STUDENTS can open a specially tailored bank account during their time at university – but some are a better deal than others.
Many students will be waiting in anticipation of A-Level results day on August 15 and starting to think about how they will manage their money if they make it to university.
Student bank account providers are battling it out for the top spot, with many offering tempting perks in time for the new term beginning in September to lure customers in.
If you have an unconditional place to study at a university in the UK, you’ll be able to apply for one of these accounts now.
You’ll need to have been accepted onto a full-time UCAS course at a UK institution lasting at least two years.
We explain all you need to know about how to apply for a student account, and what the best deals on the market are at the moment.
If you’re a student in the UK you can set up one of these accounts.
Usually, you’re provided with a larger overdraft limit than a normal bank account will offer – in some cases up to £3,000 without interest.
But remember an overdraft isn’t free money.
After you graduate, you still have to repay everything you have borrowed and interest may kick in upon graduating.
Plus, you might face additional charges if you go over the overdraft limit.
If you think this might happen, you should speak to your bank immediately, as it could hurt your credit rating and ability to borrow in the future.
Most student accounts require you to be either over 17-years-old or over 18, and you’ll need to have been accepted onto a full-time UCAS course at a UK institution lasting at least two years.
You can’t get one if you already have another student account set up and you will need to be a UK resident.
Check the eligibility criteria for the account you are applying for to see if it has any additional requirements, too.
Different banks and building societies will offer freebies to tempt you into opening their account and not a rival’s.
This could include discount cards, cashback offers or subscriptions.
But you want to keep in mind if the overall package is worth it and you shouldn’t go for the account just because of the freebies available.
We’ve rounded up the student accounts with the highest interest-free overdraft limits and the best perks to help you decide which one you might go for.
Perks for students – like free cash – are designed to tempt students into opening a bank account with the hope they’ll become a customer for life.
Barclays and Co-op Bank offer student accounts, but they are among the few not offering any perks on top of the interest-free overdraft of up to £1,500.
Bank of Scotland, Lloyds and Halifax are offering up to 15% cashback when you spend at certain retailers.
However, both accounts fall short of offering free cash and other perks.
TSB offers students an interest-free overdraft worth up to £1,500 and 5% interest on any deposits made into the current account worth up to £500.
Of course, whichever account you open you don’t have to stick with forever.
You’ll also need to check the accounts that suit your needs in other ways, such as having an app or ATM withdrawal limits, as well as the full terms and conditions and eligibility criteria.
HSBC provides an interest-free overdraft of £1,000 when you apply for the account, which could rise to £3,000 in year three.
Here are the accounts offering the top perks right now:
You get £100 in free cash if you deposit £500 into your Nationwide student account before December 13.
The money will arrive in your account within 14 days of the cash being put into the account.
Plus, those with a Nationwide student account will also be able to get £120 worth of JustEat vouchers.
These will be made available in £10 instalments for 12 months.
You can also get up to £1,000 in your overdraft in the first year and it rises by £1,000 every year after that so £2,000 in year two and £3,000 in year three beyond.
To qualify for the overdraft you must pay at least £500 into the account per term.
Plus, students are provided with a debit card that can be used abroad.
Customers won’t be charged a non-sterling transaction fee when making purchases or a cash advance fee for taking cash out at ATMs outside the UK.
You’ll get £100 free cash and a four-year Tastecard when opening either a NatWest or RBS student account (they are both part of the same banking group).
If you were to buy a Tastecard for four years in a row it’d set you back £119.96.
The loyalty card offers exclusive discounts which let you get up to 50% off food at thousands of restaurants across the country.
The banks also offer an interest-free overdraft worth up to £3,250. However, it’ll only be worth £500 in the first term.
Santander offers students a four-year Railcard usually worth over £100.
The Railcard offers a third off the price of train journeys but you’ll need to make sure you carry it with you when you travel.
From your first year to your third year at university, you can get up to £1,500 in your overdraft.
Then if you’re studying beyond that you can get up to £1,800 in Year four and up to £2,000 in year five.
Many savings accounts offer miserly rates meaning that money is generating little or no return.
However, there are ways to get your cash working hard. Sun Savers Editor Lana Clements explains how to make sure you money is getting the best interest rate.
Easy access savings accounts offer flexibility for customers, meaning they can dip in and out of cash when needed. However, the caveat is that rates can change at any time.
If you’re keeping your money in an easy access account, you’ll need to keep checking whether it’s the best paying account for your circumstances and move if not.
Check in at least once a month to see what is happening in the market.
Check what is offered by your bank – sometimes the best rates are for customers only.
But do search the wider market as often top savings accounts are offered by lesser known providers.
Comparison sites are a good place to check for the top rates. Try Moneyfactscompare.co.uk or Moneysupermarket.
You can search by different account type. You’ll usually get a better interest rate if you can lock your money away for a fixed amount of time, but it’s always a good idea to keep some money in an easy access account in case of emergencies.
Don’t overlook regular savings accounts often pay some of the best rates, but you’ll need to commit to monthly payments. This can be a great way to get into a savings habit while earning top rates at the same time.
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