Top student bank account perks for September 2024

From interest-free overdrafts to exclusive discounts and vouchers on rail travel, food and more, student current accounts can offer a range of perks.

Whether you’re a fresher about to start university in September or in the middle of your studies wanting to take advantage of the latest student current account deals, there are a number of accounts to choose from.

Many of the major high street banks offer a range of perks alongside their student current accounts, and the experts at Moneyfactscompare.co.uk have analysed the latest deals.

“Money management is a key life skill and for some students this will be the first time they have been away from home, which can be daunting,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, noted.

“However, there are various ways for students to keep on top of their finances, such as with online or mobile banking and by using budgeting apps. It’s also worthwhile for them to look into other ways to save some cash, such as with student discount offers and cashback when they spend,” she continued.

Below we highlight some of the top student bank account deals and perks available this academic year.

Interest-free overdrafts

An interest-free overdraft is one of the most popular features of a student bank account as it provides a financial buffer and can help students manage their costs.

Most student current accounts come with an interest-free overdraft, with many providers offering up to £1,000 for first-year students and increasing this in subsequent years.

NatWest and Royal Bank of Scotland both offer an interest-free overdraft of up to £2,000 in the first two years of study (up to £500 in the first four months), and students can increase this to up to £3,250 in years three to five.

This is the longest interest-free overdraft on offer, although HSBC and Nationwide BS come close by offering up to £3,000 in year three.

As well as an attractive interest-free overdraft, NatWest and RBS also offer students £100 cash and a tastecard that provides 50% off food or two for one meals at selected restaurants for four years, in addition to offers on leisure and entertainment.

Discounted rail travel

Students who regularly use the train may be interested in Santander’s Edge Student Current Account as this comes with a free 16-25 railcard. This card offers one-third off rail travel and is valid for four years, so regular train users could save a significant amount of money by using it.

Santander also offers an interest-free overdraft of up to £1,500 for students on a three-year course (as long as they pay in at least £500 to their account each term) alongside a range of other deals, including cashback, vouchers and prize draws through its Santander Boosts scheme.

As an extra perk, students who open a Santander Edge Student Current Account between 15 July and 30 September 2024 and pay in a minimum of £500 will also be entered into a prize draw where they could win a prize of either £27,750 or £9,250.

Earn 5.00% AER on up to £500

Students looking to maximise the money in their current account could consider TSB’s student account that pays 5.00% AER on balances up to £500. This is competitive when compared to the top variable savings rates, but it may still be worth opening a savings account alongside the current account to start to build up a savings pot.

TSB also offers 25% discount on breakdown cover with The AA and other exclusive offers with its student account.

Fee-free spending abroad

Students who are studying a foreign language at university or planning some trips abroad during the holidays may be interested in the FlexStudent bank account from Nationwide BS which doesn’t charge any fees to use its debit card abroad.

Additionally, students can receive £100 in cash and £10 of Just Eat vouchers per month for 12 months, which can ensure they eat more than cereal and instant noodles in their first year! They need to pay in at least £500 before 13 December 2024 to receive these perks.

Cashback offers

Elsewhere, Halifax and Lloyds Bank offer up to 15% cashback at selected retailers with their student current accounts, alongside an interest-free overdraft up to £1,500 (Halifax) and £2,000 (Lloyds Bank).

Any students not in their overdraft can earn interest on their money as Halifax pays 0.50% AER on any balance while Lloyds Bank pays 2.00% AER on balances between £1 and £5,000.

However, if students are fortunate enough to have a significant sum in their current account, it may be worth moving this money to a higher-paying savings account.