Derin Clark

Derin Clark

Online Reporter
Published: 22/07/2019

While the academic year comes to an end this week, the next academic year is just six weeks away, which means students haven’t got long to sort their finances out in preparation for the new term. To help students get their finances in order, Moneyfacts.co.uk has drawn up a selection of the top student accounts on the market.

Student account selection table

Provider and account

Interest-free overdraft

Incentives

Bank of Scotland - Student Account

Year 1 - up to £1,500

(0-6 months £500,

7-9 months £1,000

and 10 months+ £1,500)

Year 2 to 3 - up to £1,500

Year 4 to 6 - up to £2,000

Free to register for Everyday offers and It's On Us.

Earn up to 15% cashback from selected retailers.

Barclays Bank - Student Additions

Year 1 - up to £1,000

Year 2 - up to £2,000

Year 3 - up to £3,000

Earn cashback through Barclays Cashback.

Blue Rewards is available as an add-on for £4 per month.

Halifax - Student

Year 1+ - up to £1,500

Cashback Extras - Earn up to 15% cashback from selected retailers.

Credit interest of 0.10% AER/gross.

HSBC - Student Bank Account

Year 1 - at least £1,000

Year 2 - up to £2,000

Year 3 - up to £3,000

£100 cashback on opening for first-year students.

Free 12 months British Cycling Fan Membership.

Student Exclusives website giving offers and discounts.

Preferential savings rates.

Lloyds Bank - Student

Year 1 - up to £1,500

(0-6 months £500,

7-9 months £1,000

and 10 months+ £1,500)

Year 2 to 3 - up to £1,500

Year 4 to 6 - up to £2,000

Free to register for Everyday offers and It's On Us.

Earn up to 15% cashback from selected retailers.

Nationwide Building Society - FlexStudent

Year 1 - up to £1,000

Year 2 - up to £2,000

Year 3+ - up to £3,000

No charges for using debit card abroad.
Credit interest of 1% AER/gross.

Preferential savings rates.

NatWest - Student

Year 1 - up to £2,000

(1-4 months £500,

5 months+ £2,000)

Year 2 to 5 - up to £2,000

Choose one offer from the following: one year free Amazon Prime Student plus £10 Amazon.co.uk gift card, OR free National Express Coachcard, OR tastecard.

Free 24/7 Emergency Cash Service.

Royal Bank of Scotland - Student

Year 1 - up to £2,000

(1-4 months £500,

5 months+ £2,000)

Year 2 to 5 - up to £2,000

Choose one offer from the following: one year free Amazon Prime Student plus £10 Amazon.co.uk gift card, OR free National Express Coachcard, OR tastecard.

Free 24/7 Emergency Cash Service.

Santander - 123 Student Current Account

Year 1 to 3 - up to £1,500

Year 4 - up to £1,800

Year 5 - up to £2,000

Free 16-25 Railcard for new customers.

Earn up to 15% cashback from selected retailers.

Preferential rates, offers and discounts at 123 World.

Credit interest of up to 3% AER (2.96% gross).

TSB - Student

Year 1 - up to £1,510

(0-6 months £510

7-9 months £1,100

and 10 months+ £1,510)

Year 2 to 6 - up to £1,510

Year 3 to 6 - up to £1,510

Credit interest of up to 5% AER (4.89% gross).

The list of student accounts is only a selection. All overdrafts are subject to the applicant’s status. Source: Moneyfacts.co.uk

Commenting on the accounts available to students, Rachel Springall, finance expert at Moneyfacts.co.uk, said: “The latest packages from banks and building societies have remained relatively unchanged since last year – perhaps holding off until nearer the new term in September to attract those students who leave their finance planning to the wire. However, the current incentives could be pulled at any point, so students shouldn’t wait too long to compare the latest packages.

“Students looking for a sweetener may well find HSBC’s offering of £100 in cash up-front, as well as an incentive bundle of Student Exclusives offers and discounts and a free 12-month British Cycling Fan Membership, attractive. Meanwhile NatWest is offering a £10 Amazon gift card upfront, but is also throwing in one year of Amazon Prime Student free or students can instead choose its free National Express Coachcard or tastecard – which may save them more money if they plan to travel frequently or venture out to eat.

“The most generous interest-free overdrafts from the outset of year one are offered by Halifax and Santander, of up to £1,500. It is important that students keep in mind that overdrafts are not guaranteed and it’s vital they use any limit sparingly – overdrafts are a loan and will need to be paid back eventually. 

“Saving up some cash while studying can be difficult because of social and essential spending, so it may be worth getting a part-time job to get some income and using mobile apps like Chip to automatically put aside cash for a rainy day.

“To avoid a debt pitfall, it’s important that students keep an eye on their day-to-day spending by using online tools and mobile apps. If they start to struggle financially they would be wise to seek out some advice, either from their bank or building society, a debt charity or by having an honest conversation with family or friends.”

Disclaimer

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.

blue credit card

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy