Top-tier student Banking Accounts Offered
Choosing the right student bank account can significantly impact your financial management during your academic years. Here's a rundown of some of the top offers and features from leading UK banks, helping you make an informed decision.
Competitive Overdrafts
Several banks offer interest-free overdrafts to students. For instance, HSBC provides a £1,000 interest-free overdraft in the first year, which may increase based on credit record. Bank of Scotland offers an overdraft of up to £1,500 in the first three years, and £2,000 in years four to six. Co-op offers an overdraft starting at £1,400, increasing to £1,700 in the second year and £2,000 in the third.
Cash Bonuses and Rewards
Many banks offer cash bonuses and rewards as incentives for opening a student account. The Nationwide FlexStudent bank account offers a £100 cash bonus and £120 in Just Eat vouchers, while Lloyds Bank's student account provides a £100 cash bonus and up to £90 in Deliveroo vouchers. Barclays Student Additions Account offers an interest-free overdraft of up to £1,500, and NatWest's Student bank account provides an £85 cash bonus and a free four-year tastecard.
Savings Accounts and Rewards
Some banks offer savings accounts with competitive interest rates. HSBC's student account provides access to a 5% regular savings account, while the Santander Edge Student current account comes with access to a 5% regular savings account for the first 12 months, given you pay in up to £200 each month. The Nationwide FlexStudent bank account may make students eligible for the £100 Fairer Share payment.
Additional Benefits
Other benefits include fee-free spending when using a debit card abroad (Nationwide FlexStudent bank account), access to member-only products like the 6.5% Flex Regular Saver (Nationwide FlexStudent bank account), and up to 15% cashback with Cashback Extras at some retailers (Halifax's student account).
Prize Draws
The Santander Edge Student current account offers a prize draw where one student can win £100,000, with every eligible student receiving at least £20.
Factors to Consider
When choosing the best student bank account, consider factors such as low/no fees, ease of access, helpful features, and potential interest or rewards. Accounts should ideally have no monthly fees, no overdraft fees, no or minimal ATM withdrawal fees, and no minimum balance requirements. They should offer easy access via mobile apps, online banking, and a wide network of ATMs and branches close to where you live and study. Useful features include budgeting tools, spending trackers, overdraft protection, fee refunds, and the ability to have multiple account types under one platform.
In summary, the best student bank account should combine low/no fees, convenient access, helpful features, and potentially interest or rewards, while meeting your personal circumstances like location and ease of account opening.
When making an informed decision about a student bank account, one must consider factors like savings accounts with competitive interest rates, such as HSBC's student account offering a 5% regular savings account. Additionally, personal-finance management can greatly benefit from banking-and-insurance services that offer prizes, like the Santander Edge Student current account's prize draw where one student could win £100,000.
