraft facility, but it was very comforting to know that it was there should I need it.

Interest rates and mathsy bits

I must admit, I don't worry too much about all the APRs and VATs and %. All of that scares me somewhat. The overdraft is interest free provided you stay within the limit, but the rates rise sharply if you go over your limit. Interest on your balance is paid monthly, but it's barely worth worrying about, as the amount of interest you'll earn on your balance is not likely to be more than about 5p (and that's good going!)

You'll incur a charge of £38 every time you go over your agreed overdraft limit, or if you don't have enough money in your account to honour a direct debit for example. Of course, there's also the dreaded interest to think about if you do go over your agreed overdraft limit, which is around 18%.

You'll find all the accurate facts and figures in leaflets in branches, or on the internet.

My Experiences of dealing with NatWest

My only personal experiences of dealing with NatWest have been fine. I've only ever needed to go into the bank for a couple of things over my four years, paying in cheques, doing overseas transfers and asking for advice, but I've never had any problems. However, everyone has different experiences and I've heard plenty of horror stories about NatWest, as I have with other banks.

NatWest had a branch on campus but I found that I never really used this - I don't know why, but it felt almost like it was a 'pretend' branch and I wouldn't actually be able to do the things I wanted to do there. However, this is 100% based on perception and not on experience, and in hindsight I think it was really useful to know that there was a branch on campus should I have needed it. As it turned out, I lived in the centre of Birmingham so was able to use their main branches in town, several of which are open on Saturday morning - which is really useful.

I've found NatWest staff to be very helpful and friendly, both in my home branch and in Birmingham, and I was always able to do what I wanted quickly and easily. Even a transfer to a French account, which looked pretty scary from the form was explained to me quickly and in simple terms. I came up against a bit of opposition when I tried to get my Solo card (which I had from my previous account) switched for a Maestro, as Solo aren't excepted everywhere. I'm fairly sure that this should have been changed automatically when my account became a student account, but this didn't happen. I'm sure it would have happened when my Solo card expired, but I didn't want to have to use a Solo card for any longer, so I went into my local branch and enquired about the possibility of switching. Unfortunately, it was a bit of a 'computer says no' situation, the cashier said that the system wasn't suggesting that I should change, but she put the wheels in motion and I received my Maestro fairly soon after that.

So, for any current NatWest customers who are looking to upgrade to a Student account, make absolutely sure that if you don't already have a Maestro card, that you will get one as soon as possible. It'll mean not having to worry about whether your card will be accepted in high street stores and restaurants, as well as on the internet. Particularly for students looking to go abroad and use their card, a Maestro is a must as Solo is NOT accepted abroad.

What happens now?

Your student account will automatically be upgraded to a graduate account in the July of the year that you graduate. A lot of the features of the student account will still be available to you, including the interest-free overdraft, and you'll have access to an interest-free plan to help you repay any exising overdraft. You are also entitled to a graduate loan of up to £15,000, with specially tailored rates. Well worth looking into.

Overall Opinion

Overall, my experiences with NatWest have been positive, and I hope that they will continue to be. I've been able to manage to day-to-day running of my account without having to spend half of my life in the bank, which suits me, so I haven't really had many opportunities to encounter problems with the bank or with the staff. I have been in to enquire about other services and other bank accounts with other people and they're generally very helpful and give accurate information. I did notice a few small descrepancies between things I was told in one branch and another, but very minor details.

NatWest gets no complaints from me.

NB: I feel it's worth mentioning that NatWest also provide a student account for International students. However, the terms and conditions are quite different to that of this student account, and it's an account I have no prior knowledge or experience of, hence why I haven't really mentioned it within this review.
 

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