In theory, there is nothing to stop you taking out cash to use up your overdraft limit straight away. You'll pay nothing on this borrowing, but you can earn interest on the cash by transferring it into your internet savings account.If that sounds like too much hard work, at least choose your bank carefully. The banks all offer freebies, but some are more valuable than others. HSBC's free MP3 player, for example, is good fun, but NatWest will give you a five-year railcard, which is likely to be much more valuable.Maximise your income, too. If you're planning on working during your course - in term time or the holidays - make sure you don't pay income tax unnecessarily. There is no tax to pay on the first £4,895 of earnings this year.
If you are charged tax while your employer's payroll department sorts out your account, you can claim the money back from the Inland Revenue.Finally, students who find themselves getting into trouble need to ask for help as soon as possible. Universities, student unions and the banks themselves all offer free advice on sorting out your finances. It may even be possible to apply for hardship funds or special bursaries from your college.One excellent source of help and advice is The Student Finance Guide, by Sean Coughlan. It is published in association with Ucas, and it is a good investment at £9.99.n n n Save & Spend has received a deluge of e-mails and letters from readers furious that their mortgage providers have yet to pass on the 0.25 per cent Bank of England base rate cut announced earlier this month. We're getting angry too.To be fair, at most lenders that have announced rate cuts, the reductions don't take effect until the end of the month. Several banks and building societies have told us they will cut too, but just have not announced the reductions yet.However, there is an ominous silence in some quarters, including at several providers where lower savings rates have already been unveiled. Rest assured that we will name and shame any lenders trying to cheat their customers..
Thousands of drivers are set to waste money as they prepare to buy a new car in the run up to the introduction of new number plates on 1 September. Price-comparison service Moneysupermarket warned drivers to avoid expensive car-finance deals, amid an unprecedented price war in the personal loans sector. The new "55" registration plates, due to be introduced in 12 days' time, are expected to encourage a sharp upwards spike in purchases of new cars. However, Stuart Glendinning, director of personal loans at Moneysupermarket , warned that while many car buyers were able to find good deals on prices, they ended up handing back their savings by paying too much for finance packages."Most people will look at different showrooms and magazines to research the best price to pay for their car, but they need to watch they don't pay unnecessarily for an uncompetitive loan," Glendinning said. "Accepting the finance deal offered in showrooms, rather a low-rate personal loan, can cost motorists."For example, a driver buying a new Renault Megane for £15,980 would pay an interest rate of 13.8 per cent a year over three years with Renault's own car-finance package. Including a 10 per cent deposit, the car would cost a total of £19,592.
