• Lloyds Bank has boosted its student account from last year, as students can now receive up to £120 in Deliveroo vouchers. In addition, it continues to offer £100 free cash, between the end of July and the end of October, subject to conditions.
• Nationwide Building Society is once again offering Just Eat vouchers worth £120 and £100 free cash, as it did this time last year.
• HSBC continues to offer discounts and exclusive offers on dining experiences, leisure activities and shopping through HSBC Home & Away, but lacks specific student perks. 
• NatWest’s student account continues to offer a free tastecard but has improved last year’s £85 cashback to £100. 
• Santander is offering a four-year Railcard (worth £115) and customers can sign up to Santander Boosts to earn cashback.
• TSB continues to offer a generous credit interest rate of 5% AER/4.89% gross on the first £500.
• The most generous overdraft tariffs are with NatWest, Royal Bank of Scotland, HSBC and Nationwide Building Society, which were also on offer a year ago.

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“Free cash and vouchers can make one student account stand out from another, but it’s important students compare the overall package before being swayed by incentives. An interest-free overdraft could provide greater value over the course of a degree than a one-off freebie. For students who think they may need to borrow during their studies, the most generous interest-free arranged overdrafts are available from NatWest and Royal Bank of Scotland, offering up to £3,250 by the end of a degree. HSBC and Nationwide Building Society also stand out, with overdrafts rising to £3,000. However, any overdraft is subject to status and should be seen as a financial safety net rather than extra spending money. Every pound borrowed will need repaying, so taking on part-time work or sticking to a realistic budget can help avoid leaving university with unnecessary debt.

“Providers are offering a wide range of incentives to attract student customers, including cash bonuses, travel discounts and food delivery vouchers. Those travelling home regularly could save a significant amount with Santander’s free 16-25 Railcard, while students who frequently order takeaways or eat out may get more value from NatWest’s four-year tastecard or the food delivery vouchers available from Lloyds Bank and Nationwide Building Society. A handful of providers are also offering up to £100 cash, which gives students an immediate boost towards the cost of starting university. However, students should think about which perks they are most likely to use and weigh them up alongside the account’s longer-term features. 

“Starting university often means managing money independently for the first time and rising living costs have added to the pressure. Budgeting tools built into banking apps can help students track their spending before it becomes a problem, some universities may also offer financial support services that many students don’t realise exist. A student account is more than its welcome gift and the best choice is different for each student, it should support them throughout their degree, help them manage everyday finances, minimise borrowing and build healthy money habits that will last beyond graduation.”