A-level results are set to be released today, leaving many students deciding which bank account to opt for as they prepare to head to university in September. A number of banks offer student accounts, all with compelling rates and offers for new customers.
Alastair Douglas, CEO of TotallyMoney, advised: “If you’re heading off to college or university this September, then it’s worth shopping around and having a look to see if there’s a student bank account out there that might help you save money over the next few years. Most will try and entice you with an interest-free overdraft, but it’s worth remembering that you’ll have to pay this money back at some point”.
He further added: “It’s worth thinking about your finances in general, as you might be taking out a student loan and moving into shared accommodation where you’re splitting bills, and you’ll probably have a thin credit file too. So download a free personal finance app to help you budget and build your credit score. That way you could be leaving higher-education with a First Class Masters in managing your money.”
Santander
Douglas shared his views on the Santander Edge account, stating: “The Santander Edge account offers a wide range of perks, which includes cashback at a range of retailers, and a free four year Railcard. However, you will need to make this your main account and deposit a minimum of £500 every four months. You’ll also be entered into a prize draw, and you could bank up to £100k.”
Should you opt for Santander Edge, anticipate your initial year to feature a maximum overdraft of £1,500, alongside the mandatory deposit each term, reports the Mirror. Years two and three will continue with identical overdraft limits, and year four will see a rise to £1,800, and climb further to £2,000 in year five.
The benefits of this account include:
- Complimentary four-year 16-25 Railcard (valued at £115)
- Access to Santander ‘boosts’ – cashback deals at Greggs, Tesco, Café Nero and other shops
- Entry in prize draw – rewards from £100 to £100,000 (minimum £20 guaranteed)
Halifax
Douglas explained: “Halifax will give you £100 cash if you open an account and deposit £500 by the end of October, and 15 percent cashback at certain retailers. You’ll also get up to £90 in Deliveroo vouchers if you use the card often enough – which could come in handy if you fancy treating yourself to a takeaway.”
The overdraft mirrors Santander, featuring £1,500 for the initial three years, followed by an increase to £2,000 in years four and five.
The perks of opening a Halifax account include:
- £100 cash if you deposit min of £500 by October 31, 2025
- Up to £90 in Deliveroo vouchers (£15 per month from November to April, with a minimum of 20 card transactions per month to qualify)
- Up to 15 per cent cashback with selected retailers including Costa, Just Eat and Sainsbury’s
NatWest/ RBS
Douglas said: “With NatWest and RBS you can get an interest-free overdraft of to £3,250 – but watch out, because you will have to repay it.” He said the perks include £85 cash for signing up, and a Taste Card, giving you discounts when you eat out. Its overdraft starts at £2,000, and increases to £3,250 in your third year.
Along with your account, you will receive:
- £85 in cash
- Four-year free Taste Card (worth £79.99 per year)
HSBC
Douglas stated: “The HSBC student account is a good choice if you’re planning to save, as they’ll pay 5.00 per cent interest. If not, you could get an overdraft of up to £3,000 by your third year of studying.”
Starting at £1,000, the overdraft increases by £1,000 each year. This means that in your second year of University, you will have the option of a £2,000 overdraft, and your third year a maximum of £3,000 – which continues to the end of year five.
With this account you will have access to:
- 5 per cent regular saver account.
Lloyds Bank
Lloyds Bank gives you a £1,500 overdraft to begin your first year with, with an increase at your third year to £2,000. This will continue through to the end of your fifth year, similar to HSBC.
Lloyds also offers:
- £100 cash if you deposit a minimum of £500 by 31st October 2025
- Up to £90 in Deliveroo vouchers (£15 per month from November to April, with a minimum of 20 card transactions per month to qualify – the same as Halifax)
- Up to 15 per cent cashback with selected retailers including Costa, Co-Op, and Sky
Nationwide
The Nationwide FlexStudent account expects the account holder to deposit at least £500 each term, offering an initial overdraft of £1,000. This increases up until the third year, with a maximum overdraft of £2,000 in the second year and £3,000 in the third year. This is available until the end of your fifth year.
Other benefits include:
- £100 cashback within 14 days of depositing £500 into your account (expires on 12 December 2025)
- 12 monthly Just Eat vouchers worth £10 each, totalling £120
- An extra £40 in Just Eat vouchers (with two referrals for £20 each)
- Commission-free purchases and cash withdrawals abroad
TSB
A more basic account, the TSB overdraft remains at £1,500 throughout the course of five years. While it states this amount increases over the course of the year, you will start with the standard amount.
The account also includes:
- Credit interest of 5.00 percent AER on balances up to £500
Barclays
According to TotallyMoney, Barclays accounts come with an interest-free overdraft of up to £1,500, with no added bonuses or incentives.
Starting at £1,000 in your first year, with an initial cap of £500 when opening, the overdraft is now set to rise to £1,500 in your second year – which will continue until the end of your time at University. Unfortunately, Barclays offer no additional benefits.
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