- New students focusing on freebies may miss out on the best deals
Kevin Mountford, head of banking at moneysupermarket.com, said: "For those off to university or college getting your finances in order is crucial. There are a wide range of benefits on offer from the major providers, but a great giveaway does not necessarily mean the best deal for the student. The value of freebies is very low when compared to interest free overdrafts, so students should make sure they choose an account for the right reasons.
"With the high cost of studying and living away from home it is a rare student who doesn't run up an overdraft, so the importance of securing a competitive deal cannot be underestimated. Whilst students should never borrow unless absolutely necessary, picking the right interest free overdraft can offer a degree of flexibility when budgeting. In general, overdraft limits are increased year by year, but the Halifax account can offer up to £3,000 from day one, although it's worth remembering that this will need to be paid back eventually!
"The likelihood is we will see more products launched before the new term starts, but students should make sure they don't get seduced by headline rates and flashy giveaways. The Abbey student account puts money straight into your pocket by offering £50 cashback when you open an account and has an in-credit interest rate of two per cent for the first £500, while HSBC offers two per cent on balances of up to £1,000 and an interest-free overdraft of up to £2,000."
The four questions savvy students should ask are:
- What interest-free overdraft can I get?
- What other charges might I be subjected to?
- Is there a branch nearby?
- And finally - what are the freebies?
|
Account |
(AER) |
Maximum Interest Free Overdraft Limit |
Benefits |
|
HSBC Student Bank Account |
2.00%
(up to £1,000 in first year of university)
0% thereafter |
£2,000 |
2 years free worldwide travel insurance if a lump sum of £250 is credited to the account between 1st August and 31st October 2009;
Special deals on computers available with Dell;
Discounts on music and DVDs available with cdwow. |
|
Abbey Student Account |
2.00%
(up to £500)
0.1% thereafter |
£2,000 |
£50 cashback when account is opened. |
|
Halifax Student Current Account |
0.10% |
£3,000 |
25% off AA membership;
20% discount on Card Care insurance;
Commission free foreign currency and Travellers Cheques;
All Student benefits are available for 12 months after course ends. |
|
Royal Bank of Scotland Student Royalties Account |
1.02% |
£2,750 |
£100 off Asus Laptops;
£10 worth of credit plus USB modem for £19.99 from 3 Mobile;
RBS Payment Card Protection worth up to £20;
25% off gigs and shows;
Discount card offering up to 20% off at selected retailers;
2-for-1 cinema tickets at Vue Cinemas;
10% off flights and holidays booked through Royalties membership services;
Free USB memory stick. |
|
Lloyds TSB Student Account |
0.10% |
£2,000 |
Free NUS Extra Card;
Commission free travel money and non-sterling American Express Travellers Cheques;
Save up to £75.99 on driving lessons with The AA;
Free YHA membership for a year;
35 free music downloads from eMusic;
Free text alerts, Internet and Telephone Banking. |
|
Barclays Student Additions Account |
0.10% |
£2,000 |
Exclusive Orange Mobile Broadband offers;
Mobile banking. |
|
NatWest Student Account |
0.10% |
£2,000 |
Free 5 year 16-25 Railcard worth £125;
Discount card offering up to 20% off at selected retailers;
£100 off Asus Laptops;
£10 worth of credit plus USB modem for £19.99 from 3 Mobile;
Free USB memory stick. |
- ENDS -
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