It has long been the case that
new students embarking on a degree have been nudged
towards bank accounts specifically tailored to their
needs. It’s certainly true that becoming a student
can usher in a newfound sense of financial
responsibility for young people. It’s likely to be
the first time they’ve lived away from home and with
rent to pay and limited student loans to spread
across a hectic social life it can provide a
valuable entry into the adult world of effectively
managing your current account.
The substantial demographic
(43%) made up of 16-21 year olds who have decided
not to go to University have generally been less
well catered for. In many cases bright young people
are choosing to forgo a degree, preferring to try
and get a head start in their career.
This probably has something to
do with the increased popularity of less traditional
career paths in industries like hair and beauty,
entertainment or other vocational subjects and
certainly shouldn’t be taken to indicate a lack of
ambition. On the contrary it just as likely reflects
a savvy awareness that the lack of a University
education no longer bars you from a successful
career and high earning potential. In fact two out
of three of these young workers fully intend to be
earning £40,000 by the time they’re 35.
It appears some banks are
starting to take a bit more notice of this group of
ambitious young people. Santander offer a very
competitive 16-18 Current Account (check their site
for more on this and other products, including
savings).
Essentially these new accounts
appear to offer a similar range of benefits to
Student bank accounts including a best-buy credit
interest rate of 10.00%, a guaranteed minimum
overdraft of £250 for over 18s, a £10 ATM buffer
zone and linked savings accounts. More particularly
demographic orientated are some of the other perks &
tips and hints on breaking into particular
industries via progressive, youth friendly media
like podcasts and web chats as well as a panel of
celebrity mentors’ including the likes of James
Martin, Trevor Nelson and Wayne Hemingway, chosen as
inspirational figures in non-academic industries.
In part it seems these sorts
of bank accounts provide a useful testing ground for
new banking technology - surveys suggest that this
age group is almost twice as likely to embrace new
banking methods. There seems to be a particular
effort to push mobile banking which gives customers
the possibility of checking their balance or
accessing mini statements on a mobile phone.
Additionally, by signing up youngsters early, banks
will be intending to gain life loyal customers. It
must be said, however, that you should always shop
around for the best financial products after
introductory ‘bonus’ offers come to an end.
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