For that rare student breed (those who are actually in credit), we have a canny idea. Opt for the bank account with the largest 0% overdraft, then put any surplus cash into a High Interest Savings Account (tax-free for most students). This means you are earning interest on money that the bank has lent you for free! When added up over the course of your degree, this could amount to around £600. Try to select flexible accounts where the money is easily accessible if and when you need it (AKA instant access). Anyone under 60 entering full-time education for the first time can apply for a student loan of £4,950 with no questions asked about where the money is spent. With this in mind we also recommend taking out a student loan (even if you don't need one), you can take advantage of the 0% interest rate, and invest the cash (not spend it!)

We particularly like Alliance & Leicester's Premier 21 Account which pays an interest rate of 5% fixed for one year on balances up to £1,000 (the catch is that you must credit the account each month, although there is no set limit as to how much you pay in). The rate then drops to a variable rate of 1 per cent, so become a 'Rates Tart' and move your money to the bank offering the best interest rate...

To complicate matters there are also others savings options at your disposal; ISA's and Bonds.

ISA's: Each tax year (April to April) everyone over the age of 16 has an ISA 'allowance' which is the maximum amount that can be saved within a 'tax-free wrapper' (in other words, put where the taxman can't get it!). The current limit is £7,200, up to £3,600 of which can be in the form of cash and can be put in a cash ISA. So what can you do with the other £3,600? You can invest in shares or a shares ISA. You can mix and match this- i.e. you could put all you allowance (£7,200) in shares. The key is no more that £3,600 can stay in cash form. Please note that you could put as little as £1 in some ISA's, you don't have to use your full allowance! However unused allowances don't rollover to the next year, they are lost forever. When choosing an ISA it's usually worth looking just before the April deadline as there tends to be a lot more choice.

BONDS:Why not consider a fixed term bond to invest a superfluous student loan in? Bonds tend to offer better rates than savings accounts however they tend to lock your money away for a longer period of time (they are not instant access). Therefore when considering bonds make sure you have budgeted carefully, and set some money aside for emergencies. Also unlike with ISA'a the interest earned is taxable.