TotallyMoney and Moneycomms have released a review of the student bank accounts currently available – here are the best options for anyone heading off to university
A-Level results are due to be released tomorrow (Thursday, August 14) and many students will be wondering which bank account they should get ahead of starting their studies.
TotallyMoney and Moneycomms have analysed the student accounts on offer for those embarking on higher education this September.
Alastair Douglas, CEO of TotallyMoney advised: “If you’re heading off to college or university this September, then it’s worth shopping around and having a look to see if there’s a student bank account out there that might help you save money over the next few years.”
He claimed that “most will try and entice you with an interest-free overdraft, but it’s worth remembering that you’ll have to pay this money back at some point”.
He added: “It’s worth thinking about your finances in general, as you might be taking out a student loan and moving into shared accommodation where you’re splitting bills, and you’ll probably have a thin credit file too.
“So download a free personal finance app to help you budget and build your credit score. That way you could be leaving higher-education with a First Class Masters in managing your money.” It comes after news that Nationwide will pay bonus £760 into accounts of customers who do one thing.
Santander
Douglas shared his thoughts on the Santander Edge account, saying: “The Santander Edge account offers a wide range of perks, which includes cashback at a range of retailers, and a free four year Railcard.
“However, you will need to make this your main account and deposit a minimum of £500 every four months. You’ll also be entered into a prize draw, and you could bank up to £100k.”
If you choose Santander Edge, expect your first year to include a maximum overdraft of £1,500, with the required deposit each term. Year two and three will follow with the same overdraft limits. However, year four will see that amount increase to £1,800, and further still to £2,000 in year five. The incentives include:
• Free four-year 16-25 Railcard (worth £115)
• Access to Santander ‘boosts’ – cashback offers at Greggs, Tesco, Café Nero and other retailers
• Entry in prize draw – prizes from £100 to £100,000 (minimum £20 guaranteed)
Halifax
Douglas continued, stating: “Halifax will give you £100 cash if you open an account and deposit £500 by the end of October, and 15 percent cashback at certain retailers.
“You’ll also get up to £90 in Deliveroo vouchers if you use the card often enough – which could come in handy if you fancy treating yourself to a takeaway.”
The overdraft similar to Santander, with £1,500 for the first three years, differs at the fourth year where £2,000 is offered for year four and five. The benefits of student banking with Halifax are:
• £100 cash if you deposit min of £500 by October 31, 2025
• Up to £90 in Deliveroo vouchers (£15 per month from November to April, with a minimum of 20 card transactions per month to qualify)
• Up to 15 percent cashback with selected retailers including Costa, Just Eat and Sainsbury’s
NatWest/ RBS
Douglas said: “With NatWest and RBS you can get an interest-free overdraft of to £3,250 – but watch out, because you will have to repay it.”
He said the perks include £85 cash for signing up, and a Taste Card, giving you discounts when you eat out. Its overdraft starts at £2,000, and increases to £3,250 in your third year. Along with your account, you will receive:
• £85 in cash
• Four-year free Taste Card (worth £79.99 per year)
HSBC
Douglas stated: “The HSBC student account is a good choice if you’re planning to save, as they’ll pay 5.00% interest. If not, you could get an overdraft of up to £3,000 by your third year of studying.”
Starting at £1,000, the overdraft increases by £1,000 each year. This means that in your second year of University, you will have the option of a £2,000 overdraft, and your third year a maximum of £3,000 – which continues to the end of year five.
With this account you will have access to:
• 5% regular saver account
Lloyds Bank
Lloyds Bank gives you a £1,500 overdraft to begin your first year with, with an increase at your third year to £2,000. This will continue through to the end of your fifth year, similar to HSBC. Lloyds also offers:
• £100 cash if you deposit a minimum of £500 by October 31, 2025
• Up to £90 in Deliveroo vouchers (£15 per month from November to April, with a minimum of 20 card transactions per month to qualify – the same to Halifax)
• Up to 15% cashback with selected retailers including Costa, Co-Op, and Sky
Nationwide
The Nationwide FlexStudent requires the account holder to pay in at least £500 each term, with the promise of an initial overdraft of £1,000.
Increasing up until the third year, you can expect a maximum overdraft of £2,000 in year two and £3,000 in year three. This is available till the end of your fifth years. Other perks include:
• £100 cashback within 14 days of depositing £500 to your account (expiring on December 12, 2025)
• 12 monthly Just Eat vouchers worth £10 each, totalling to £120
• Extra £40 Just Eat vouchers (with 2X referrals for £20 each)
• Commission-free purchases and cash withdrawals abroad
TSB
A more basic account, the TSB overdraft remains at £1,500 throughout the course of five years. Whilst it states this amount increases over the course of the year, you will begin with the standard amount. The account also comes with:
• Credit interest of 5.00 percent AER on balances up to £500
Barclays
TotallyMoney claims it comes with an interest-free overdraft of up to £1,500, with no added bonuses or incentives.
Beginning at £1,000 in your first year, with an initial maximum of £500 when opening, the overdraft is now set to increase to £1,500 in your second year – which will continue to the end of your time at University. Unfortunately, Barclays offer no extra benefits.