School’s out for summer, so it’s time for students to do some research on student current accounts to find the best deal. Moneyfacts.co.uk has created a handy selection of the best accounts available (see below) so that students can easily compare the different overdraft offerings and extra benefits.

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

“Students preparing to branch out on their own and study at university may already be celebrating the summer break, but this is the perfect time for them to sort out a student bank account and not leave it until the last minute. As soon as students get their university offer letter, they should be ready to apply for a student bank account that will meet their day-to-day needs.

“The best account will entirely depend on how much the student expects to borrow, the benefits they feel are essential to have included and any additional perks. Some providers attempt to entice students with discounts or gift cards, but these incentives could be a waste if not used frequently.

“It’s worth noting that some student account discounts or cashback perks can be useful to those who shop for essential supplies or eat out with friends, and some accounts, such as HSBC’s, will also give students a free year of Amazon Prime, along with an £80 voucher.

“Halifax and Santander currently offer students a £1,500 interest-free overdraft from day one, which can be a lifeline to cash-poor students who have yet to generate income through part-time work. The best account isn’t always with the branch on campus either, so it’s important to compare deals carefully. If students have a history with debt, it’s worth getting a credit check first, as the advertised overdraft limits are not guaranteed.

“Students who are struggling with money should seek advice with the account provider by phone or online, or even visit their bank’s nearest branch for a one-to-one chat. There is also no harm in raising any concerns with parents early on to get some extra support and avoid an awkward home visit.

“If students decide to travel during their course, an account that offers a travel pass could be an important cost saver, especially if they are situated the other side of the country. Santander offers a free Railcard to 16 to 25-year-olds, saving students up to a third on most rail fares, and NatWest and RBS currently offer a free Young Persons Coachcard, which is valid for four years. Nationwide’s account is also handy for students who travel abroad, as they don’t charge fees for using its debit card.

"Clearly, there are many different perks between accounts and not one will necessarily meet every desire. However, the most lucrative will depend on a student’s financial expectations of either using an overdraft or being in credit, how often they expect to travel, or if they favour cashback or freebies.

“When students come to the end of their course and graduate, they shouldn’t assume that their current student account provider is the best choice by default for a graduate account, and it is at this stage they should prioritise paying off any overdraft they have amassed through the years.”

The list of student accounts is a selection, not a Best Buy chart. All overdrafts are subject to the applicant’s status. Additional information is available and you can find a list of graduate bank accounts on our website.

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. The site also provides informative guides and covers the latest consumer finance news, as well as offering a weekly newsletter.

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