What the banks are offering students
What the banks are offering students
Don't choose your student account on the basis of perks alone. For most students it's the size of the interest-free overdraft on offer that will matter most. So go for the best deal to help you survive, rather than some freebie gadget. Also check out what it'll cost you if you should dip too far into the red – some accounts charge tons more for unauthorised overdrafts than others.
And when it comes to the perks, consider which will save you the most. Will discounted CDs really be more useful than a rail card, for example?
Abbey
Account name & credit interest rate
Abbey Student; 4%
Maximum interest-free overdraft per year
Year 1 - £1,000Year 2 - £1,250Year 3 - £1,500Year 4 - £1,800Year 5 - £2,000
Unauthorised overdraft charges
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Interest charged at 28.7%; one £25 monthly fee plus another fee for each transaction based on size - costing £5 if transaction up to £9.99; £15 if transaction £10-£19.99; £25 if transaction £20-£29.99; and £35 if transaction £35 or more.
Main perks
£50 cash incentive
Credit card limit
Students can apply for the Abbey credit card separately, although acceptance is not guaranteed with the student account.
Barclays
Account name & credit interest rate
Barclays Student Additions; 0.1%
Maximum interest-free overdraft per year
Year 1 - £1,000Year 2 - £1,250Year 3 - £1,500Year 4 - £1,750Year 5 - £2,000
Unauthorised overdraft charges
From August 18: no interest charged. Single flat fee of £22 per five days use of "Barclays Personal Reserve" limit. Any payments made above Personal Reserve limit are bounced. £8 per item fee charged for any returned or guaranteed transaction, capped at 5 per day.
Main perks
Six free cinema tickets for opening an account by October 31 plus further six free tickets for opening a Student Barclaycard by October 31 and making at least one retail purchase on card before December 31.Mobile phone banking
Credit card limit
£600
Co-operative bank
Account name & credit interest rate
The Co-operative Bank Student; 0%
Maximum interest-free overdraft per year
Year 1 - £1,400Year 2 - £1,700Year 3 - £2,000
Unauthorised overdraft charges
Annual interest 15.9%; no fees
Main perks
Customer-led ethical policy specifying where bank will and will not invest accountholders' money e.g. does not invest in any business that supplies arms to oppressive regimes.
Credit card limit
£250
Halifax
Account name & credit interest rate
Halifax Student; 2%
Maximum interest-free overdraft per year
Up to £3,000
Unauthorised overdraft charges
Interest charged at 24.2%; fees of £28 per month plus £20 per item that puts account into unauthorised red (maximum one per day)
Main perks
25% off AA membership for one year20% discount on card care insurance
Credit card limit
£500
HSBC
Account name & credit interest rate
HSBC Student Service; 5.84% on balances up to £1,000 in first year.
Maximum interest-free overdraft per year
Year 1 - £1,000Year 2 - £1,250Year 3 - £1,500Year 4 - £1,750Year 5 - £2,000
Unauthorised overdraft charges
Interest charged at 3% above Bank of England base rate; no fees
Main perks
Two years' free annual travel insuranceATM alert when overdraft limit is about to be exceededOnline student microsite at talkingmoney.hsbc.co.uk plus online budgeting tools"Go Green" environmentally-friendly option available - students can choose to switch off their paper statements
Credit card limit
£500
LloydsTSB
Account name & credit interest rate
Lloyds TSB Student*; 0.1%
Maximum interest-free overdraft per year
Year 1 - £1, 500 (tiered £500 in first six months; £1,000 in months 7-9; £1,500 thereafter)Year 2 & 3 - £1,500Years 4,5,6 - £2,000
Unauthorised overdraft charges
Annual interest 8.2%; no fee first time it happens - thereafter flat monthly fee of £15 plus daily fee costing £6 per day if overdraft less than £25; £15 if overdraft £25-£100; £20 if overdraft over £100
Main perks
£20 cash when account opened + £20 each time you recommend a friend up to max. £80 for four friends.NUS Extra Card giving discounts on books, clothes, travel, DVDs, CDs, computers and phones at high street retailers.Free one-year YHA membership 35 free eMusic downloadsFree weekly mini statement and balance updates by text
Credit card limit
£500
Lloyds TSB also offers an Islamic Student account with all the same perks designed to meet the requirements of Islamic (Shariah) law. It neither charges nor receives interests and money held is not invested in certain industries, such as gambling or alcohol, which conflict with Islamic law.
Natwest
Account name & credit interest rate
NatWest Student; 0.1%
Maximum interest-free overdraft per year
Year 1 - £1,250Year 2 - £1,400Year 3 - £1,600Year 4 - £1,800Year 5 - £2,000
Unauthorised overdraft charges
Annual interest 17.81%; no fees
Main perks
Five-Year Railcard worth £120 giving one third of most rail fares in Great Britain & discounts at retailers including Topshop, Domino's Pizza and Cineworld£100 off a laptop & £50 off mobile broadbandOpen account before October 31 and get a free webcam
Credit card limit
£500
Royal Bank of Scotland
Account name & credit interest rate
RBS Student Loyalties; 2%
Maximum interest-free overdraft per year
Up to £2,750
Unauthorised overdraft charges
Interest charged at 29.84%; no fees
Main perks
For students in Scotland: choice of £100 cash or travel package with three-year Railcard worth £72 plus four weeks' free bus travel in Edinburgh, Glasgow or Aberdeen worth up to £38.For students in England & Wales: money-saving offers worth £146 incl. £100 off laptop & £50 off mobile broadband; discounts on shopping, entertainment & selected holidays; free webcam with online applications.
Credit card limit
£500
• Information for chart, commissioned by Alice Woolley
guardian.co.uk © Guardian Newspapers Limited 2008
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