Best student bank account

So you're preparing for university and realise you need to do adult things like setting up a student bank account, but where do you start? Having a student bank account is something you should seriously consider if you are going to university. Whether you already have a bank or not, your student account will help you to separate your student loan and even offer perks such as student discounts and an interest-free overdraft. There are many different student accounts available, so it can be hard to decipher which one is best for you.  Here we have broken them all down to help you decide. 

Santander 123

  • Interest-free overdraft - £1,500 years 1-3, £2,000 years 4-5
  • Freebie - 3pc interest on balances £300-£2,000, free 16-25 railcard
  • Catches - Must pay in at least £500 per term for benefits, £5 daily fee for unarranged overdraft

 

Bank of Scotland/ TSB Bank 

  • Interest-free overdraft -  £500 in first six months, £1,500 years 2-3 and £2,000 in years 4-6
  • Freebie -  £75 off a holiday
  • Catches -  £6 monthly fee for the going beyond free overdraft

 

Barclays      

 

  • Interest-free overdraft - £200 - £200
  • Freebie - N/A
  • Catches - £1 a day charge for exceeding free overdraft

 

                   

Co-op Bank 

 

  • Interest-free overdraft - £1400 in the first year, £1700 in year 2 and £2000 in year 3
  • Freebie - N/A
  • Catches - Must credit account with £300 before going overdrawn, 9.9pc on agreed overdraft and 18.9pc on unarranged

 

 

Halifax 

  • Interest-free overdraft - dependent on circumstances and account behaviour
  • Freebie - Earns 0.1pc interest, commission free currency
  • Catches - 24.2pc charged on the whole overdraft if account holders go beyond their planned limit


HSBC 

  • Interest-free overdraft - £3,000 (assessed individually)
  • Freebie - 2pc interest on first £1,000, £60 Amazon gift certificate, commission-free currency £100 to £2,500
  • Catches - 2.75pc fee on foreign purchases, 19.9pc interest on overdraft if customers fail to confirm their course

 

Lloyds 

  • Interest-free overdraft -  £1,500 years 1-3 and  £2,000 years 4-6
  • Freebie - Free NUS Extra card for 3 years, £75 off a holiday, 15pc cashback on offers advertised by bank
  • Catches - Overdraft limited to £500 in first 6 months, after which 8.21pc interest kicks in

 

NatWest/RBS

 

  • Interest-free overdraft - £500 in the first term £2,000 afterwards
  • Freebie - Taste Card membership
  • Catches - £6 charge for transactions exceeding overdraft, must pay in at least £750 and make 3 debit transactions to avoid 19.98pc interest

 



If you found this helpful, check out our blog page for more student tips and advice. 

 

 





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