Students heading off to university this autumn can claim up to £220 in freebies from high street banks, as lenders step up efforts to win over a new generation of customers. Offers include cash bonuses, food-delivery vouchers, travel perks, and interest-free overdrafts running into the thousands.
Improved offers compared with last year
A new comparison from Moneyfactscompare.co.uk reveals that several big names have upgraded their student packages compared with last year, including Lloyds, Nationwide, and NatWest, as competition intensifies ahead of the new academic year.
Among the biggest boosts is from Lloyds, which now includes up to £120 in Deliveroo vouchers alongside £100 in cash for eligible new customers. Nationwide is offering £120 of Just Eat vouchers plus £100 cashback. NatWest has also improved its offer, lifting cashback from £85 to £100 and keeping its four-year tastecard, which can be used to get discounts at restaurants.
Other notable offers
Santander is aiming its pitch at students making regular trips back home by including a free four-year 16–25 Railcard, worth around £115. TSB takes a different approach, paying 5% interest on the first £500 held in the account.
Moneyfacts says students shouldn't pick an account based purely on freebies and should also weigh up the size of the interest-free overdraft, which could be more useful across a three-year degree.
Overdraft limits
On overdrafts, the highest limits in the comparison come from NatWest and Royal Bank of Scotland, where students can build to an interest-free overdraft of up to £3,250 by the end of their course. HSBC and Nationwide follow with limits of up to £3,000.
Best student account deals at a glance
- Lloyds - £100 cash + up to £120
- Nationwide - £100 cash + £120 Just Eat vouchers
- NatWest - £100 cashback + four-year tastecard
- RBS - £100 cashback + four-year tastecard
- Santander - 4yr Railcard worth £115
- HSBC - Shopping/leisure discounts
- TSB - 5% interest on first £500
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said students should look beyond the headline incentives. She 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."
She warned that while a bigger overdraft can act as a financial buffer during term time, it is still borrowing that will need to be paid back.
Eastell added: "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."
She also encouraged students to use in-app budgeting tools and to check what financial support may be available through their university.
