A-level results are set to be unveiled today, prompting students to contemplate the ideal bank account to secure before commencing their academic journey. TotallyMoney and Moneycomms have scrutinized the array of student accounts tailored for upcoming higher education entrants this September.
TotallyMoney’s CEO, Alastair Douglas, suggests that prospective college or university attendees should explore various student bank account options to potentially save money during their educational pursuit. While most accounts offer interest-free overdrafts, it is crucial to bear in mind that the borrowed funds will need repayment at a later stage.
Considerations should extend beyond the overdraft feature, especially if acquiring a student loan and transitioning into shared living arrangements with bill-sharing responsibilities, alongside a limited credit history. Douglas recommends utilizing a free personal finance app to manage budgeting and bolster credit scores, ensuring a sound financial footing post-graduation.
Santander Edge presents an attractive option with its diverse perks, including retailer cashback and a complimentary four-year Railcard, contingent on making it the primary account with a minimum quarterly deposit. Additionally, account holders are entered into a lucrative prize draw, offering potential earnings up to £100,000.
Halifax entices students with a £100 cash incentive upon account opening and a 15% cashback opportunity with selected retailers, coupled with Deliveroo vouchers for frequent card usage. The bank extends a similar overdraft structure to Santander, escalating gradually over the years.
NatWest and RBS stand out for proffering interest-free overdrafts up to £3,250, coupled with an £85 cash reward and a complimentary Taste Card for dining discounts. The initial overdraft limit is £2,000, escalating to £3,250 by the third year of enrollment.
HSBC’s student account allures savers with a 5.00% interest rate and a potential £3,000 overdraft by the third academic year. The overdraft increment starts at £1,000 and rises annually, facilitating financial flexibility for students.
Lloyds Bank furnishes a £1,500 initial overdraft, elevating to £2,000 by the third year and remaining constant thereafter. The account rewards depositors with cash incentives and Deliveroo vouchers, along with cashback opportunities at selected outlets.
Nationwide FlexStudent mandates a minimum £500 termly deposit, offering an initial £1,000 overdraft that escalates to £3,000 by the third year. Extra benefits encompass cashback, Just Eat vouchers, and commission-free transactions abroad.
TSB maintains a static £1,500 overdraft over the five-year period, complemented by a credit interest rate of 5.00% AER on balances up to £500, devoid of additional perks.
Barclays provides an interest-free overdraft up to £1,500, with no supplementary bonuses. The overdraft commences at £1,000 in the first year, increasing to £1,500 in the subsequent years, sans extra benefits or incentives.