Choose the right student account
Picking a student account can feel quite daunting with so many offers and options.
“The whole package should be weighed up, to ensure it’s the best choice for an individual,” says Rachel Springall, finance expert at Moneyfacts.co.uk
An interest-free overdraft could be the “most useful” element of the overall package, and while many banks and building societies will offer interest-free overdrafts to students, this could depend on individual circumstances.
Some providers increase the overdraft facility as you progress through university. HSBC UK offers an interest-free overdraft of up to £1,000 in year one.
You can ask for an increase of up to £2,000 in year two and £3,000 in year three, subject to status and how the account has been used.
If you do end up in the red, it’s also important to have a plan for what will happen to the debt when you graduate.
Graduate accounts may offer a 0% interest overdraft on certain amounts and time periods, giving you some time to clear your student debt without paying interest – but this may be subject to status, make sure you fully understand all the terms that apply to you.
For many students, some extra cash when they open their account would be very welcome.
NatWest and RBS, are offering £80, while Nationwide Building Society and HSBC UK are offering £100, subject to terms and conditions.
And for interest on money in your account, TSB is offering 5% on balances up to £500.
If you’re likely to be forking out a lot on travel, it may also be worth considering that Santander UK has a four-year 16-25 railcard with its student account.
Some accounts offer shopping perks. NatWest and RBS have a four-year tastecard for cinema and restaurant discounts; Santander UK gives students the chance to earn up to 15% cashback from selected retailers; and Lloyds Bank is offering a free TOTUM card for up to three years, giving access to discounts with high street and online retailers, including at JD Sports, Amazon, Co-op, Apple and Samsung.