Finance: what new apprentices need to know

Published on 22 August 2018

Are you starting an apprenticeship soon? This quick guide has the key information you need to know about your finances.

Current account
Opening a current account is vital – you’ll need a current account to be paid your wage/salary from your apprenticeship.

Current accounts have many different features and benefits, and it can be overwhelming if you aren’t sure what you’re looking for.

If you use your mobile phone quite often, you should look for a current account with a mobile banking app as well as Apple/Google Pay as well as the ability to send payments digitally (services such as PayM)

To get started, have a look on the bank’s websites for further information – many banks let you apply for current accounts online, or you can arrange for an appointment at your local branch.

A lot of current accounts don’t cater for apprentices, which is why we created our Freedom Apprentice Current Account, exclusive for apprentices - find out more.

Start saving
It’s a great idea to start saving your hard-earned money as soon as you can, and to get into the saving habit. The main types of savings account are:

Instant access
An instant access savings account means you can usually access your money whenever you need to, but this means the interest rate is typically lower than other types of savings accounts.

Instant access accounts usually have a minimum balance that needs maintained, or the account gets closed. Check with the savings account provider what the conditions are.

Regular saver
If you are happy to leave your savings in the account, a regular saver type account means you’d usually get a higher interest rate than an instant access account.

However, if you need to withdraw money there can usually be a penalty or loss of interest earned on the account – check with the provider what the terms and conditions are of the account.

If you can commit to saving a minimum each month, it’d be a great idea to open a savings account and set up a regular payment so you’re at least saving a small amount each month.

If you save as little as £20 a month, this would add up to £240 within a year!

If you open our Freedom Apprentice Current Account, you'll get access to a preferential savings rate with our eSavers account that's usually exclusive to Cumberland Plus account holders - find out more.

Make the most of discounts
You’ll want your money to stretch a little bit further, and using discount codes is a very easy and effective way to do this.

Websites such as Money Saving Expert are great at providing you with these.

Cash back websites such as Quidco are also a great way to purchase what you would’ve anyway, but also to earn money back on your purchases.

The NUS Apprentice Extra card offers various discounts with high street shops, and costs £12 for 12 months.

You’ll be entitled to 10% off many high street shops – perfect for wanting your hard-earned money to stretch a little bit further! Visit their website to find out more information and cost.

Starting an apprenticeship is a very exciting time, and it can usually be the first time you've earned a wage/salary.

Book an appointment at your local branch if you'd like to find out more about our current and savings accounts.

More questions?

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