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Higher education

Talk to other parents whose children are preparing for university on our Higher Education forum.

Original poster

Which is the best student account?

12 replies

Shimy · 04/03/2019 20:05

According to Marting Lewis, MoneyExpert.com they are:

Nationwide
HSBC
Santander

The main selling point to look out for seems to be wether there is an overdraft, and whether this is guaranteed or up to and of course the associated freebies but to be wary of these eg railcard etc.

We are new to this and slightly concerned about banking culture that encourages young people to borrow money which is essentially what an overdraft is. It's not really teaching them to live within their means is it?

My question is what are mners doing? am i behind the times and accounts with guaranteed large overdrafts are the way to go? are there any better banks that you've used? thank you.

OP posts:
BackforGood · 04/03/2019 21:22

When both of mine researched this, they both (independently) came up with Santander as being the best.
I don't think having an overdraft facility, where you don't get charged for going overdrawn is necessarily and encouragement to go overdrawn. I suspect all student accounts have that anyway though.
One thing I think is a plus, is if there is a branch they can get to ? I know student age people tend to do all their banking via their phones, but it is handy sometimes to be able to go in a speak to a real person, IMO.

Original poster
Shimy · 04/03/2019 21:38

Funny you should mention about the proximity of a branch, becuase in Martin Lewis's bank profiling he said not to be swayed just because of a branch nearby because most banking will be done online. But i agree with your point, that's sometimes its just easier to see someone face to face, moreso for young students who are new to the banking.

OP posts:
starfleet · 05/03/2019 15:29

DS banks with Nationwide. He had a FlexOne account with them that he has still kept open as his wages go in but opened a student account with them before he went to university.

The overdraft is interest and fee free. As he didn't want the full overdraft amount (it's optional so they don't have to have it) they changed it to a lower figure and said he can increase it if he needs to.

There were no freebies (apart from the gift box they sent him full of popcorn/chocolate/card games etc) as offered by other banks i.e., railcard, vouchers etc.

Our branch is quite small and he was registered with their student advisor who he can contact directly via phone/email. There is also a branch in his university city.

Rade · 05/03/2019 15:44

My two both went with Santander because they got interest paid on credit balance up to £2k. They also got a Railcard and after graduation it became a graduate account which also pays interest. They have never gone overdrawn.

DOLLYDAYDREAMER · 05/03/2019 18:52

both my dd's had santander teens accounts which change into either adult or student account by age 19. all pleased with them. easy to deal with. they do it all online or on phone ap . free railcard for students and free overdraft. also credit interest an cashback at some places if you pay with debit card.

Original poster
Shimy · 05/03/2019 21:43

Will be getting DS down to all 3 to compare accounts as soon as he's firmed his offers.

OP posts:
OhYouBadBadKitten · 05/03/2019 22:01

dd went for santander because of the interest rate. She has a linked higher interest paying account with them too and with their app can shuffle money between them for optimum interest. However, there is a delay before she can get a credit card with them and while that doesn't sound like something that you'd want for him, it's useful down the line for building up a good credit rating.

ShanghaiDiva · 06/03/2019 05:27

ds is with nationwide and this allows him to also open a flex online saver which offers 5% interest.
He was not a uk resident prior to starting his course and therefore not eligible for an overdraft.

RedHelenB · 08/03/2019 08:37

Mine went with Barclays and has been happy with it.

AtiaoftheJulii · 10/03/2019 08:42

One of mine has HSBC (already had a railcard and they were offering £60 Amazon vouchers), one has Santander. They have both kept their previous accounts as well.

Ds has a Flex One with Nationwide atm (y13), so we're just about to start looking. I think opening one with a different bank is quite good as it keeps more savings options open.

Danglingmod · 10/03/2019 09:08

Ds won't need an overdraft so I'm not interested in that but about to do some research on the best freebies instead. Three year railcard would be good.

Danglingmod · 10/03/2019 09:10

Just had a quick look and Santander looks good.

You can apply now if you have an unconditional offer!

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