Students choose their bank based on reputation

Natwest has come out as the top bank account in a survey run by The Student Room to investigate students’ spending and saving habits and students have said that the bank’s reputation was the main factor for them making their decision.

Over 500 students aged 13-26 took part in the survey that was supported by the Department for Work and Pensions and the Money Advice Service.

We found that students tend to spread their money around with over 55% of respondents telling us that they have more than one bank account and over 60% have a savings account but despite widespread advertising and media coverage ISA savings have only been taken up by 44% of the students surveyed.

When it comes to spending, past reasearch has shown that this is really where students come in to their own as we wrote about back in October 2010 with a YouGov report that said 68% of UK students don’t have a credit card; our latest figure shows a small increase with over 40% owning one.

As previously stated Natwest are the favoured bank amongst students with over 20% choosing them as their main bank with HSBC (14%) the closest  competitor and Halifax (8%) a long way off. However only 45% of The Student Room’s users have an interest free overdraft with the majority (52%) only using it for emergencies.

The survey also found that reward cards are popular amongst young people with almost three quarters of respondents looking to get something back on their purchases with a Nectar card or something similar.

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