it is crucial for students to check the overall package in order to determine the most suitable product for them. One of the key features offered by these accounts is the sizeable interest-free overdrafts, which means that when choosing an account, apart from the features and perks you hope to use, it will come down to how much you intend to borrow.
According to MoneySavingExpert.com, one of the top consumer websites in the UK, Santander’s 123 student current account is top pick among the student accounts that are currently available in the market. It offers a £1,500 interest-free overdraft in years one, two and three for students. In year four, the account holder may interest-free overdraft of up to £1,800 and £2,000 if they stay on to year five. The account is offered by Spanish-owned Santander, which achieved a student satisfaction score of 4.39 out of five. Other perks offered by the account include a free four-year 16-25 Railcard worth £90, with rail fares at a third off most rates.
Meanwhile, HSBC has introduced a student bank account from which you can get an interest-free overdraft of up to £1,000 in your first year, and could rise to £3,000 by year three. The account also offers £80 in cash incentives, along with either a £20 Uber Eats voucher or unlimited next-day delivery with Asos Premier for an entire year.
On the overdraft front, Nationwide offers the same deal as HSBC, up to £1,000 in the first year and rising to £3,000 in your third year. On the other hand, by opening a student account at Barclays, you can get up to £500 as an interest-free overdraft during the first term, up to £1,000 in the first year and up to £1,500 in year two. Meanwhile, NatWest’s interest-free overdraft goes up to £2,000, regardless of the academic year you are in, although it is capped at £500 during the first term.
