Brand Logo Moneyfacts Group plc
Telephone Icon T: 01603 476476 Email Icon E: enquiries@moneyfacts.co.uk LinkedIn Icon

Student account freebies show mixed results

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
25/07/2022

Student account freebies show mixed results

Student account packages are showing mixed results this year. As some deals improve, others have worsened. As time moves on towards the new academic year, the latest analysis by Moneyfacts.co.uk reveals a selection of noteworthy cost-saving perks.

Student account freebies show mixed results

Student account packages are showing mixed results this year. As some deals improve, others have worsened. As time moves on towards the new academic year, the latest analysis by Moneyfacts.co.uk reveals a selection of noteworthy cost-saving perks.

  • Barclays renews its Perlego freebie, an online library for free (£96 annual saving).
  • HSBC changes its perk: £100 in free cash (compared to £80 in cash last year and either a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier).
  • NatWest improves its bundle – £80 cashback upfront and a tastecard valid for four years (usual cost per year £34.99), compared to £50 with the tastecard last year.
  • Santander renews its Railcard offer (worth £30 for one year or £70 for three years).
  • TSB continues to offer a generous credit interest rate of 5% AER/4.89% gross.
  • The most generous overdraft tariffs this year are with HSBC and Nationwide Building Society, offering up to £3,000 interest-free. However, Barclays reduced its overdraft from up to £3,000 last year, to up to £1,500 this year.
  • Barclays renews its Perlego freebie, an online library for free (£96 annual saving).
  • HSBC changes its perk: £100 in free cash (compared to £80 in cash last year and either a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier).
  • NatWest improves its bundle – £80 cashback upfront and a tastecard valid for four years (usual cost per year £34.99), compared to £50 with the tastecard last year.
  • Santander renews its Railcard offer (worth £30 for one year or £70 for three years).
  • TSB continues to offer a generous credit interest rate of 5% AER/4.89% gross.
  • The most generous overdraft tariffs this year are with HSBC and Nationwide Building Society, offering up to £3,000 interest-free. However, Barclays reduced its overdraft from up to £3,000 last year, to up to £1,500 this year.

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

“Student account perks are showing mixed results this year, as some banks have decided to boost their free cash offers, remove perks or even reduce their interest-free overdraft facility. One of the most useful benefits a student account provides is an interest-free overdraft, and the most generous allowance of up to £3,000 is currently available from Nationwide Building Society and HSBC. Students can also get a £100 free cash inventive from HSBC this year, more than last year’s offer of £80, but the bank no longer offers a £20 Uber eats voucher or unlimited next-day delivery with ASOS Premier on top. This is the usual nature of student account packages as they are not guaranteed to be repeated year-on-year.

“Discount cards are useful for students to save themselves a bit of money when eating out or travelling. It’s positive to see Santander upholding its Railcard offer this year and, according to the bank, can save students an average of £636 over the course of the four-year offer. According to CACI*, Santander was the largest provider of student accounts in 2021, so it’s not too surprising to see other banks tweak their offers to try to entice new business this year. NatWest now offers students £80 upfront, more than the £50 last year, along with the same tastecard. However, not all banks have improved their account package, as Barclays Bank has reduced its interest-free overdraft from a limit of £3,000 to £1,500, but it has relaunched its free access to Perlego for 12 months.

“The rising cost of living will be taking its toll on everyone and students who may be living away from home for the first time will inevitably find it daunting. Costs are on the rise from all directions. According to a study from Equifax, 49% of university students and graduates said that the prospect of student debt made them think twice about taking up their place at university. Finding the right student account is crucial, which is why students must compare the whole package of any account to ensure it suits their needs. In the months to come creating a budget is wise, especially on the go, and there are free ways to make this easier such as using apps like Money Dashboard. Those struggling would be wise to speak to their family and friends for advice and remember that any overdraft they borrow will need to be paid back.”

*CACI's Current Account & Savings Database - Based on volume of new account openings.

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

“Student account perks are showing mixed results this year, as some banks have decided to boost their free cash offers, remove perks or even reduce their interest-free overdraft facility. One of the most useful benefits a student account provides is an interest-free overdraft, and the most generous allowance of up to £3,000 is currently available from Nationwide Building Society and HSBC. Students can also get a £100 free cash inventive from HSBC this year, more than last year’s offer of £80, but the bank no longer offers a £20 Uber eats voucher or unlimited next-day delivery with ASOS Premier on top. This is the usual nature of student account packages as they are not guaranteed to be repeated year-on-year.

“Discount cards are useful for students to save themselves a bit of money when eating out or travelling. It’s positive to see Santander upholding its Railcard offer this year and, according to the bank, can save students an average of £636 over the course of the four-year offer. According to CACI*, Santander was the largest provider of student accounts in 2021, so it’s not too surprising to see other banks tweak their offers to try to entice new business this year. NatWest now offers students £80 upfront, more than the £50 last year, along with the same tastecard. However, not all banks have improved their account package, as Barclays Bank has reduced its interest-free overdraft from a limit of £3,000 to £1,500, but it has relaunched its free access to Perlego for 12 months.

“The rising cost of living will be taking its toll on everyone and students who may be living away from home for the first time will inevitably find it daunting. Costs are on the rise from all directions. According to a study from Equifax, 49% of university students and graduates said that the prospect of student debt made them think twice about taking up their place at university. Finding the right student account is crucial, which is why students must compare the whole package of any account to ensure it suits their needs. In the months to come creating a budget is wise, especially on the go, and there are free ways to make this easier such as using apps like Money Dashboard. Those struggling would be wise to speak to their family and friends for advice and remember that any overdraft they borrow will need to be paid back.”

*CACI's Current Account & Savings Database - Based on volume of new account openings.

 

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.
Earn up to 15% cashback from selected retailers.

Barclays Bank - Student Additions

0-11 months £500
Year 1 - up to £1,000
Year 2 - up to £1,500

Earn cashback through Barclays Cashback.
Blue Rewards is available as an add-on for £5 per month.
Free access to Perlego for 12 months, a digital library of university textbooks, for accounts opened between 8.7.22 and 30.11.22 and redeemed before 31.12.22.

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

Receive £100 when opening and make a minimum of 5 transactions within 30 days of opening.
Eligible for Regular Saver 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.
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

Receive £80 paid to your account within 10 days from opening a new or converting an existing account, a tastecard, valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping. Must register for mobile/internet banking and choose paperless statements within 30 days of opening. Offer valid from 4.7.22 to 31.10.22.
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

Receive £80 paid to your account within 10 days from opening a new or converting an existing account, a tastecard, valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping. Must register for mobile/internet banking and choose paperless statements within 30 days of opening. Offer valid from 4.7.22 to 31.10.22.
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.
Earn up to 15% cashback from selected retailers.

Barclays Bank - Student Additions

0-11 months £500
Year 1 - up to £1,000
Year 2 - up to £1,500

Earn cashback through Barclays Cashback.
Blue Rewards is available as an add-on for £5 per month.
Free access to Perlego for 12 months, a digital library of university textbooks, for accounts opened between 8.7.22 and 30.11.22 and redeemed before 31.12.22.

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

Receive £100 when opening and make a minimum of 5 transactions within 30 days of opening.
Eligible for Regular Saver 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.
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

Receive £80 paid to your account within 10 days from opening a new or converting an existing account, a tastecard, valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping. Must register for mobile/internet banking and choose paperless statements within 30 days of opening. Offer valid from 4.7.22 to 31.10.22.
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

Receive £80 paid to your account within 10 days from opening a new or converting an existing account, a tastecard, valid for 4 years giving 50% off food or 2 for 1 meals, plus offers on entertainment and shopping. Must register for mobile/internet banking and choose paperless statements within 30 days of opening. Offer valid from 4.7.22 to 31.10.22.
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, Moneyfacts.co.uk shows whole of market data regardless of commercial bias, 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.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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, Moneyfacts.co.uk shows whole of market data regardless of commercial bias, 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.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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