It may not be the most exciting start to university life, but picking the right student account can pay off in the long-term, particularly if you're partial to freebies or may come to rely on an overdraft.
Financial giants HSBC, Nationwide Building Society and NatWest have launched the most generous student account offerings for 2024.
HSBC offers an up to £3,000 interest-free overdraft in the third year of study, but what sets it apart from competitors is its discount scheme titled ‘Home and Away’.
It offers exclusive discounts on shopping, travel and dining experiences to lighten the load during term time both in the UK and abroad. Shopping wise, this includes a 10% discount at The Bicester Collection, 12% off Havaianas and 15% off make-up brand Mac.
If you are planning a holiday in between semesters, the account also bags you 10% off in hotels around the world and 11% off if you choose the designated accommodation from Expedia.
The food offers are spread across a huge range of international chains, so check out the full list to see if an offer is near your destination. These options include 25% off at Eastwood Cafe and Bar in Manila, 15% off food and drink at Coconut Grove, Miami plus 15% off your total bill at Quebracho which has venues in Hamburg and Mexico.
For another year NatWest is offering undergraduates £100 in cashback to open an account with it. The cash will arrive in your account within 10 days of signing up for its mobile or online banking services.
This account also has a tastecard valid for four years which gets you discounts at Black Sheep Coffee, Domino’s and Krispy Kreme. Further, an interest-free overdraft is part of the deal, which rises to £3,250 by your third year at university.
Completing the trio of leading accounts for students is Nationwide, which also offers £100 to new account holders, plus 12 months’ worth of Just Eat vouchers valued at £120. Account holders are sent monthly £10 vouchers so you can enjoy regular takeaway treats throughout the year.
Elsewhere, Santander has an enticing deal for students who expect to travel throughout their course, as a four-year Railcard is up for grabs which entitles holders to a third off fares. It usually costs £30 for the first year and £70 if you opt for a three-year deal.
The lender is also offering a hefty £27,750 – equivalent to three years of tuition fees – to 20 customers who open its Edge student account, while 30 more will pick up £9,250 which will cover a year’s worth of tuition fees.
TSB has an array of discounted perks which include 25% off breakdown cover with The AA and 35% off a Hussle Monthly+ gym pass.
When the time arrives to leave student digs, the provider also offers £15 off the cost of moving via AnyVan.
Lloyds waited until August to announce its offer to students, which includes £110 for account holders who pay in £500 between now and 31 October.
Overdraft-wise, it is interest-free in the first to third years up to £1,500, and that can be extended to £2,000 for longer-term courses for years four to six at university.
The provider also has a 20% discount deal on student union events, including events during fresher’s week all the way to the end of the academic year. Up to 50 universities are participating, which can be found here.
As well as a current account, it also has an affiliated credit card with an interest of 2% AER on balances up to and including £5,000.
YourMoney.com contacted Barclays for its latest deal for students and it said there will be no upcoming changes to its ‘student additions’ account.
Here’s a provider-by-provider snapshot of 2024 student account offers:
‘Interest-free overdraft proves to be one of the most popular features’
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “One of the most popular features of a student bank account is the interest-free overdraft. This year NatWest offers the most generous tariff and will also give applicants £100 in free cash and a tastecard as sweeteners.
“There are a few other brands now confirming their latest student account perks which could entice those looking to save some cash when travelling or eating out. It is worth keeping in mind that any discounts need to be used frequently to maximise the benefits.”
Springall added: “Money management is a key life skill and for some students, this will be the first time they have been away from home, which can be daunting.
“However, there are various ways for students to keep on top of their finances, such as with online or mobile banking and by using budgeting apps.
“It’s also worthwhile for them to look into other ways to save some cash, such as with student discount offers and cashback when they spend. A generous interest-free overdraft could be a lifeline for some students, but it is worth noting that this must be paid back when they finish their studies. If this is a worrying thought, then it’s essential students seek support to improve their mindset and financial situation.”
Related: Two million university goers owe up to £100k in student loan debt
