Battle for students as new account perks unveiled

Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo
Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
02/08/2021

Battle for students as new account perks unveiled

The battle for new business by student account providers has intensified as new perks have been launched to entice those comparing deals. As the weeks countdown to the new academic year, the latest analysis by Moneyfacts.co.uk reveals how students could find some noteworthy cost-saving perks, but stresses the importance of studying the overall package before they commit.

  • Barclays launched a new perk: Perlego, the online library for free (£96 annual saving).
  • HSBC launched new perks this year: £80 in cash plus the choice of a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier (worth £9.95 a year).
  • NatWest perks tweaked from a year ago – last year a choice of perks were available, either Amazon Prime Student (usually £3.99 a month, or £47.88 over one year – free for the first six months), a Coach Card (worth £12.50 over one year or £30 over three years) or a tastecard (usual cost per year £34.99), now they offer the tastecard as standard along with £50 cashback upfront.
  • Santander offered 1% credit interest last year but no longer pays interest, however, it still offers its lucrative Railcard (worth £30 for one year or £70 for three years).
  • TSB is the only brand to offer a generous credit interest rate of 5% AER/4.89% gross.
  • The most generous overdraft tariffs this year are with Nationwide Building Society, HSBC and Barclays, offering up to £3,000 interest-free.

 

Battle for students as new account perks unveiled

The battle for new business by student account providers has intensified as new perks have been launched to entice those comparing deals. As the weeks countdown to the new academic year, the latest analysis by Moneyfacts.co.uk reveals how students could find some noteworthy cost-saving perks, but stresses the importance of studying the overall package before they commit.

  • Barclays launched a new perk: Perlego, the online library for free (£96 annual saving).
  • HSBC launched new perks this year: £80 in cash plus the choice of a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier (worth £9.95 a year).
  • NatWest perks tweaked from a year ago – last year a choice of perks were available, either Amazon Prime Student (usually £3.99 a month, or £47.88 over one year – free for the first six months), a Coach Card (worth £12.50 over one year or £30 over three years) or a tastecard (usual cost per year £34.99), now they offer the tastecard as standard along with £50 cashback upfront.
  • Santander offered 1% credit interest last year but no longer pays interest, however, it still offers its lucrative Railcard (worth £30 for one year or £70 for three years).
  • TSB is the only brand to offer a generous credit interest rate of 5% AER/4.89% gross.
  • The most generous overdraft tariffs this year are with Nationwide Building Society, HSBC and Barclays, offering up to £3,000 interest-free.

 

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“Student account providers have not held back with tweaking perks this year, which are enticing and could save students some cash. Unlike last year, two banks are offering a free cash incentive upon opening, namely HSBC with £80 and NatWest with £50, which was unheard of in 2020 for student accounts. Since the last academic year there is a better variety of perks, so students can debate which type of account will give them the most value based on their spending habits.

“Those looking to save some cash on study materials will find Barclays offering an online library with Perlego which would usually cost £96 a year, plus the bank continues to offer an attractive interest-free overdraft of up to £3,000. Fundamentally, a competitive overdraft may be a key factor for some students and there are other alternatives to consider. Nationwide Building Society would be a cheaper alternative for students looking to travel abroad as it does not charge for overseas use and offers a £3,000 interest-free overdraft. Elsewhere, HSBC offers an interest-free £3,000 overdraft tariff and along with the new £80 cashback for this year, it will also allow students to choose either an Uber Eats voucher worth £20 or a year of unlimited next-day delivery with ASOS Premier which is worth £9.95 a year.

“Students who expect to travel across the UK during their years of study will find NatWest has not extended its Coach Card add-on, which was worth £12.50 year, but Santander still has its lucrative Railcard on offer which is worth £30 over one year. Compared to Santander, NatWest is offering a more generous overdraft within the first few years of study and it also offers a tastecard for free which is worth £34.99 a year.

“The pandemic’s impact may have caused some anxiety amongst prospective students who are preparing to live away from home for the first time in their lives. If they have money concerns, they would be wise to speak with their family and friends for advice in the first instance, but also take some time to find a decent student account to stand by them during their years of study. Taking advantage of free mobile apps to budget and keep an eye on expenses on the go, such as with Moneydashboard, is also wise. There are undoubtedly some decent account perks this year, but students must check the overall package before they commit.”

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“Student account providers have not held back with tweaking perks this year, which are enticing and could save students some cash. Unlike last year, two banks are offering a free cash incentive upon opening, namely HSBC with £80 and NatWest with £50, which was unheard of in 2020 for student accounts. Since the last academic year there is a better variety of perks, so students can debate which type of account will give them the most value based on their spending habits.

“Those looking to save some cash on study materials will find Barclays offering an online library with Perlego which would usually cost £96 a year, plus the bank continues to offer an attractive interest-free overdraft of up to £3,000. Fundamentally, a competitive overdraft may be a key factor for some students and there are other alternatives to consider. Nationwide Building Society would be a cheaper alternative for students looking to travel abroad as it does not charge for overseas use and offers a £3,000 interest-free overdraft. Elsewhere, HSBC offers an interest-free £3,000 overdraft tariff and along with the new £80 cashback for this year, it will also allow students to choose either an Uber Eats voucher worth £20 or a year of unlimited next-day delivery with ASOS Premier which is worth £9.95 a year.

“Students who expect to travel across the UK during their years of study will find NatWest has not extended its Coach Card add-on, which was worth £12.50 year, but Santander still has its lucrative Railcard on offer which is worth £30 over one year. Compared to Santander, NatWest is offering a more generous overdraft within the first few years of study and it also offers a tastecard for free which is worth £34.99 a year.

“The pandemic’s impact may have caused some anxiety amongst prospective students who are preparing to live away from home for the first time in their lives. If they have money concerns, they would be wise to speak with their family and friends for advice in the first instance, but also take some time to find a decent student account to stand by them during their years of study. Taking advantage of free mobile apps to budget and keep an eye on expenses on the go, such as with Moneydashboard, is also wise. There are undoubtedly some decent account perks this year, but students must check the overall package before they commit.”

Student account selection table
Provider and account Interest-free overdraft Incentives
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 to 6 - up to £2,000

Free to register for Everyday Offers and It's On Us.
Earn up to 15% cashback from selected retailers.

Barclays Bank - Student Additions

Year 1 - up to £1,000

Year 2 - up to £2,000

Year 3 - up to £3,000

Earn cashback through Barclays Cashback. Blue Rewards is available as an add-on for £4 per month. Free 12-month subscription to Perlego the online library when opening a Student Additions account. Offer available between 20.9.20 and 31.12.21

Halifax - Student

Year 1+ - up to £1,500

Cashback Extras - Earn up to 15% cashback from selected retailers.
Credit interest of 0.10% AER/gross.

HSBC - Student Bank Account

Year 1 - at least £1,000
Year 2 - up to £2,000
Year 3 - up to £3,000

Preferential savings rates. £80 cash reward, plus the choice plus the choice of a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier, when 5 debit card transactions are made within a month of opening the account

Lloyds Bank - Student

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 to 6 - up to £2,000

Free to register for Everyday Offers and It's On Us.
Earn up to 15% cashback from selected retailers.

Nationwide Building Society - FlexStudent

Year 1 - up to £1,000
Year 2 - up to £2,000
Year 3+ - up to £3,000

No charges for using debit card abroad.

NatWest - Student

Year 1 - up to £2,000
(1-4 months £500,
5 months+ £2,000)
Year 2 to 5 - up to £2,000

£50 cash and tastecard valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping.
Free 24/7 Emergency Cash Service.

Royal Bank of Scotland - Student

Year 1 - up to £2,000
(1-4 months £500,
5 months+ £2,000)
Year 2 to 5 - up to £2,000

£50 cash and tastecard valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping.
Free 24/7 Emergency Cash Service.

Santander - 123 Student Current Account

Year 1 to 3 - up to £1,500
Year 4 - up to £1,800
Year 5 - up to £2,000

Free 4-year 16-25 Railcard for new customers including discounts on other activities.
Earn up to 15% cashback from selected retailers.
Preferential rates, offers and discounts at 123 World.

TSB - Student

Year 1 - up to £1,500
(0-6 months £500
7-9 months £1,000
and 10-12 months £1,500)
Year 2 to 6 - up to £1,500

Credit interest of up to 5% AER (4.89% gross).

The list of student accounts is only a selection. All overdrafts are subject to the applicant’s status.

Source: Moneyfacts.co.uk.

Student account selection table
Provider and account Interest-free overdraft Incentives
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 to 6 - up to £2,000

Free to register for Everyday Offers and It's On Us.
Earn up to 15% cashback from selected retailers.

Barclays Bank - Student Additions

Year 1 - up to £1,000

Year 2 - up to £2,000

Year 3 - up to £3,000

Earn cashback through Barclays Cashback. Blue Rewards is available as an add-on for £4 per month. Free 12-month subscription to Perlego the online library when opening a Student Additions account. Offer available between 20.9.20 and 31.12.21

Halifax - Student

Year 1+ - up to £1,500

Cashback Extras - Earn up to 15% cashback from selected retailers.
Credit interest of 0.10% AER/gross.

HSBC - Student Bank Account

Year 1 - at least £1,000
Year 2 - up to £2,000
Year 3 - up to £3,000

Preferential savings rates. £80 cash reward, plus the choice plus the choice of a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier, when 5 debit card transactions are made within a month of opening the account

Lloyds Bank - Student

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 to 6 - up to £2,000

Free to register for Everyday Offers and It's On Us.
Earn up to 15% cashback from selected retailers.

Nationwide Building Society - FlexStudent

Year 1 - up to £1,000
Year 2 - up to £2,000
Year 3+ - up to £3,000

No charges for using debit card abroad.

NatWest - Student

Year 1 - up to £2,000
(1-4 months £500,
5 months+ £2,000)
Year 2 to 5 - up to £2,000

£50 cash and tastecard valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping.
Free 24/7 Emergency Cash Service.

Royal Bank of Scotland - Student

Year 1 - up to £2,000
(1-4 months £500,
5 months+ £2,000)
Year 2 to 5 - up to £2,000

£50 cash and tastecard valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping.
Free 24/7 Emergency Cash Service.

Santander - 123 Student Current Account

Year 1 to 3 - up to £1,500
Year 4 - up to £1,800
Year 5 - up to £2,000

Free 4-year 16-25 Railcard for new customers including discounts on other activities.
Earn up to 15% cashback from selected retailers.
Preferential rates, offers and discounts at 123 World.

TSB - Student

Year 1 - up to £1,500
(0-6 months £500
7-9 months £1,000
and 10-12 months £1,500)
Year 2 to 6 - up to £1,500

Credit interest of up to 5% AER (4.89% gross).

The list of student accounts is only a selection. All overdrafts are subject to the applicant’s status.

Source: Moneyfacts.co.uk.

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, there is no commercial influence on the way Moneyfacts.co.uk ranks products, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfacts.co.uk if you decide to source this information.

For more information about us please see our key facts.

 

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, there is no commercial influence on the way Moneyfacts.co.uk ranks products, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfacts.co.uk if you decide to source this information.

For more information about us please see our key facts.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
Rachel Springall Press Officer / Finance Expert
Eleanor Williams Press Officer / Finance Expert