A-level results are set to be unveiled today, prompting students to consider their banking options before commencing their studies. Analyzing the available student accounts for upcoming higher education entrants in September, TotallyMoney and Moneycomms have provided insights.
Alastair Douglas, CEO of TotallyMoney, recommends exploring student bank account options to potentially save money during the academic years. While most accounts offer interest-free overdrafts, Douglas advises students to be mindful of eventual repayment obligations. He also suggests considering overall financial planning, especially with the likelihood of student loans, shared accommodation expenses, and limited credit history.
To manage finances effectively, Douglas suggests utilizing personal finance apps to budget and enhance credit scores, thereby mastering money management skills by the end of the academic journey.
Regarding specific accounts, Douglas highlights the Santander Edge account, which offers various benefits, including cashback at multiple retailers and a complimentary four-year Railcard. However, maintaining a specified account balance and regular deposits are required to access these perks and potentially win up to £100,000 through a prize draw.
For students opting for the Santander Edge account, the initial year’s overdraft limit is £1,500, gradually increasing in subsequent years. Additional incentives include a free Railcard, cashback opportunities, and entry into a prize draw.
Additionally, Halifax provides a cash incentive for account opening and minimum deposits, along with cashback rewards at select retailers and Deliveroo vouchers based on card usage frequency. The account offers similar overdraft terms to Santander, with increasing limits in later years.
NatWest and RBS offer interest-free overdrafts up to £3,250, coupled with cash incentives and dining discounts through a Taste Card. The overdraft amounts gradually increase over the years, providing financial flexibility to students.
HSBC’s student account features a 5.00% interest rate for savers or an overdraft up to £3,000 by the third year of studies, with the overdraft increasing annually. The account aims to promote savings and financial growth during the university years.
Lloyds Bank offers a £1,500 overdraft initially, growing to £2,000 by the third year, along with cash incentives and Deliveroo vouchers. The overdraft limit remains consistent throughout the five years of study.
Nationwide’s FlexStudent account requires regular deposits and provides an initial overdraft of £1,000, gradually increasing over the years. Notable perks include cashback offers and Just Eat vouchers.
TSB offers a straightforward overdraft of £1,500 throughout the five-year course, with credit interest on balances up to £500.
Barclays provides an interest-free overdraft of up to £1,500, with no additional benefits or incentives. The overdraft limit gradually increases over the academic years, reaching £1,500 by the second year.
