A new set of A-level results is set to be unveiled today, prompting students to contemplate their choice of bank account as they prepare to kick off their academic journey. Two financial analysis firms, TotallyMoney and Moneycomms, have scrutinized the array of student bank accounts available for those commencing higher education this coming September.
Alastair Douglas, the CEO of TotallyMoney, has emphasized the importance of students exploring the various student bank account options to potentially save money during their educational pursuit. While many accounts may attract students with interest-free overdrafts, Douglas advises caution, reminding students that these funds will eventually need to be repaid.
Considering the financial landscape facing students, including the likelihood of student loans, shared living expenses, and limited credit history, Douglas recommends utilizing personal finance apps to manage budgets and enhance credit scores for a more secure financial future. In a related development, Nationwide will reward customers with a bonus of £760 for completing a specific action.
Douglas also highlighted the benefits of the Santander Edge account, citing perks such as cashback at multiple retailers and a complimentary four-year Railcard. However, the account requires a minimum monthly deposit and offers the chance to win substantial cash prizes.
For students opting for the Santander Edge account, the initial year includes an overdraft limit of £1,500, with incremental increases in subsequent years. Other incentives include a free Railcard and access to cashback offers at various retail establishments.
In a similar vein, Halifax provides a cash incentive upon account opening and offers cashback rewards at select retailers, alongside Deliveroo vouchers for regular card usage. The overdraft structure at Halifax mirrors that of Santander, with incremental growth over the years.
NatWest and RBS stand out for their interest-free overdrafts up to £3,250, coupled with cash rewards and dining discounts through a Taste Card. The account’s overdraft limit starts at £2,000 and escalates to £3,250 over time.
The HSBC student account boasts a 5.00% interest rate, making it an attractive option for savers. The account offers an overdraft of up to £3,000 by the third year of study, with incremental increases each year.
Lloyds Bank presents a similar overdraft structure to HSBC, with an initial overdraft of £1,500 escalating to £2,000 after three years. Additional perks include cash rewards, Deliveroo vouchers, and cashback with various retailers.
Nationwide’s FlexStudent account mandates regular deposits and offers an increasing overdraft limit up to £3,000 by the third year, along with cashback and voucher incentives.
For a more straightforward option, TSB maintains a constant £1,500 overdraft limit over the five-year course. The account offers credit interest on balances up to a specified amount.
Barclays provides an interest-free overdraft up to £1,500, with no additional perks or bonuses. The overdraft limit starts at £1,000 in the first year, gradually increasing to £1,500 by the second year and remaining constant thereafter.