As students are receiving their exam results and gearing up for the new academic year, the experts at Save the Student have divulged information on the prime bank accounts for teens in 2024/25, many featuring perks such as a free cash incentive or a hefty interest-free overdraft of up to £3,000.
Tapping into years of expertise, the Save the Student team has reviewed this year’s banking options for students.
With growing financial hurdles faced by many during their education, emphasis was placed on the level of interest-free overdrafts offered and how likely students were to get them.
The assessment also incorporated a unique factor – the Student Satisfaction scores from each bank, derived from Save the Student’s own Student Banking Survey. A comprehensive guide comparing the top 10 banking choices is accessible on their website.
Tom Allingham of Save the Student, banking expert, said: “This year’s selection of student accounts is particularly strong, and the majority of banks are offering some kind of sign-up bonus to draw in new customers.”
He said: “But given that our most recent Student Money Survey found that, on average, Student Loans now fall short of living costs by £582 per month, I’d argue that a larger 0% overdraft is far more useful than almost any freebie, including cash.”, reports the Daily Record.
The expert said: “This safety net represents one of the safest, most easily-accessible and all-round best sources of extra cash while at university. Were you to compare an account with a £3,000 overdraft and no freebie, to one with a £2,000 overdraft and a £100 freebie, I would almost always recommend going for the former.”
He advised further: “That said, you should check whether an overdraft is guaranteed, or if it’s ‘up to’ a certain amount. For example, while NatWest and RBS offer the largest overdrafts on paper – and anecdotally your chances of getting the maximum amount are fairly high – it’s not a sure thing. On the other hand, Santander has said all students will get the full £1,500, while Nationwide guarantees £1,000 to all first-year students.
“It’s vital that students think about whether or not to risk going for a larger interest-free overdraft that they might not receive, or opt for an account with a slightly smaller, but ultimately guaranteed, allowance.”
The top three student bank accounts the analysis recommended are:
NatWest/RBS Student Account
- Overdraft: up to £3,250
- Joining incentive: £100 cash and 4-year Tastecard
Santander Edge Student Current Account
- Overdraft: £1,500 guaranteed
- Joining incentive: 4-year Railcard and chance to win tuition fees
Nationwide FlexStudent
- Overdraft: up to £3,000
- Joining incentive: £100 cash and £120 Just Eat vouchers
Comprehensive evaluations and customer satisfaction scores for banks can be accessed here.
