As A-level results are set to be unveiled today, students preparing for higher education are contemplating the best bank account options to kickstart their academic journey. A recent analysis by TotallyMoney and Moneycomms has evaluated the array of student accounts available for those commencing university or college this September.
TotallyMoney’s CEO, Alastair Douglas, recommends students to explore different student bank account offerings to potentially save money during their academic years. While most accounts offer interest-free overdrafts, Douglas cautions students about the necessity of repaying borrowed funds in the future.
Considering the financial aspects of student life, Douglas advises incorporating budgeting tools and credit-building strategies like utilizing personal finance apps to manage expenses effectively. This proactive approach could lead to enhanced financial acumen post-graduation.
In evaluating specific accounts, Douglas highlighted the Santander Edge account, emphasizing its various benefits such as cashback incentives at popular retailers and a complimentary four-year Railcard. To maximize the perks of this account, maintaining it as the primary account and meeting the minimum deposit requirements are essential.
For students considering Halifax, Douglas pointed out the account’s advantages, including a cash reward upon account opening, cashback benefits at select retailers, and Deliveroo vouchers for regular card usage. The account offers a similar overdraft structure to Santander, gradually increasing over the years.
NatWest and RBS provide students with interest-free overdraft facilities up to £3,250, coupled with additional benefits like cash rewards and dining discounts through the Taste Card. These accounts offer a gradual increase in overdraft limits over the academic years.
HSBC’s student account stands out for its 5.00% interest rate option for savers and a potential overdraft limit of up to £3,000 by the third year of study. The account’s overdraft incrementally rises each year, providing flexibility for financial management.
Lloyds Bank presents a £1,500 initial overdraft limit, expanding to £2,000 by the third year and remaining consistent until the fifth year. Additional benefits include cash rewards, Deliveroo vouchers, and cashback opportunities at selected retailers.
Nationwide’s FlexStudent account requires regular deposits and offers an initial overdraft of £1,000, increasing to £3,000 by the third year, with added perks like cashback and food vouchers.
TSB’s basic account provides a steady £1,500 overdraft limit throughout the five-year course, offering credit interest on balances up to £500 with no extra bonuses.
Barclays, though offering an interest-free overdraft of up to £1,500, lacks additional incentives or rewards for account holders. The overdraft limit starts at £1,000 in the first year and gradually increases to £1,500 in the second year, remaining constant thereafter.