With the academic year coming to an end many students are busy celebrating their summer of freedom, but HSBC UK is already looking ahead to September when freshers will be packing up and leaving for university by releasing its new Student Account.
This student account is restricted to new university students for the 2019/2020 academic year and offers a £100 cash incentive, which is paid within one week of account opening. It is available for first-year students and apprentices (those with a conditional university place or a confirmed apprenticeship on an accredited scheme at Level 2 or above). HSBC UK revealed that it is offering the cash incentive as feedback from students the bank surveyed showed cash is king when it comes to their preferred incentives to open a bank account.
In addition to the cash incentive, another change HSBC UK has made is to make this student account available now, meaning students will not have to wait until after they receive their A-level results to open the account. By offering the account early, the bank believes this will help students get their financial arrangements more organised.
The HSBC Student Credit Card has a rate of 18.9% APR based on an assumed credit limit of £500. It includes the incentive of earning cashback on purchases made at the cardholder’s favourite shopping brands. The card is restricted to those who hold an HSBC Student Bank Account and who have been a resident in the UK for at least three years. Meanwhile, HSBC Regular Saver is a 12-month savings account that allows savers to deposit between £25 to £250 per month via a standing order, to a maximum of £3,000. At the end of the 12 months, the balance is transferred into an Instant Access Savings, Flexible Saver or Premier Savings account.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Budgeting is going to be a vital skill that every student will need to learn when they leave home. Thankfully, there are many online tools and mobile apps that can help them keep on top of their day-to-day finances. Socialising and shopping for educational materials can all add up to an eye-watering cost, so it’s a good idea to consider a part-time job for a bit of income.
“Students would be wise to consider a student account with a generous interest-free overdraft, but they must use it sparingly. It may be tempting to use it all, but it will need to be paid back eventually. If students start to struggle with money, they must seek out financial support – either by visiting a local bank or building society branch, speaking with family, or contacting a debt charity.”
Fiona McCaffrey, HSBC UK’s head of customer propositions, added: “We have listened to what students really want when opening a current account. We are giving them the flexibility to decide for themselves what is important to spend it on, whether that is a subscription to a streaming service, purchasing books for the terms ahead, or putting it into the linked high-paying Regular Saver account and starting a good savings habit.”
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.