Student bank accounts are designed especially for University students. There are many perks to student accounts, including discounts, freebies and even interest free overdrafts!
We have put together a list of the best student bank accounts to have at University in 2022:
What is the purpose of a student bank account?
Student bank accounts allow you to pay money in and out of your current account. Unlike ordinary bank accounts, they are exclusively for students in higher education in the U.K who are aged 18 or over. Banks love to entice new students with all their sign up incentives, that is why its important to reap their benefits by choosing the right bank for you. Along with building a rapport with your chosen student bank, you will also increase your eligibility for future credit and debit cards if you use your student bank account sensibly.
- A free 16-25 rail card to save 1/3 on train travel across the U.K.
- Retail cashback offers up to 15%, you can choose from a range of high street favourites and retail giants.
- An interest free arranged overdraft of £1,500 in years 1-3 of your studies, this increases past year 3.
- £100 free cash when you use the account for your first 5 transactions.
- An interest free overdraft of £1,000 in your first year of university. This can increase to £3,000.
- £80 free cash when you sign up with NatWest.
- Free Tastecard membership, this gets you 2 for 1 or 50% off thousands of restaurants across the U.K.
- £500 interest free overdraft in term one, this increases to £2,000 for the rest of your time at University.
An overdraft is extra money provided by your bank, many student bank accounts offer 0% overdrafts (which are interest free). An overdraft should only be used when you’re struggling for money. Overdrafts are not free money, if you go into your overdraft, you will have to pay it back. Furthermore, it is recommended to set a cap on your overdraft so you don’t go too far into it. This can be arranged via the mobile banking app of your bank or visiting in branch. If you exceed the limit of your overdraft, your bank account is at risk of being blocked.
Money matters, that is why choosing the right student bank account for you will help you manage your finances at University. In addition, it is important to understand your outgoings so you can maximise your student loan and spend wisely.