Jacob Rees-Mogg slams students for removing Queen's portrait
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Savings rates remain low at the moment but according to new research from Moneyfacts.co.uk, a “battle for new business” has emerged among high street banks. A range of new account perks have been launched in recent months, specifically targeting younger savers.
Moneyfacts.co.uk noted that as the “countdown” starts to the new academic year, student bank account providers have ramped up new perk offers to entice those comparing deals.
The latest analysis from Moneyfacts.co.uk highlighted how students – and by extension, their parents – can find “noteworthy” cost-saving perks.
However, it also stressed how important it is to review the overall package before committing.
These perks are offered by some of the biggest and most well known financial institutions, as the following summary details:
- Barclays launched a new perk: Perlego, the online library for free (£96 annual saving)
- HSBC launched new perks this year: £80 in cash plus the choice of a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier (worth £9.95 a year)
- NatWest perks tweaked from a year ago – last year a choice of perks were available, either Amazon Prime Student (usually £3.99 a month, or £47.88 over one year – free for the first six months), a Coach Card (worth £12.50 over one year or £30 over three years) or a tastecard (usual cost per year £34.99), now they offer the tastecard as standard along with £50 cashback upfront
- Santander offered one percent credit interest last year but no longer pays interest, however, it still offers its lucrative Railcard (worth £30 for one year or £70 for three years)
- TSB is the only brand to offer a generous credit interest rate of five percent Average Equivalent Rate (AER)/4.89 percent gross on balances up to £500
- The most generous overdraft tariffs this year are with Nationwide Building Society, HSBC and Barclays, offering up to £3,000 interest-free.
A range of banks have offered student perks (Image: GETTY)
Specifically, the following accounts, which all offer interest-free overdrafts, provide a range of incentives:
- Bank of Scotland – Student Account, Incentives: Free to register for Everyday Offers and It’s On Us. Earn up to 15 percent cashback from selected retailers
- Barclays Bank – Student Additions, incentives: Earn cashback through Barclays Cashback. Blue Rewards is available as an add-on for £4 per month. Free 12-month subscription to Perlego the online library when opening a Student Additions account. Offer available between September 20, 2020 and December 31, 2021
- Halifax – Student, Incentives: Cashback Extras – Earn up to 15 percent cashback from selected retailers. Credit interest of 0.10 percent AER/gross
- HSBC – Student Bank Account, Incentives: Preferential savings rates. £80 cash reward, plus the choice plus the choice of a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS Premier, when five debit card transactions are made within a month of opening the account
- Lloyds Bank – Student, Incentives: Free to register for Everyday Offers and It’s On Us. Earn up to 15 percent cashback from selected retailers.
- Nationwide Building Society – FlexStudent, Incentives: No charges for using debit card abroad
- NatWest – Student, Incentives: £50 cash and tastecard valid for four years giving 50 percent off food or two for one meals, plus offers on entertainment and shopping. Free 24/7 Emergency Cash Service
- Royal Bank of Scotland – Student, Incentives: £50 cash and tastecard valid for four years giving 50 percent off food or two for one meals, plus offers on entertainment and shopping. Free 24/7 Emergency Cash Service
- Santander – 123 Student Current Account, Incentives: Free four year 16-25 Railcard for new customers including discounts on other activities. Earn up to 15 percent cashback from selected retailers. Preferential rates, offers and discounts at 123 World
- TSB – Student, Incentives: Credit interest of up to five percent AER (4.89 percent gross) on balances up to £500.
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Rachel Springall, a Finance Expert at Moneyfacts.co.uk, commented on these deals: “Student account providers have not held back with tweaking perks this year, which are enticing and could save students some cash.
“Unlike last year, two banks are offering a free cash incentive upon opening, namely HSBC with £80 and NatWest with £50, which was unheard of in 2020 for student accounts.
“Since the last academic year there is a better variety of perks, so students can debate which type of account will give them the most value based on their spending habits.
"Those looking to save some cash on study materials will find Barclays offering an online library with Perlego which would usually cost £96 a year, plus the bank continues to offer an attractive interest-free overdraft of up to £3,000.
Coronavirus has impacted savers and students alike (Image: EXPRESS)
“Fundamentally, a competitive overdraft may be a key factor for some students and there are other alternatives to consider. Nationwide Building Society would be a cheaper alternative for students looking to travel abroad as it does not charge for overseas use and offers a £3,000 interest-free overdraft.
“Elsewhere, HSBC offers an interest-free £3,000 overdraft tariff and along with the new £80 cashback for this year, it will also allow students to choose either an Uber Eats voucher worth £20 or a year of unlimited next-day delivery with ASOS Premier which is worth £9.95 a year.”
Ms Springall told worried students: “Students who expect to travel across the UK during their years of study will find NatWest has not extended its Coach Card add-on, which was worth £12.50 year, but Santander still has its lucrative Railcard on offer which is worth £30 over one year.
“Compared to Santander, NatWest is offering a more generous overdraft within the first few years of study and it also offers a tastecard for free which is worth £34.99 a year.
"The pandemic's impact may have caused some anxiety amongst prospective students who are preparing to live away from home for the first time in their lives.
“If they have money concerns, they would be wise to speak with their family and friends for advice in the first instance, but also take some time to find a decent student account to stand by them during their years of study.
“Taking advantage of free mobile apps to budget and keep an eye on expenses on the go, such as with Moneydashboard, is also wise.
“There are undoubtedly some decent account perks this year, but students must check the overall package before they commit."
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