If you have ever been to college, university or some other form of further education, you will no doubt be aware that the banks have a tendency to chase students to open accounts, offering free overdrafts, interest deferred loans and more.  Why do they do this, and who really benefits?
 
The banking industry see those in further education as potential customers for the future, and the sooner they grab you the better.  The average student will probably be forced to get into some form of debt in their further education years, thus many will not really be able to move banks once they have signed up.  This gives the bank in question a big hold over you for a potentially long time, and they can make a substantial amount of money out of you while you struggle to pay off your debts!
 
So who is the real benefactor of this pursuit of students?
 
In all honesty, the initial “investment” by the banks can make life easier for a student in their years of further education, but there is no such thing a free lunch in this world - you will pay for it some time!
 
The banks have worked out how much they could make off you, the chances that you may be successful in the business world and they want to keep you sweet from day one.  While it is very easy to get into debt, it can be very very difficult to get out of it, and you will incur masses of interest and charges - just what the banks like!
 
But why don’t people just move banks when they get into employment?
 
The main reason why people do not  change banks is because of laziness, and the fear of more and more paperwork, potential problems with direct debits, etc.  While many do not realise that a new bank will sort all of your direct debts, etc for you, the fear factor still remains.  That in a nut shell is why the banks make a big play for students - future income!