BANKS are trying to lure students with a variety of perks, including over-drafts of up to £3,000, a free four-year railcard, £80 in cash or five per cent interest on savings.
Hundreds of thousands of teenagers will be heading off to university this autumn and banks want their business — with some launching new incentives.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Banks have not held back with tweaking perks this year.
“Unlike last year, two banks are offering a free cash incentive – HSBC with £80 and NatWest £50.
“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.”
James Andrews, of money.co.uk, said: “While a £20 takeaway voucher may seem like the best option, opting for an account that will save you money with interest-free borrowing is a better option in the long run.”
The most generous overdraft tariffs this year are with Nation-wide Building Society, HSBC and Barclays, offering up to £3,000 interest-free.
TSB is the only brand to offer a generous credit interest rate, of five per cent.
Santander offered one-per-cent credit interest last year but no longer pays interest.
However, it still offers its lucrative student railcard (worth £30 for one year or £70 for three years). In the table above, we run through the details of what banks are offering.
For parents with young children, now is the time to start saving to cover future study.
By investing £175 into a junior ISA each month, according to analysis by Fidelity International, parents could generate enough to help kids cover their uni costs by the time they reach 18.
Source: The Sun