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Best student bank account perks and freebies 2024
You could get up to £125 cashback or a four-year railcard
The competition to offer the best student current account is heating up, as banks set out a range of perks and freebies to entice those going into further education or apprenticeships this autumn.
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 cashflow 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 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.
| Provider | Overdraft limit | Perk |
|---|---|---|
| Bank of Scotland student account | Year 1: up to £1,500 (0-6 months £500, 7-9 months £1,000 and 10 months+ £1,500) Year 2 to 3: up to £1,500 Year 4-6: up to £2,000 | - £110 cash - Discounts and cashback through Everyday Offers scheme |
| Barclays student additions account | Year 1: up to £1,000 (first term up to £500) Year 2+: up to £1,500 | - Free three-year subscription to Perlego - an online library of books, academic texts and tools - worth £288 |
| Halifax student current account | Year 1+: up to £1,500 | - £110 cash - Earn up to 15% cashback from selected retailers with Cashback Extras scheme |
| HSBC student account | Year 1: at least £1,000 Year 2: up to £2,000 Year 3: up to £3,000 | - £125 cash - Discounts through the HSBC Home&Away scheme |
| Lloyds Bank student current account | Year 1: up to £1,500 (0-6 months £500, 7-9 months £1,000 and 10 months+ £1,500) Year 2 to 3: up to £1,500 Year 4-6: up to £2,000 | - £110 cash - 20% off student union events - Discounts and cashback through Everyday Offers scheme |
| Nationwide FlexStudent | Year 1: up to £1,000 Year 2: up to £2,000 Year 3+: up to £3,000 | - £100 cash - Just Eat vouchers (worth £120 a year) - No charges for using debit card abroad |
| NatWest student account | Year 1: up to £2,000 (1-4 months £500, 5 months+ £2,000) Year 2: up to £2,000 Year 3-5: up to £3,250 | - £100 cash - A four-year Tastecard (normally worth £55 a year but currently worth £29.99 a year) |
Correct as of 29 August 2024
- Find out more: best laptops for students
What 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 (normally £55 a year, but 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 90-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 is offering a three-year subscription to Perlego, a digital online library that offers academic textbooks and non-fiction e-books. This service normally costs £12 a month, £40 every four months or £96 a year, so a three-year membership could save you £288.
- Find out more: how to save money on transport
The 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 length 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.
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: best bank accounts for overdrafts
What's in the small print?
Most banks require you to spend or deposit a certain amount to be eligible for the perks and overdrafts offered, so make sure you read the terms and conditions carefully before applying.
HSBC says the account holder must make at least five qualifying transactions using the HSBC debit card within 30 days of opening the student bank account to get the £125 cashback. It will make the payment by the 20th of the following month that the eligibility criteria have been met.
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 and 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: a guide to repaying your student loan
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: best bank and bank accounts 2024
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.
- Find out more: how to improve your credit score
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Listen nowThis article has been updated since it was first published on 13 August. It was last updated on 29 August with details of the Barclays and HSBC offers.
