Offers include free cash, takeaway vouchers or a railcard, but an important perk to weigh up is the interest-free overdraft, which can help you manage your cash flow throughout your course or training.
Here, Which? takes a closer look at the range of incentives on offer and what to watch out for in the small print.
What do student accounts offer in 2024?
We’ve rounded up the current perks available on student bank accounts that have been announced so far. This table is ordered alphabetically.
To qualify for these accounts you'll usually need to be a first-year student (or about to be one) and have proof of acceptance to a university or further education course or apprenticeship, often defined as one lasting at least two years.
undefinedWhat are the best perks?
Lloyds Bank, Halifax and Bank of Scotland will pay the most cash, offering £110 to those who open a student account.
NatWest and RBS will pay slightly less at £100, but you can also get a Tastecard valid for four years (currently worth £29.99 a year or £119.96 over four years). Tastecard membership offers 2-for-1 deals at participating restaurants, up to 50% off pizza delivery, and money off at the cinema.
However, if you don't go for either of these accounts you can still get a 60-day Tastecard trial for £1 or save by getting a Totum card (£24.99 for a three-year membership), which offers discounts on shopping and comes with a free Tastecard.
Nationwide also offers to pay £100 plus a monthly £10 Just Eat voucher for 12 months (£120 in total).
Santander is the only provider to offer a free four-year 16-25 Railcard. The card usually costs £30 for a year, or £70 for three years, and it enables you to save a third on rail travel. The bank is also running a competition where 50 students will win some money off their tuition fees.
Barclays hasn’t announced a special freebie yet, although last year it offered 12-month access to Perlego, a digital online library that offers academic textbooks and non-fiction e-books.
Find out moreThe best interest-free student overdraft
All the student accounts we looked at offer an interest-free overdraft, but the limits varied depending on the provider and the duration of the course or training.
Nationwide, NatWest, RBS and HSBC are willing to offer the most generous limits by the third year of your course.
Just remember you may not be offered the maximum overdraft limit, as most banks will assess your eligibility based on your personal circumstances and credit score.
Also, while a student overdraft is interest-free while you're studying or training, the loan will start to attract interest, usually two years after you graduate. So you'll need a plan on how to pay it back, ideally before the interest kicks in.
Find out more:What's in the small print?
Most banks require you to spend or deposit a certain amount to be eligible for the perks and overdraft on offer, so make sure you read the terms and conditions carefully before applying.
Lloyds Bank requires students to pay in at least £500 between 1 August and 23:59 on 31 October 2024 to be eligible for the cash. The £110 will be paid to customers by 30 November 2024.
Nationwide requires you to pay in at least £500 by 13 December, and your £100 will be paid within 14 days. You won't be eligible if you've benefited from a previous FlexStudent offer or if you had an open FlexStudent or FlexGraduate on 15 July 2024.
NatWest and Royal Bank of Scotland only require you to open the account for the £100 will be paid within 10 working days. Again, you won't be eligible if you've previously benefited from a NatWest Group student offer.
Santander says students need to pay in at least £500 to their account every four months.
Find out more:Which provider has the best customer service?
Each year, we survey thousands of current-account customers and ask them to rate the service they receive. This enables us to find the UK banks and building societies that offer great products and top-notch customer service.
Out of the providers that offer tailored student accounts, Nationwide had the highest customer score at 77%, followed by Barclays (74%) and Halifax (74%)
Find out more:Do students need a credit card?
An interest-free overdraft will be better than borrowing money using a student credit card. This is because you won't have to pay any fees, provided you stay within your limit.
However, a student credit card could be a good way to build up your credit score. But you’ll need to pay back what you spend every month in full to avoid paying interest and boost your score.
With a credit card you’ll also benefit from Section 75 protection, which can help you get your money back on purchases worth over £100 and up to £30,000 if something goes wrong.
Out of the providers we've looked at in our table, just HSBC and TSB offer credit cards designed for students.
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