In a few weeks time, thousands of school leavers will get their A Level results and find out whether they have secured a place at their chosen universities. This means that probably for the first time, they will be living financially independent lives and will be looking for the best student bank accounts. The main high street banks have put together packages which will appeal to students and many include freebies like railcards and insurance for laptops but which is the best? Let’s take a look.
Lloyds TSB Student Account
This account offers an interest-free overdraft of up to £1,500 in the first year, allowing students to go overdrawn by up to £500 interest-free in the first six months and then allowing them a further £1,000 in months seven to nine. A free, mobile banking service is another feature of the account which can help students keep control of their finances. The students can choose to receive weekly balance and text alerts so they will always know if they are about to go over their overdraft limit.
The Barclays Student Additions current account
Barclays’ Student Account provides an interest-free overdraft of £2,000 every year of your degree course. It also offers mobile banking with students having the option of text alerts. A contactless debit card to make transactions of £15 or less is also available. The card is simply held near a reader and the payment made, meaning that cash doesn’t need to be carried around. And there is a freebie, the account comes with cashback worth up to £75 of on mobile phone packages, plus a 20% discount on travel insurance.
HSBC Student Account
HSBC is offering an overdraft of £3,000 for every year of your degree course. And the account also caters for those who don’t plan to go overdrawn, offering 2% annual interest before on balances up to £1,000 held in the account in the first year. There is two years’ worldwide travel insurance for first year students which would be useful if the course includes a short-term placement abroad or for students just planning to see a bit of the world in the holidays.
Santander Student Account
Santander are only offering an overdraft of £1,000 interest-free in year one, £1,250 in year two, £1,500 in year three, rising to £1,800 and then £2,000 in years four and five. One of the features of the Santander Student Account is that it comes with mobile, gadget and laptop insurance. Students can also earn 1% annual interest on any savings if they manage to stay in the red, but this is only payable on balances up to £500.
NatWest Student Account
Like Santander, NatWest are only offering an interest-free overdraft up to £1,000 in year one. You can go overdrawn interest-free by up to £500 in the first term, £750 in the second term and £1,000 in the third term. In the second, third, fourth and fifth years, the interest-free overdraft rises to £1,250, £1,500, £1,750 and £2,000 respectively. This account does offer up to £100 off selected ASUS laptops as well as a Student Discount card, which entitles you to money off at places like Game and STA Travel.