Compared to traditional banks, digital banks offer more services, opportunities, and flexibility to customers. The incorporation of technology in the banking system has been most beneficial to us as we can access all important services such as depositing, withdrawing, sending, and even applying for loan services with just a click on our mobile devices. 

Another advantage of digital banks is that there are so many of them, giving customers many options. However, this can be a bit confusing at times. But not to worry, there are certain criteria to consider to choose the one that suits you most. I’ll be talking about these criteria in this article.

What is Digital Banking?

Let’s explain what digital banking is first: Digital banking is the incorporation of technology and banking. It’s the process of carrying out transactions such as sending or receiving money, withdrawing money, applying for loans, and many more via a laptop, tablet, or phone.

With digital banking, the old system of paperwork like cheques, demand drafts, pay-in-slip, and more has reduced drastically.

Also Read: SMS Marketing: What is it? How can it help your business?

How to choose the right digital bank: 7 Considerations

Given the sheer number of digital banks, you have to make sure you are making the right choice. So here are the criteria you should consider to choose the right one.

1. The credibility of the bank

This is undeniably the first factor you should put into consideration when choosing a digital bank. There is a tremendous increase in digital banking platforms as there are lots of consumers of the service. 

And cybercriminals are working on various schemes to deceive naive and unsuspecting people. One of the ways to confirm the credibility of a digital bank is to confirm if they are registered and licensed by the Central Bank. Another way is to check out their mobile app reviews on Play Store.

2. Offer all digital services

Another factor is that you have to ensure that the bank offers the options to carry out, through the website and the mobile app, any form of transaction you want to perform.

Ranging from sending or withdrawing money to applying for loans to creating mobile wallets, the digital banking platform must enable all these.

Nowadays, even some banks offer the option of opening an account within the comfort of your home.

Also Read: 8 Benefits of web analytics for your online business

3. Accessible at all time

The purpose of the advancement in technology is to create ease for humans in every aspect and that’s what digital banking should be, the platform that makes the banking process convenient for everyone.

The best digital banking platform must be easily accessed all 24 hours and must operate all 7 days a week no matter the current situation of things. You should know about the service availability of any digital bank you want to choose before choosing. 

4. Account and Service Options

The account and service options in every digital bank differ.  Ensure that the bank offers the account options you need(either a checking or savings account) and the service options you need(either a personal or business loan option) before choosing or if you need to choose a particular account to have access to some banking benefits.

Additional services such as overdraft protection, treasury or investment protection, and certificates of deposit are also offered by digital banks, check out the banks to know which offers the one suitable for you.

5. Charges on digital services

Before choosing a digital bank, make sure you know the charges rate and interest rates. Some digital banks charge less or simply don’t charge on transactions while some charge more on transactions.

So you must know the banks that offer the options suitable for you. For instance, some accounts don’t charge for transfer but you can only save a limited amount in it and there are some that charge but the amount you can save is unlimited. Therefore choose the one suitable for your needs and pocket.

Also Read: What is a marketing plan and how to write one?

6. Choice of payment mode

Digital banks should offer options for various payment modes. You must ensure that any digital banking you choose offers you the option to choose any payment method you prefer or provides you with a mobile wallet.

The debit card is gradually losing its usefulness, so you must make sure that the bank you choose offers you the option to perform transactions through other online gateway using PSE or using a QR code.

7. Security 

While you should do your part by using a strong password for your account, the bank must also do its part by providing the resources you need to protect your information on the platform.

One of the forms of security that can be provided by the bank is notification. It’s a norm for every bank to send notifications of payment or withdrawal to customers. As it will let you know if the transaction you perform has been made, it will also notify you when your account is being tampered with or an unknown payment is being made from your account.

Though we don’t get to see this every month, it does happen and you must ensure the digital bank you want to choose will send you a notification anytime you perform a transaction to prevent this.

The form used for most notifications is SMS, but some banks do use the email method. So if you see a notification about a payment or withdrawal you didn’t make, you should complain to your bank to rectify the situation.

Also, if you didn’t get the notification of the payment or withdrawal you make, contact your bank about it.

Bottom line

Digital banks are like the upgraded version of our traditional banks as they offer more banking benefits. However, you must be careful in your choice so as not to wish that you had better stay with the conventional banks. I hope these seven criteria above will guide you in choosing the best suitable digital banking platform for you.

Basic financial terms explained

Before we dive into the really meaty stuff, let’s check that we know what the basic banking terms mean. We’ll be using some of these later on to describe the more complicated phrases, so it’s worth making sure that you’ve got a good grounding.

A BANK. This is the place where people store their money to keep it safe. A bank can also lend money to help you pay for school, or to buy things like a car or house.

A BANK ACCOUNT is where your money is held. The bank stores your money, and allows you to keep track of your account activity, or ‘transactions’.

A TRANSACTION happens when you put money in your account (deposit) or take money out (withdrawal). Paying a bill or transferring money is also considered a transaction.

An ACCOUNT BALANCE is the amount of money in your bank account at any given time.

SAVING means setting aside the money you have instead of spending it right away. Usually people save their money for big purchases or events – like college or university, a house, a big trip, a car, etc. Typically, you will put your money in a savings account or investments until you have enough to buy what you want.

What is a current account?

A current account is a one-stop-shop for managing your day-to-day finances. Most people will just refer to it as their bank account, and it’s usually where your Maintenance Loan or salary will go.

As a student, you’ll most likely have a student account (and a graduate account once you’ve left uni), but these are just different types of current account.

Read: Current Account Vs. Savings Account: Which is right for you?

INTEREST. There are two types of interest that you should be aware of. The first type is the interest that a bank pays you for keeping your money with them. Because interest is paid as a percentage of your bank balance, the more you have in your account, the more interest you get paid. The second type of interest is what the bank charges you for borrowing money.

A BUDGET. This is something that can help you keep track of money that’s coming in and the money that’s going out. A budget can help you identify what money you have available to save, spend and give.

A DEPOSIT is the money you put into your bank account. Your account balance goes up when you make a deposit.

A WITHDRAWAL is when you take money out of your bank account. Your account balance goes down when you make a withdrawal.

An overdraft is like a buffer attached to your current account, giving you some money just in case you ever use up all of your own.

You may be charged a fee or interest (or both) by your bank for entering your overdraft. It’s therefore important that you keep on top of your finances and don’t go too far into your overdraft.

Student bank accounts often come with an interest-free overdraft, which (as the name suggests) allows you to use a certain amount of your overdraft without paying interest. The overdraft may also be fee-free, meaning you won’t be charged for using it.

The final key aspect of overdrafts is that they can be split into two sections:

• Planned overdrafts – These are also known as arranged overdrafts, and they refer to ones that you’ve agreed with your bank. When confirming this with them, you’ll also agree on any interest rates or fees attached to your planned overdraft.
• Unplanned overdrafts – Unplanned, or unarranged, overdrafts come into play when you exceed your planned overdraft allowance. At this point you’re likely to be charged much higher interest rates and fees, so avoid it if possible!

An AUTOMATED TELLER MACHINE (ATM) is a self-service machine where you can take care of your basic banking transactions. For example, you can deposit a cheque, pay a bill, transfer money from one account to another, or withdraw cash. You use your Client Card and PIN to access your account and make whatever transactions you need.

A PIN (or Personal Identification Number) is the special passcode you use whenever you want to use your bank card or otherwise access your bank account (like at the branch). To keep your money safe, it’s important to keep your PIN private – don’t share it with anyone!

A CLIENT CARD is also known as your bank card, and you get it when you open a bank account. It lets you access your accounts while in a branch, at an ATM or a store, or through online banking. Most of the time, you use it alongside your PIN or RBC Online Banking password.

A CREDIT CARD is a card that gives you access to a certain amount of money, known as a credit limit. When you use a credit card, the money doesn’t come out of your account right away. Rather, you have to pay off the credit card balance by a certain due date. If you don’t, you’ll get charged interest, which is a percentage of the amount you owe.

A DEBIT happens anytime money comes out of your account. For example, if you send someone an e-Transfer, or if your cell phone bill comes out of your account each month, that transaction will show up as a debit.

What’s the difference between credit and debit cards?

A credit card is essentially an agreed way of borrowing money on a consistent basis. That’s not to say you don’t have your own money to spend – it just means that you’re delaying the point at which you’re using your money.

Sadly you will have to pay back the money you’ve spent on a credit card, with interest often added on too.

If you ever want to get rid of a credit card, you can cancel them fairly easily. But remember, you’ll need to pay off any outstanding debt on the card before you’re completely shot of it!

A debit card is a card that gives you access to the money in your current account. When you use a debit card, you’re either spending your money or dipping into your overdraft.

A CREDIT happens anytime money goes into your account. So if someone sends you an e-Transfer, or you deposit a cheque from your grandmother, that will show up as a credit.

Credit is a phrase that’s used in conjunction with lots of other words (like credit card or credit rating), but it can be used by itself in one of two ways:

• To be ‘in credit’ means that you have more than £0 in a given account. You’ll see this on your current account if you’re not overdrawn, or on a bill if you’ve accidentally overpaid (meaning that your account with that company is in credit, because it has more money in it than needed).
• To ‘have credit’ means that you’ve borrowed money from a lender.

A VIRTUL VISA DEBIT is a card used for online purchases when you don’t have a credit card. Purchases made with your virtual visa debit are taken from your chequing account.

More complex financial terms explained

Right, we’ve covered the basics. Now let’s look at some slightly more complex terms.

What is a Direct Debit?

If you’ve ever been responsible for paying for your own phone contract, you’ll have probably paid via Direct Debit. In fact, most regular bills can be paid for in this way.

Setting up a Direct Debit means that you’ve told your bank to pay money to a certain organisation on a regular basis (often a specific day each month). The amount may be the same each time, but it can change when appropriate (we’ve all had to pay the price for exceeding our data allowance).

Direct Debits are controlled by the organisation that you’re paying the money to. They set it up, and they control how much and how often you pay them. This is just one of the many reasons to regularly check your bank statement, just to make sure you’ve not been over-charged.

Although Direct Debits are controlled by the organisation being paid, you can cancel them at any time – but don’t expect the company to keep providing a service if you stop giving them money.

Collateral

This is typically a tangible asset used to secure a bank loan. If you fail to make payments on the amount you borrowed or accrued interest, the bank may be able to seize and sell the property used as collateral. An example of collateral would include land, house, car, stock and business machines.

Working capital

It is more like an accounting term, but the bank usually ask business borrowers to confirm their working capital need. It is used to describe the amount, by which the business current assets exceed its current liabilities. Some people describe it as the funds the firm has available to run its day-to-day business operations. Working capital can be well managed if one understands the working capital conversion cycle.

Working Capital conversion cycle

It described the dynamics of short-term cash flows that occur during the normal operations of a business. The working capital conversion cycle is the circular process starting with purchase of inventories on credit, then to sell those inventories in cash or credit and finally to carry the resulting accounts receivable that are the proceeds of the inventory. When the receivables are paid, the firm can then use the proceeds to either repay the debts or to start the cycle all over again by purchasing new inventories. It is desirable to keep the cycle as short as possible as it increases the effectiveness of working capital.

Money laundering

This is when money gained from a crime is put into a bank or any other legal business activities so that it can be accessed safely by the criminals and terrorists. It makes the proceeds of illegal activities easier to get to.

Standing order

A regular fixed payment made out of one account to another account or beneficiary. Standing order has helped many people to transfer funds from their current account to saving account as soon as they receive salary. It can also be used by business to make payment into an escrow account when their main account reaches certain limit.

Available bank balance

The amount of money in your account that is available for immediate use. If the account has no uncleared cheque or blocked fund, then the available balance should be the same as the total or book balance.

Book balance

The book balance is the term banks use to describe the amount of money in the account before any adjustments for cheques that have not yet been cleared. It is sometimes called the ledger balance.

When other bank’s cheque is deposited in a bank, it does not get available immediately. It takes about two to three business days in some countries.

Time or fixed deposit

An agreement to deposit a stated amount in the bank for a fixed length of time during which a fixed rate of interest will be paid (unless disclosed as a variable rate). Penalties are typically levied on the interest if the funds are withdrawn before the end of the agreed-upon period.

Inactive account

Sometimes called dormant account, it is an account in which there have not been any transactions for an extended period of time (does not include bank own entries).

Debit card

A plastic card that deducts money from the designated bank account to pay for goods or services. A debit card can also be used at ATMs to withdraw cash.

Cost of funds

The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one of the most important input costs for a financial institution, since a lower cost will generate better returns when the funds are deployed in the form of short-term and long-term loans to borrowers. The spread between the cost of funds and the interest rate charged to borrowers represents one of the main sources of profit for most financial institutions.

Cash reserve

Bank reserves are the currency deposits which are not lent out to the bank’s clients. A small fraction of the total deposits is held internally by the bank or deposited with the central bank. Minimum reserve requirements are established by central banks in order to ensure that the financial institutions will be able to provide clients with cash upon request.

The main purpose of holding reserves is to avoid bank runs and generally appear solvent. Central banks place these restrictions on banks, because the banks can earn a much larger return on their capital by lending out money to clients rather than holding cash in their vaults or depositing it with other institutions.

What is a standing order?

Standing orders are very similar to Direct Debits, but with a couple of key differences. Firstly, unlike Direct Debits (which are controlled by the recipient), a standing order is controlled by you. You set it up, and you control how much and how regularly the payments are made.

The other important difference is that a standing order will always be for the same amount of money. You can elect to change the amount, but this will be a permanent change – if you want to transfer a different figure each month, a standing order probably isn’t for you.

Rent payments are a perfect example of when a standing order should be used. Rent is usually paid in equal instalments every week or month, and usually on the same day.

By setting up a standing order, you can make sure that your rent gets paid without having to remember to do it (although you will have to make sure there is enough money in your account!).

What is a guarantor?

When you borrow money from a lender, or sign a contract to make regular payments (like when you agree to rent a property), you’ll usually be asked to provide a guarantor.

A guarantor is essentially your safety net. They are expected to make payments for you when you can’t, so they will need to be financially secure themselves – or at the very least, have a good credit score.

Try to think of a guarantor as a kind of insurance: hopefully you’ll never need them, but everyone’s happier knowing that they’re there just in case.

What is an ISA?

Acronyms are everywhere in finance, and this is one of the biggies. An ISA (Individual Savings Account) is a savings account that allows you to store money without having to pay tax on the interest gained.

The tax-free nature of ISAs is why they were historically a very popular way to save larger sums of money. However, in 2016 the law changed to allow a significant proportion of the population to save money in a normal savings account without paying tax on the interest.

The most complicated financial terms explained

Ok, we’ll admit it – these aren’t the most complicated financial terms out there. But they are the most complicated ones that you’ll need to worry about as a student.

Before we start, just as a warning, we’ll be looking at AER, APR and EAR. These all look pretty similar – they’re all acronyms, and they’ve all got an A and an R in them.

What’s more, they are pretty similar. But they do refer to different things, so it’s worth getting your head around what they mean.

Right, if you think you’re ready, let’s delve into these bad boys.

What are fixed and variable interest rates?

When you borrow or save money, you’ll be told whether or not it’s subject to a fixed- or variable-rate interest. Here’s a quick overview of what these terms mean:

• Fixed-rate interest – These rates don’t change for the duration of the agreement, be that the repayment period or the time in which you keep your money in a savings account.
• Variable-rate interest – This means that the interest rate can (and probably will) change over time, often in line with measures of inflation, like RPI (Retail Price Index).

What is RPI?

RPI stands for Retail Price Index, and is a measure of inflation. Ultimately, it tracks changes in the price of a set ‘basket’ of items that consumers regularly buy.

Some things, like milk and bread, will always in the ‘basket’, whereas other things, like gin, will come and go based on popularity. Over time, the changes in the prices of the items in the ‘basket’ are used to determine the rate at which inflation is occurring.

Ordinarily, you wouldn’t need to worry too much about RPI – but as we said above, your Student Loan accumulates interest at a rate that can be influenced by RPI.

What is AER?

AER stands for Annual Equivalent Rate – the official rate of interest for a savings account. This represents how much interest would be paid over the course of a year, and allows an easy comparison between multiple accounts (particularly as different accounts may pay interest at varying intervals).

Interest on a savings account may also be advertised as a gross rate. The specific differences between gross and AER aren’t really worth understanding, but the gist is that AER takes into account compound interest, whereas gross doesn’t.

When the interest on an account is paid annually, the gross rate and AER should be the same, because there’s no compound interest. If the interest is paid monthly, AER will be slightly higher than the gross rate as it accounts for the interest gained on the existing interest (e.g. 5% gained on the initial amount, plus 5% on the 5% that was gained last month).

The only thing you need to remember is that you should never compare AER with gross rates. AER and gross rates are different things, so you should only ever compare AER with AER, and gross with gross.

What is APR?

APR stands for Annual Percentage Rate. This refers to the official rate at which you’ve borrowed money including any associated fees, essentially giving a complete picture of how much the debt will cost.

It’s important to remember that APR does not necessarily equal the interest rate, as it also includes fees. For example, if you borrowed money at 11% APR you could have an interest rate of 9%, plus additional charges which are the equivalent of an extra 2%.

This seems complicated, but it allows a fair comparison between lenders (otherwise they could advertise a low-interest rate, but chuck loads of additional fees on top to make it more expensive than another loan with higher interest rates).What is representative APR?

You’ve probably heard ‘representative APR’ being blurted out at high speed by the voiceover on an advert for loans. This is just a guide based on the fact that at least 51% of successful applicants will get the advertised rate, while the other (at most) 49% of people could get a higher rate.

Another important APR caveat is that you might never pay the advertised APR.

Lenders will often try to entice you by offering a lower APR for a certain amount of time at the beginning of the repayment period (let’s call this APR1). After this (usually very short) time has passed, the APR will increase (to what we’ll call APR2) for the remainder of your repayments.

Note that APR2 could be a variable rate and may change at some point (although banks can’t just do this willy nilly, so try not to worry about this for now).

As you’ll have two different types of APR throughout your borrowing period, the lender will advertise what is essentially an average figure for what the APR will be until you’ve paid the money back. Since you’re likely to have APR1 for a much shorter time than APR2, the average APR will be much closer to APR2.

In simple terms, the advertised APR can sometimes just be the average APR, with the majority of your repayment period being at a slightly higher rate. Again, while this seems complicated, it does make it easier to calculate and compare the overall cost of borrowing!

What is EAR?

Last but not least, we have EAR – Effective Annual Rate.

EAR is actually very similar to APR, but while APR is only used to refer to products that exclusively lend money (such as a loan or a mortgage), EAR applies when you’re talking about a product that can also be in credit (such as a current account).

You’re most likely to see EAR being used to describe the interest on an overdraft. EAR is calculated using three factors: the interest charged if you’re overdrawn, how often interest is charged, and what the effect of compound interest is on your debt.

Again, if you dive too deep into this you can get lost. All you really need to remember about EAR is what it refers to, what it’s formed of, and that it doesn’t include overdraft fees.

Keen to learn more about your finances? Have a read of our Tips for saving money at university.

Savings account With different top banks in Nigeria, you have to understand what savings account is and how it can help you earn nice interest on your money. There are many different types of accounts you can use:

• Call deposit
• Fixed deposit
• High-interest deposit

It is smart to choose the high-interest savings option that pays interest to you. Such accounts offer the flexibility you’ll love. You can perform the following actions without worrying about losing your interest:

• Withdraw cash when you need it
• Make online payments
• Enjoy different services that don not influence your savings account

Savings accounts allow bank customers keep their money in the bank and earn several percents per year on top of the original amount. So let us see which best bank in Nigeria offers the most interesting options.

Top banks in Nigeria for opening a savings account

These are the main financial organizations you can trust and enjoy for multiplying your original amount of cash stored on the deposit.

1. Diamond HIDA

This financial institution has an interesting proposition called High Interest Deposit Account. It’s flexible, allows withdrawing money (you get 2 free withdrawals) when you need it (you are not forced to pay any penalty if you use only 2 withdrawals). You can also preserve and multiply your finances or invest them into some promising projects.

Diamond HIDA allows Nigerians earning more money when they are saving more. Here are the main annual interest rates you can enjoy as a client:

• 2 percent – when you have less than 100,000 Naira per month
• 4.5 percent – when you store from 100,000 to 999,999 Naira per month
• 5 percent – when you have from 1 to 4.99 million Naira per month
• 6 percent – when you store 5+ million Naira each month

You can see that this savings account is great for citizens who have at least 100,000 Naira to add to their balance. Unfortunately, you cannot open an account with less money.

2. Savings Account DiamondXtra

The HIDA option offered by Diamond bank is not suitable for all Nigerians. Those of you who need a savings account with a small amount of money at the beginning can look at the DiamondXtra savings account that starts with just 1,000 Naira.

As one of the top banks in Nigeria, Diamond bank allows all interested individuals to earn interest on their saving accounts. Here are the main benefits of this offer:

• An account can be opened with only 1,000 Naira on it.
• There is no minimum amount you’ll have to keep on the account.
• The card you’ll get is free to use at all local ATMs.
• You are allowed making 3 free withdrawals within a month.

Unfortunately, if you make 4 withdrawals in the same month your interest will be lost.

READ ALSO: 15 vital money lessons you should have been taught in school

3. Savings at FCMB

Do you prefer using the First City Monument Bank? It also has a savings option for customers who need to save their money for something important or make the funds working and earning some interest. Learn more about the Premium Savings option offered here.

While the financial organization doesn’t require you to keep a minimum amount on your account you still have to add at least 100,000 Naira in order to open your savings account. Still, if you wish to earn the biggest annual interest rate (it is 3.3 percent) you need to make sure your average balance per day is at least 100,000 Naira. If the balance becomes lower than, your earnings will reduce significantly.

Just like many similar savings options, you can’t make more than 3 withdrawals per month or you will lose your monthly interest earning.

4. GTBank Savings Account

This bank offers an option called GTMax. It is an account that allows Nigerians save their money and earn some interest that depends on the amount of their current funds. This savings possibility is not available to everyone because there is a minimum amount required for opening and maintaining your account.

GTMax offers these interest rates per year:

• 2 percent – account is opened with at least 150,000 Naira
• 2.75 percent – you need the minimum of 500,000 Naira to earn this interest
• 3 percent – for people who have at least 1 million Naira to save

All three options require a minimum balance of 100,000-500,000 Naira depending on the account type and percentage earned per annum.

The account can be interesting to businesspersons and companies who need to save money and multiply them. The good thing is that the interest can be earned as long as the minimum balance is preserved. Besides, you are allowed making only up to 5 withdrawals per month, otherwise, you’ll have to pay the fee of 2 Naira per each transaction made during the month.

5. FirstBank Savings Account

Known since 1894, the First Bank in Nigeria offers some interesting options. It has the FirstSavings Plus that works both as regular and savings accounts.

To open an account, you should add 50,000 Naira or more in your balance. You can get about 2 percent of interest rate per year if you keep this minimum balance all the time and make 1-2 withdrawals each month. The interest earning can be lost if you make 3 or more withdrawals from your account within one month.

As you can see, most banks offer the maximum amount in a savings account in Nigeria of 2-6 percent. 6 percent is probably one of the highest rates you can earn per year, while 2 percent is the average amount offered by many banks. Since you know some of the best banks in Nigeria, you can open your own savings account and multiply your earnings on a yearly basis.

READ ALSO: Difference between savings and current account in Nigeria: Which is right for you?

Student usually pass a lot to open a bank account in Nigeria, and it is quite painstaking but with the help of this below simple guidelines, you will find it more easy and efficient.

Before we continue we recommend you read our guide on Current Account Vs. Savings Account: Which is right for you?

What do you need to open a bank account?

Thankfully, you really don’t need much to open your best student bank accounts, after all, you are a student opening a account without any aid from your parent. Here’s the major requirement:

*. Passport ID: Opening any account in Nigeria requires a minimum of two passports, most banks prefer red background, while others don’t. But you can possibly go with any background of your choice.

Meanwhile, they are numerous bank that did not specify any color. So, going with red, purple, white or any random colors might not deprive you of your student accounts. And some just need the two passports for easy opening.

*. Photo ID: You need at least two forms of photo ID: student ID, Departmental/Faculty ID card, N.Y.S.C Identity Card, or School Admission Letter along with driver’s license or National ID or PVC ID card

You are required of two different types of ID for clearance. First, you must come with Student / School ID, School Admission letter, which will serve as a proof of student status. It might also be a letter of acceptance from your university but the Admission letter might serve that purpose.

While on the other end, you are to come with any other ID for more clarification, something like Temporary / Permanent Voter’s card / National ID card or possibly go with your driver license.

*.  A completed application form: Most banks now allow you to apply online for a student bank account, but you will still have to send off supporting documents or take them into your local branch. Documents must be original copies, not photocopies.

Another importance document that is required of you, is a duly completed application form, along with your dual passports, student ID, driver’s license or NIMC, you are good to go.

Recommend: Tips for saving money at university

Why you need to get a student bank account?

After passing through serious procedure to open your first account, you might find it absurd to get a separate new bank account, called Student bank account. As a student, this account can help you do more perfectly in the future and help your academic session.

– Saving up for your future: Most banks gives you the ability to save up for your future, but as a student.

– Few Banks offers loans to students.

Most Nigerian banks don’t support the following apart from Student loan:

– Largest overdraft: An arranged over-draft is a simple way of borrowing money through your current account. But a student account overdraft helps you borrow money but with little or no interest.

As student, who are always on budget, there are trying times. Times when you may need help from anyone, anywhere or any place, that is where Student bank account holder comes in, look for the largest and get the biggest interest-free one you can find.

As aforementioned, don’t be deceived by bank’s free gifts or complimentary, try to check out the future over-draft, the current offers might not be the same as next three, check out the next three – four years charges.

– Don’t need large over-draft: You might be one of the students, who is not looking for any big over-draft, you can actually do something more spectacular.

Before opening a student account, you may have gotten yourself a saving account, after getting your student account, you can apply for it then take some of it out (interest-free) and balance up your savings account, which will in return earn you some interest on the borrowed money whilst you’re a student.

The interest on Saving account is not much of, just few currencies but as a student, every single penny is worth thousand of them. And you really don’t need much to get your interest.

– You will repay them later: This is the most distressing moment, hence, don’t consider the loan as a free money. You will have to balance them up later. Most banks automatically turns your student account into a graduate account.

It is advisable to know the bank repayment condition before applying for one. And also ask more questions, when you visit the bank, that is getting the basic understanding. Remember that the bank 0% interest period is not forever, it only lasts a certain number of years after you graduate before interest charges set in. You’ll need to starting paying up before you start getting inferior by higher repayments.

Whichever bank you choose, remember that you may need their help if you have money troubles later on, and they will likely offer you as much support as they can. If you are ever in financial difficulty it is a good idea to contact the bank and discuss it with them.

When to open Student Bank Account

Fortunately, if there is any little possibility to open the student bank account right away, then it is a good idea, don’t hesitate, go for it. It is a good idea to open a student account before you start university.

As students, you might want to apply for loan at least, once or more times. Getting a student bank account now requires few documentary from yourself and school, but if there is a means of bypassing the school’s / student ID, then go for it.

This will definitely help your financial life as a students. Especially if you are applying for a student loan as the money will be paid directly into your bank account.

Best Student Bank Account in Nigeria

There are a lot of Nigeria Banks today, that offers more incentive in opening an account with them. But don’t be too gullible, as the offers doesn’t stand much longer. You must have followed the above instruction to choose the best student account.

There are different types of student bank account, includes: Saving and Current student bank account. Below are the top best 5 student bank account to open in Nigeria. There are numerous banks in Nigeria, we have the big names, the microfinance banking system and many others. But we will list out the best for each.

FCMB FLEXX

The First City Momentum Bank offers an intriguing student account with amazing bonus. And fortunately, the FCMB FLEXX Student account target both teenagers, o-level holders, undergraduate, from the age of 16years to 25years.

It is much like a savings account designed for Youths, Corpers and Young Professionals, which also involves students too and it is a naira denominated account.

Benefits of FCMB Flexx Student Accounts

– With just N1,050, you can open the account
– Allows lodgment of dividend warrant of up to ₦20,000
– Zero Minimum operating balance
– Free E-mail transaction notifications
– Free monthly electronic statements
– Branded MasterCard debit card
– Entrepreneurship/Employ-ability Forums
– Interest on savings
– Access to Internet/Mobile banking

To get a dignified FCMB Flexx student account, you can go with the following:
– Completed account opening form/ Online account opening platform
– 1 passport photograph
– Student ID or Appropriate document issued by school for the current session or academic year

Visit FCMB Flexx

Diamond S.W.A.G

Another amazing place to get your student accounts is from Diamond S.W.A.G. The accounts target both students of Tertiary Institutions and Corps Members. It helps you save a lot of money, serves a saving account.

Benefits of Diamond S.W.A.G Account

– Trendy International Debit card
– Enjoy great discounts when you shop with your S.W.A.G Card on selected merchant sites e.g. Adiba.com
– Eligibility to win PocketMoney4AYear and cash prizes on other Promos running from time to time
– Minimum opening balance of ₦525
– Free and secure monthly statements via email
– Diamond Bank cheques can be paid into account
– Credit interest payable monthly
– Free Online Banking
– Access to the Mobile App
– 50% discount for first issuance of our trendy Debit Card
– Limited account opening documentation
– Reliable and convenient access to Online & Mobile Banking
– Offers competitive interest on your savings; payable monthly
– Exclusive access to Diamond Bank Youth Portal (Coming Soon!)

To get a certified Diamond S.W.A.G student account, you need the following:

– Duly completed account opening form
– A minimum of ₦525.00 to get your Debit Card after account opening
– One passport photo of Student / Corp Member
– Student /Departmental/Faculty ID card or N.Y.S.C Identity Card

Visit Diamond S.W.A.G

GTCRea8 Account

With the GTCRea8 e-savers bank account, you can enjoy a fully due Mastercard, make transfers with online internet banking. GTBank eSavers account gives you extra funds to pursue your dreams of 2.5$ yearly interest on your savings.

While the GTCRea8 e-savers bank account is one of a kind, offering an Education Support Grant for students that are struggling, something that student bank account is meant to do. But you need to qualify for the Gtbank GTCRea8 e-savers bank account.

It targets both teenagers from 16years to youth of 25 years, this is quite long enough for a substantial time to go through school. And it add values, (interest) to your savings.

Benefits of GTCRea8 e-savers bank account?

– MasterCard
– Payments of cheques and dividend warrants, to the sum of N100,000, into your account
– 2.5% interest per annum on account balance
– Bank 737 services
– Unlimited cash withdrawals in our banking halls, ATMs within Nigeria and abroad; also cash withdrawals on ATMs abroad with MasterCard logo
– Internet Banking
– Cash withdrawals in branches
– Lodgement of cheques and Dividend warrants subject to a maximum of N100,000 per instrument
– Presentation of regulatory ID ( Driver’s License, National ID Card, Permanent Voters card or International Passport) when the cumulative balance in your account is above N1 Million

What is required of you:
– Duly completed application form
– A valid means of ID i.e. School ID card or School Admission Letter along with any other form of ID card
– One passport photograph

Visit Gtbank GTcrea8

Eco Bank Student Accounts

This account is much like a Saving accounts, you can perform all the vital commands and you can access most portal as a student. Offers mobile banking, internet banking, Debit card, free alert and bank account balance.

The above statement is only limited to the Saving accounts but for the current account, you can do much more for easier banking. You are required of the necessary document to do this, like 2 passports, student ID.

Visit Eco bank

First Bank Student Accounts

There are different types of First Bank for students, there is the FirstInstant account and the Xplore First, both target students from 18 years. The both targets youths, the Xplore First is between the ages of 18 – 29 years while the FirstInstant account is for those who wish to open a no frills account to start their banking experience with FirstBank and it target 18 years and above.

FirstInstant Bank Benefits

– Both accounts needs a minimum opening balance of N1000
– Operating balance of N500 First Instant and N200 for Xplore First
– Maximum cash deposit is N50, 000 per transaction
– Maximum cumulative balance on the account at any point in time is N300,000
– Attractive interest rates
– The account can also be operated as a Salary Account.
– There are no limits to the number of withdrawals you can make from the account in a month
– You get a debit card instantly as soon as you open the account
– This account type is for those who carry out lower transactions with the bank

Xplore First Bank Benefits

– This account has a minimum opening balance of N1,000.
– Minimum operating balance of N200.
– Automatic migration to regular savings account when the account holder graduates.
– Flexible means of identification.
– Discounted cost of Verve Debit Card.
– Cheques/Dividend warrants lodgement.
– Participation in all savings loyalty campaigns.

How to Apply?

To open a Xplore First Bank account, you need to visit the any of the bank branch and the FirstInstant bank needs the following:
– 2 passport photographs
– If you are opening this account online however, you do not need any documentation to open the account.
Visit First Bank

They are numerous other best student bank accounts, UBA offers the same, in Nigeria. Having a student bank account in Nigeria is something, that will help you get a little coins for your future.

Read: The Simple Ways To Save Money as a Nigeria Student

When it comes to operating bank accounts, most small business owners don’t know the key benefits and differences between a current account and a savings account. This post is aimed at helping business owners better understand the major differences between these two types of bank accounts mostly offered by Nigerian banks to individuals.

Also Read: How To Get Student Loan in Nigeria: The Ultimate Guide.

Current Accounts

A current account is designed to facilitate regular or frequent transactions. It’s more suited individuals who are required to carry out frequent money transfers like businessmen, firms, companies, organizations, public enterprises, etc.

• Current Accounts derive their name from the purpose they are suited for, regular transactions.
• This type of account is more suited for users like firms, companies, public enterprises, businessmen, etc.
• Currents accounts do not earn any interest due to the fluidity they offer.
• Current accounts usually do not carry a limit on the number of transactions which can be made.

Savings Accounts

A savings account is designed to encourage and promote savings. A savings account is an ideal choice for any individual who earns a steady or regular income as salaried employees. This type of account is also ideal for those who have any short-term financial goals to meet such as a future vacation, financing a wedding, buying a car etc.

• A savings account is designed with the primary purpose to help you save.
• This type of account allows the holder to deposit money as is convenient, on which the holder can earn interest.
• A Savings account may be opened by an individual or jointly and requires the holder to usually maintain a pre-specified amount as a minimum balance.
• Interest rates earned on Savings Accounts range anywhere between 4% to 6%. These accounts do usually carry the facility of issuing cheques.

Also Read: Small Business ideas you can start at the Nigeria university?

Which Bank Account Should I Get?

There’s no exact recipe you can follow when it comes to choosing a bank account for your small business. No two businesses are alike, so every business owner will want different things from the bank and the type of bank they choose.

A savings account differs from a current account in many ways and aspects. Both these accounts address different financial needs of the user, helping in better money management. Current accounts are generally best for managing day to day transactions while savings accounts are a safe home for keeping your extra cash and make some interest on your savings.

Follow us on Twitter or visit our Facebook page for more resources to grow your business online.

Financial education finally became part of the national curriculum in September 2014 – too late for current uni students already reeling from £9,000-a-year tuition fees. Yet if there’s one group who would have benefited from lessons in managing cash, it’s us lot.

Thankfully, it’s never too late to pick up the skills needed to make money work for you. We asked the Save the Student community what they wished they had learnt about personal finance as teenagers. We’ll be touching on everything from how to invest properly to defending ourselves against the supermarket’s marketing ploys.

‘If I could be in school again, I’d want to learn…’

1.    How to make money last

If you’re having trouble making ends meet, it boils down to simply earning more or spending less. However tempting it is to embark on a mass shopping spree whenever our student loans or wages come through, paying the rent and setting aside cash for bills must come first.

When shopping, beware of the raw emotion and thrill tied up in buying stuff. Avoid impulse purchases, learn the supermarket’s tricks, and take time to consider exciting big-ticket purchases, such as a laptop or car.

It’s also crucial to keep on top of debt – such as that pesky overdraft and credit card – as going beyond your limit or delaying payment now means nasty charges (and a knock to your credit rating) later!

That said, there is one exception to the rule. You may be eager to clear away your student loan as soon as you’re in work, but it’s very low interest borrowing, some of which may even be written off (say what?!): don’t rush to pay it off ahead of other debts.

Read our guide on the Tips for saving money at university

What’s the minimum you need to live on?

There’s no clear-cut answer to this. The cash you need to live in London will be vastly different to what’s required for a comfortable lifestyle in Leeds.

So the first step is seeing whether you’re in the black, or in the dreaded red – much easier if you follow our budgeting steps and download our nifty spreadsheet. You can also see what the average student spends here.

The aim of the game is avoiding nasty surprises by planning ahead. Got Mum’s milestone birthday coming up? Pop it in your spreadsheet, set a reminder on your phone, and start saving for her present now. Building up a contingency fund is also a bonus for unexpected costs, such as last-minute group holidays or fixing another broken iPhone screen.

Read: 8 simple money saving tips

2.   The art of haggling

There’s no shame in haggling to get the best deal when you’re buying something. But unless you’ve got years of experience as a market trader, you probably weren’t taught how to barter like Del Boy in school. Thankfully, we’ve got a useful guide on haggling like a pro.

While you should always ask for a student discount, the opportunities for a bit of bargaining are endless. For example, head to a farmers’ market as the day comes to a close and take home some gourmet stock for less than Tesco Basics.

One of the best times to get haggling is when your mobile phone contract is about a month or two away from expiring. Just ring up, ask for the cancellation department, pretend you want to leave them and turn on the charm. Free texts, extra data, a better phone and cheaper plans are all achievable with determination and patience. Arming yourself with research on better deals from their rivals is a sure-fire way to guarantee results.

3.   The real dangers of debt

Some debt is unavoidable and even necessary. Mortgages are a long-term way to spread the cost of living or investing in a property over time. The same applies for tuition fees and maintenance loans – going to university would be impossible for many students without them.

That said, the dangers of some costlier types of borrowing are often skipped in school lessons: credit card debt can spiral out of control if you don’t keep on top of repayments, while predatory payday loans come with astronomically high interest rates and eye-watering fees.

Managing personal debt is probably the most vital lesson that most Britons should have learned, if these recent stats are anything to go by:

The Citizens Advice Bureau, the National Debtlineand StepChange are all great places to go if you need free and confidential advice on money problems from trained councillors.

5.   Interest rates for saving and borrowing

Interest rates are set by the Bank of England and banks, with the former setting the ‘base rate’ and the later adding more depending on the service offered and how generous they’re feeling.

Generally speaking, interest rates have recently been at an all-time low since March 2009. Increasing the base rate would be harder on borrowers (not the tiny people kind), but great for savers.

A goody-two-shoes with £20,000 of savings might earn 3% interest on top of their cash every year, while a shopaholic maxed-out on their credit card with a £3,000 limit could be paying 20% interest on the cash they’ve borrowed.

Some credit cards, overdrafts and mortgages often advertise low interest rates, but there’s no guarantee you’ll get these deals. That’s because the best rates are usually reserved for people with the highest credit scores.

Read: Current Account Vs. Savings Account: Which is right for you?

6.   How credit cards can be good for you

There are plenty of pitfalls to sidestep when owning a credit card – not least a debt spiral – so you should never have one if you know you cannot afford the repayments. But, when used in the right way, they can be quite beneficial.

Each credit card offers different features and terms, but generally they can be helpful for cash flow and for making large purchases you know you can pay off at the end of the month. If you’ve got the self-discipline to settle in full (not just the minimum payment) when the bill arrives, you typically won’t pay any interest on the purchases made. You’ll also build up a good reputation with credit referencing agencies, and generally enjoy greater financial freedom.

There are also plenty of perks for credit card customers out there, such as: Airmiles to put towards a holiday, cheap foreign exchange, cashback and fraud protection. Just don’t fall for these without considering the cost of using the credit card or else you could quickly find yourself paying over-the-odds for the benefits.

Some people – known as ‘credit card tarts’ (not as much of an insult as you might first think!) – regularly switch between banks and credit cards to take advantage of the perks and freebies on offer and to extend the 0% interest period on existing balances.

Our guide to student credit cards goes into more detail to help you make an informed decision and avoid getting into bad debt.

7.   Shop around for the best financial products

Making the right choices with everything from car insurance to energy bills, mortgages to pensions, and savings and investments, matters. If you don’t spend a little bit of time doing your research it could cost you serious dough, affecting your financial well-being in later life.

For example, do you know how long your arranged 0% student overdraft is for, and how soon after graduation you’d have to start paying it back? Are you aware what the fees and interest rates tied to your unarranged overdraft are? Do you know when your savings account will drop to a measly 0.10% interest?

Remember you should switch whenever you can to get the best and latest offers. As you’re probably (more than) aware, there are lots of price comparison websites to help – comparethemarket.com and gocompare.com among them.

So the lesson here is always make sure you’re on the ball to avoid hefty charges and missed opportunities to fatten your wallet.

8.   Tricks used by the supermark

If your only experience of supermarkets so far is throwing an insanely large pack of Skittles into your mum’s trolley, you could be ill-equipped for smart student shopping – with overbuying and wasting food being the most common supermarket sins.

Multibuy offers can be mostly to blame here: two 500g bags of rice could be on offer for £2, while the 1kg bag on the shelf below costs just £1.50. You might also be tempted to ‘buy one get one free’ on something you wouldn’t usually buy, and end up throwing the extra food away because you bought too much.

We reveal 9 of the dirtiest supermarket tricks. Every penny saved is a victory for your wallet!

9.   Why checking your statements matters

Regular check-ins are vital to keep tabs on any payments you’re expected to make (and penalties for missing them), any interest you earn, and for weeding out direct debits or subscriptions you can ditch (not watched Netflix since Breaking Bad?). And if you spot any charges for things you don’t remember buying yourself, get on to the bank pronto.

Think of it as a health check for your banking products: if they’re not helping you manage (and grow) your money shop around for better deals.

Keeping an eye on statements also shows you month-on-month whether you’re balancing your books or going for broke. If you’re nudging the red more often than you’d like, this is where you can see just how much you’re blowing on Candy Crush boosters and take steps to rein it in.

Some banks only store a set number of statements online, or for a limited period. Download your own copies each month or they may charge you to send you paper copies later on!

10.        The magic of Compound Interest

Compound interest is a powerful thing – it just depends on which side of the calculator you’re sitting. This interest-ing (sorry!) concept can grow the money you start with quicker than expected, but make it harder to clear money you owe. Why? Because compound interest – as the name suggests – multiplies over time by adding interest on interest.

How simple interest works

You stick a pile of cash in the bank (called your principal) and earn a set amount of interest on the original amount you put in, as a one-off payment which you then take out. Bada boom. Simple.

How compound interest boosts your balance

If you leave any interest earned from your initial stash in the account, then the new larger amount continues to earn interest. And as it happens over and over again (called compounding) your cash pile grows faster and faster, just like a snowball.

As you can see, the earlier you save (even just a small amount) the more you’ll benefit from compounding over your lifetime. Leave £1,000 in an investment or savings account earning 10% interest a year (yes, rare, but we’re making a point) and you’ll have £7,000 after 20 years… from doing nothing.

How compound interest bulks up debt

It works the same when you owe money with interest. Folk who lend you money to buy things, whether credit card companies or car finance people, are literally making money from money too. Dangerously for us this can lead to a debt spiral, as the more you borrow the more you owe exponentially.

So the graph above can apply to debt too: borrowing £1,000 at 10% a year would build up to a terrifying debt of £7,000 after 20 years. Ouch!

While you can’t do much about borrowing rates, you can protect yourself better by being aware of the long-term effects of compound interest. Plan your spends, budget for payback and get help if you’re worried the costs are getting out of hand.

When you receive a lump sum that you don’t need immediately (eg. a grant or student loan instalment), siphon off some of it to an easy-access ISA (tax-free savings account). Compound interest will work its magic and leave you with a little more money in the pot!

11. Time isn’t the only route to money

Most of the population trade their time for a pay cheque, with many of us despising the 9-5 grind that comes with the territory. The smart (wealthy) cookies out there have realised that your income doesn’t always have to be generated from your limited and valuable time on this Earth.

In fact, if you want to be rich or just have a good work-life balance (who doesn’t?), you better be thinking about passive income streams that bring home the bacon without you leaving the house.

Your starters for ten include: saving and investing (and our friend compound interest), owning/renting out property or land, setting up a business, or selling multiple copies of something you only had to create once – think apps or books.

It’s not an overnight route to early retirement and may well require a lot of time, balls and brass to bring it about. But it’s all very possible once you realise life isn’t all about the 9-5 routine we’ve been schooled into following.

Start small, save what you can, get skilled or just get inspired.

12.        Pensions matter before your first grey

We don’t know about you, but we were more about Pop-Tarts than pensions at school. Forget retirement: even the weekend seemed a long time coming. So. Just what is this pension malarkey?

In a nutshell: a pension is a kind of savings account where you squirrel away money to receive again when you retire from work and no longer have regular income from a job.

The government provides a State Pension once you’re 60-something (pension age varies by gender and is likely to increase later on), but you’ll need to have paid enough National Insurance to get the full amount. Either way, it isn’t always enough to live on, never mind get that yacht you’ve had your eye on.

You’ll probably also want to start paying into a private pension plan early into your career. The more you save now, the more comfortable you’ll be when you retire, whether you use the cash for heating, health care or holidays. But again, just bear in mind that you can’t get at any of it until retirement.

There are more flavours of pension fund out there than you can shake a log at. There’s also the Workplace Pension, where part of your salary is put towards a pension before you get paid, with some employers matching whatever you put in – extra money for free!

Now’s also the time to start thinking about any passive income you can kick-start, because, unlike wages, it doesn’t depend on you being able/available to work for your money.

13.        Whether you should buy or rent a house

Living away from home can give you a taste for freedom. You know, watching TV in your pants, or building bookshelves out of things you found in a skip.

At some point, though, you’ll start to wonder whether things could be sweeter if you actually owned your own place. And by sweeter, we also mean cheaper.

The key to owning for most people is something called a mortgage. Mortgages are simply the money a bank loans you to buy a house, although in practice they can be complicated. They’re a bit like taking on the mother of all student finance loans: you’ll be making monthly payments for 20-odd years, and you’ll also pay for the privilege (land searches, solicitors, arrangement fees and interest).

The earlier you pay off a mortgage the more years of free shelter you’ll have later: start saving for a deposit now. No lenders nowadays will loan 100% of a home’s value, plus the bigger the deposit you slap down the better the deal you’ll get, and the less you’ll have to borrow (and pay back). Don’t think mortgages are just for married types, either: it’s possible to get a mortgage with friends or other family members. Whether you’d want to is a different matter.

To own or to rent?

Owning is almost always cheaper each month than paying rent. Plus, any money you put in, whether towards your mortgage or interior decorating, benefits you instead of your landlord. It could even become an income stream if you let instead of live in a house (utilising ‘buy-to-let’ mortgages).

But you don’t have to own to live the good life. Renters may be able to put away savings that home-owners might have to bust on leaky pipes. You can also move house just because you feel like it, and don’t need to worry quite so much about periods of unemployment.

Renting is generally a good idea at the start of your career whilst you’re figuring out where you really want to live and shudder at the idea of any big-time responsibility. Selling a house isn’t cheap. As always, cost it out and see what makes most sense for you.

14.        Don’t underpay or overpay tax

Did school teach you that the first few grand you earn each financial year is tax-free? That’s your personal allowance (PA) and it’s updated every April, the start of the tax year. For 2015/16, you won’t pay a penny of tax on the first £10,600 you make.

Income doesn’t just mean wages, although they’re the most obvious source. Taxable income – the kind you’re expected to pay tax on – also includes interest from bank accounts, profit from selling any goods or services, and even some State benefits.

However you earn money, you’ll only pay tax on anything you make over the PA: 20% on the difference up to around £30k, with higher rates on anything you earn above that.

Most students won’t come close to earning more than their PA but the way income tax is collected through wages means you could already be overpaying tax on a part-time job. Check your payslips and tax code and, if you think you’re being overcharged, get on to HMRC to get a refund!

At the same time, don’t ever be tempted to avoid tax that you owe: HMRC do know who you are, and they will find you, and they will… not be very nice.

15. How to invest properly

Learning to invest is the key to making more of your money and building real wealth. Very simply the lesson here boils down to: get rich slowly, diversify (reduce risk), minimise leakages (fees) and eradicate all emotion from investment decisions.

Now you’ve probably heard of ‘fund managers’: people who happily take your money and pick companies and other assets to invest it in on your behalf… but not before they’ve had a slice of your pie in the form of fees and commissions.

The choosing, buying and selling of individuals stocks or investments is called ‘active investing‘. Here the goal is typically to make big returns quickly, so it can be a lucrative way to trade. However this strategy tends to attract high risk and high costs whilst continuously sapping your time and energy.

Let us introduce you to something called ‘passive investing‘, the other side of the coin that you’ve probably never heard of. Rather than trying to beat the market by basically gambling that shares in a certain company will go up, ‘index funds’ track the market as a whole (its index).

For example you can invest in the UK’s FTSE 100, which means you’re banking on the very best companies to grow collectively. They don’t promise quick wins but instead, as the market grows, so do your returns.

With no fund manager to pay for, index funds are cheaper to buy and hold. They also diversify your risk and remove ongoing decision-making and cold sweats at night.

Historically, as the chart below shows, the top UK companies have performed well and are growing overall. There are very few fund managers who have outperformed the markets over the long term, and overall they represent a very poor investment choice.

FTSE growth since 1980

You can invest in an index fund through an online broker, but make sure you’re getting the best deal by checking this table by Monevator.com. There are then lots of index funds to choose from, such as Vanguard which are typically the cheapest. All you need to do is stump up some cash, sit back and leave it.

If all this has got your attention and you’d like to know more, you can read this article and check out Andrew Hallam’s fantastic book: The Millionaire Teacher.

If you can’t spare the cash, or are already in debt, it’s not the right time to be investing. Having said that, stashing away what you can early in your life will put you in a very good financial position later in life.

The bell’s ringing, so that’s all for today! We’ve only touched briefly on some pretty major personal finance topics to give you an overview of the vital lessons missed in school.

It’s now time to do some of your own homework and equip yourself with knowledge that will ensure you have greater financial freedom for the rest of your life! Start by downloading our free guide to student finance.

You don’t understand what I’ve been saying for the past few minute?

Read: Banking jargon explained