Student Bank Accounts 2023/24 – here’s what’s on offer

With A Level results due to be announced on 17th August, many students will be busy making their accommodation and travel arrangements, ready for their Autumn start at University.

Another item high on the Uni to-do list is sorting out a Student bank Account, so here’s a run down of what the banks are offering this year.

Student Banking  2023	Maximum interest free overdraft limit £					Credit Interest
	Year 1	Year 2	Year 3	Year 4	Year 5
Santander 123 Student	£1,500 (Must pay in min of £500every 4 months)	£1,500	£1,500	£1,800	£2,000	Nil
Incentives Free 4-year 16-25 Railcard (worth up to £100) Access to Santander ‘boosts’ – cashback offers at Greggs, Tesco, Café Nero and other retailers
Halifax	£1,500	£1,500	£1,500	£1,500	£1,500	0.50% Gross
Incentives £100 incentive if you pay in a minimum of £500 by 31 Oct 2023 Up to 15% cashback with selected retailers including Costa, just Eat and Sainsbury’s
NatWest/RBS	£2,000 (Tiered – 500 first term up to £2,000 second term onwards)	£2,000	£3,250	£3,250	£3,250	Nil
Incentive £100 cash plus 4-year free Taste card (worth £160)
HSBC	£1,000	£2,000	£3,000	£3,000	£3,000	Nil
Incentives £100 cash if you make a minimum of 5 qualifying debit card transactions in the first 30 days 1 Year free subscription to Headspace Access to 5% egular Saver account
Lloyds Bank	£1,500 (Tiered £500 1st 6 months then £1k months 7 to 9).	£1,500	£1,500	£2,000	£2,000 And year 6	2.00% Gross
Incentives £100 incentive if you pay in a minimum of £500 by 31 Oct 2023 Up to 15% cashback with selected retailers, including Costa, Co-op and Sky.
Nationwide Building Society FlexStudent (Must pay in at least £500 per term)	£1,000	£2,000	£3,000	£3,000	£3,000	Nil
Incentive £100 cashback within 14 days of crediting min £500 to your account. (Offer expires 15.12.2023)
TSB	Months 1-6 up to £500, months 7-9 up to £1000, month 10 onwards up to £1500	£1500	£1500	£1500	£1500 and year 6	5% AER/4.89% gross variable interest on balances up to £500
Incentives None
Barclays Student additions	£500 at opening and Max £1,000 in year 1	£1,500	£1,500	£1,500	£1,500	Nil
Incentives Free 12-month subscription to Perlego’s online library of books, academic texts and tools.

Andrew Hagger, Personal Finance Expert for Moneycomms recommends:

Choose a student bank account with the biggest 0% agreed overdraft limit

Seriously consider a student bank account that comes with the largest interest free overdraft – some banks may only offer £1,500 or £2,000 but HSBC and Nationwide are both offering up to £3,000 from year 3 and NatWest up to £3,250 (subject to application)

That extra £1,000 per year interest free will be far more financially rewarding than the standard freebies typically offered to students.

Be aware that interest free overdraft limits advertised are the maximum that are available – often the bank will say ‘up to’ £X so it’s not guaranteed you’ll get the full amount.

Avoid taking out a credit card if possible

Your bank will be keen to offer you a credit card when you sign up for your bank account but think twice before signing on that dotted line.

Yes, a credit card can give you some extra flexibility, but unless you are able to clear your balance in full each month, you’ll get stung by interest charges of around 20% APR and those additional costs will only put pressure on an already stretched student budget.