Students advised to open bank account now or risk losing out on top deals

With just a few weeks left until the new university semester begins, it is vital for students to take a time out to find a competitive student account.

At the moment many student accounts are offering incentives, however these might not last in the long term, so students are advised to open their new account soon rather than leaving it until later and maybe missing out on the best deals. Students looking for a bank account should look at our student bank account chart to see the best offers currently available.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “There is little time left for school leavers to compare the latest student account packages from banks and building societies before they start university in September. While the perks have remained relatively unchanged since 2018, there is no guarantee these incentives will be around forever, so students shouldn’t wait too long to take advantage.

“One of the most recent perks to be introduced is a free TOTUM card from Bank of Scotland and Lloyds Bank – a discount card that can be used for three years. Students eyeing up free-cash perks may well find HSBC’s offering of £100 upfront, as well as an incentive bundle of Student Exclusives offers and discounts and a free 12-month British Cycling Fan Membership, attractive. If students plan to travel frequently or venture out to eat, they may want to consider the deal from NatWest, which offers the choice of a free National Express Coachcard, a tastecard, or one year of Amazon Prime Student and a £10 Amazon gift card. 

“If a generous interest-free overdraft from the outset of year one is what is desired, Halifax and Santander offer up to £1,500 on their latest propositions. It is worth remembering that overdrafts are not guaranteed and it’s vital any limit is used sparingly – overdrafts are a loan and will need to be paid back eventually. 

“The ability to put some cash aside while studying can be difficult because of social and essential spending, so getting a part-time job and using mobile apps like Chip to automatically save cash for a rainy day could be the best approach.

“To avoid a debt pitfall, students must keep an eye on their day-to-day spending, which can be managed more easily when using mobile apps or online tools. Seeking advice is a must if students start to struggle financially and they can approach their bank or building society, a debt charity, or maybe have an honest conversation with family or friends.”