By 
The start of the academic year is fast approaching, school leavers are about to receive their A-level results and banks are once again battling for the custom of new university students.
Ahead of the new term starting in September, freshers can take advantage of the many incentives being offered by banks. This year offers include free railcards, subscriptions to streaming service Amazon Prime and interest-free overdrafts.
Those attending university in September are able to open an account as soon as they have their place confirmed, meaning most people will be eligible once A-level results are revealed on Thursday.
Which student bank account should I open?
Banks are desperate for students to open one of their current accounts. They know that people rarely change banks and those who open accounts at a young age may be a customer for life.
Banks offer a raft of incentives to persuade students to open an account. These include cashback offers, free railcards and preferential savings rates.
All banks offer interest-free overdrafts to student customers and the limits tend to increase each year. However Rachel Springall of Moneyfacts, the analyst, urged students to budget and avoid using overdrafts where possible.
She encouraged the use of budgeting apps and told new scholars to make the most of the students discounts offered by retailers and restaurants.
The most attractive student accounts this year are the Santander 123 Student Account, which offers customers a four-year 16-25 railcard, which normally costs £30 a year. This allows users to save a third of rail fares and is ideal for students who will travel to university by train or plan to return home frequently.
What is the best student bank account 2020?
Elsewhere, NatWest and the Royal Bank of Scotland offer customers a choice of incentives. One option is a free 12-month Amazon Prime subscription, worth £39, plus a £10 Amazon gift voucher. Students could also pick a free four-year National Express Coachcard, saving £12.50 a year, or a Tastecard, which offers restaurant discounts.
Ms Springall said: “This may well be a challenging year to start further education due to the uncertainties surrounding the coronavirus pandemic and the potential financial pitfalls it has instilled.
“However, for those who are determined to start a course this September, making smart financial choices now and finding a suitable student bank account is a good start.”
Ms Springall said both Halifax and Sanatander offered overdrafts of up to £1,500 in the first year but warned students that any outstanding overdrafts would have to be paid back once their studies end.
She added: “It may be tempting to dip into a generous interest-free overdraft, but students would be wise to consider taking on a part-time job and perhaps thinking of ways to save some cash if they can.”
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