Student survival guide: Banking without pain ...

By JOHN BRIDGES

With so much to organise at the start of the academic year, setting up a bank account and making sure it works in your interests should be the least of your worries.

Banks have packages tailored for tertiary customers that save money, time and effort.

The ASB, ANZ, BNZ, National and Westpac all waive fees for setting up and maintaining accounts and all offer interest-free overdrafts (at least for the first year).

Apart from Westpac, they also offer unsecured personal loans at discounted interest rates.

In general, transactions are also free, although the BNZ levies a flat $4-a-month fee and Westpac charges $1 for each over-the-counter transaction.

There are also credit card deals with some offering up to 55 days' free credit.

The packages vary slightly from bank to bank, so it pays to shop around. For instance, there may be a small monthly management fee on overdrafts or an application fee for personal loans.

Depending on the bank, overdrafts for first-year students range from $500 to $1000. In some cases, there are top-ups for subsequent years to a maximum of $1500, although on some of these you may have to pay interest.

Unsecured personal loans on offer start at $2000 for the first year of study up to a maximum of $6000 over three years with five years to repay.

As a rule, the banking packages are restricted to full-time students studying for a minimum of one year at a registered tertiary institution or through a recognised Qualifications Authority course.

You may also need to have your student loan, allowance or other income paid directly into your account.

There are various places you can go to for budgeting help such as your bank or local Citizens Advice Bureau. Winz Student Services can help with benefits you may be entitled to.

It helps to work out a rough budget so you can determine what you are spending your hard-earned money on and whether there is any left over to save for the things you want.