Managing finances as a university student in the UK can be challenging, but prepaid cards offer a flexible and secure way to budget and control spending. With the convenience of a debit card and the budgeting control of cash, prepaid cards are an excellent financial tool for students.
This article will explore the top prepaid card options for UK university students, highlighting their features, benefits, and any potential drawbacks.
The Top Prepaid Card Options for UK University Students
1. Revolut
Overview
Revolut is a popular choice for students due to its comprehensive app, competitive fees, and additional financial tools. It offers a prepaid card that can be used globally, with features tailored to young users.
Key Features
- No monthly fees: The standard plan has no monthly maintenance fees.
- Global usage: Use your card worldwide without foreign transaction fees.
- Budgeting tools: In-app features help you set budgets and track spending.
- Currency exchange: Exchange money at competitive rates.
- Virtual cards: Additional security for online shopping.
- Savings vaults: Create vaults to save money for specific goals.
Pros
- Extensive budgeting and financial management tools.
- No foreign transaction fees.
- Ability to hold and exchange multiple currencies.
Cons
- ATM withdrawal fees after a certain limit (£200 per month free, 2% fee thereafter).
- Some features require a premium subscription.
2. Monzo
Overview
Monzo is another excellent option for students, offering a prepaid card with a user-friendly app that includes various budgeting features.
Key Features
- No monthly fees: Free to use with no maintenance fees.
- Instant notifications: Real-time alerts for every transaction.
- Spending categories: Track expenses by category to monitor spending.
- Savings pots: Set aside money for different goals.
- Bill splitting: Easily split bills with friends.
- Round-ups: Automatically round up purchases and save the change.
Pros
- Easy-to-use app with intuitive features.
- Instant transaction notifications.
- Savings and budgeting tools.
Cons
- ATM withdrawal fees after a limit (£250 per 30 days free, 3% fee thereafter).
- Limited international features compared to Revolut.
3. Starling Bank
Overview
Starling Bank provides a prepaid card option known for its robust banking features and competitive fees. It’s a full-fledged bank account with prepaid card functionalities.
Key Features
- No monthly fees: Completely free to use.
- Real-time spending insights: Track your spending instantly.
- Savings goals: Set aside money for specific targets.
- Fee-free overseas spending: No fees for international transactions.
- Mobile cheque deposits: Deposit cheques through the app.
- Connected card: Additional card for trusted individuals to use.
Pros
- No fees for overseas spending.
- Comprehensive banking features.
- Easy savings and budgeting tools.
Cons
- ATM withdrawal fees after a limit (£300 per day free, 0.5% fee thereafter).
- Less focus on premium features compared to Revolut.
4. BUNQ
Overview
Bunq is a modern digital bank offering a prepaid card with a focus on flexibility and sustainability. It’s ideal for students who want a card with additional perks.
Key Features
- No monthly fees: The EasyTravel plan is free for students.
- Budgeting features: Set budgets and get insights into spending.
- Sustainable options: Choose eco-friendly cards and plant trees with every €100 spent.
- Joint accounts: Easily share accounts with friends or roommates.
- Instant payments: Fast transfers between Bunq users.
Pros
- Environmentally friendly options.
- Real-time budgeting tools.
- Unique joint account features.
Cons
- Higher fees for premium plans.
- Limited ATM withdrawals (10 per month free, €0.99 per withdrawal thereafter).
5. TransferWise (now Wise)
Overview
Wise is renowned for its low-cost international transfers and multi-currency accounts. It’s an excellent choice for students studying abroad or frequently traveling.
Key Features
- No monthly fees: Free to use with no monthly charges.
- Multi-currency support: Hold and manage multiple currencies.
- Low-cost transfers: Competitive rates for international transfers.
- Real exchange rates: Transparent currency exchange without markups.
- Budgeting tools: Track spending and set savings goals.
Pros
- Excellent for international students and travelers.
- Low-cost currency exchange and transfers.
- Transparent fees and real exchange rates.
Cons
- Limited ATM withdrawals (two per month free, £0.50 per withdrawal thereafter).
- Fewer in-app budgeting features compared to Revolut and Monzo.
Conclusion
Choosing the right prepaid card depends on your specific needs as a student. If you prioritize comprehensive budgeting tools and multi-currency support, Revolut and Wise are excellent options. For a user-friendly experience with strong savings features, Monzo and Starling Bank are top choices. For those interested in sustainability and joint accounts, Bunq offers unique advantages.
Source: Collegesintheuk.com