The Best Student Bank Accounts (Get Free £200 to Switch)
Today, we're diving into the best bank accounts for uni students. Finding the right account can be a game-changer saving and sometimes making you hundreds of pounds! We're talking crazy welcome bonuses, high interest rates, building great credit and maybe even some sweet cashback rewards. So, if you're ready to level up your banking game and save some moolah, keep reading to discover the top bank accounts for uni students. Let's dive in!
Get £200 just for switching bank
To be eligible for the switch bonuses below, you need to use the Current Account Switch Service to close and switch your old account, which can be done through your new bank. This nifty service takes care of transferring all your payments, direct debits, and standing orders to your new account, automatically.
HSBC advance are currently offering a FREE £200 just to switch over to them. There is no minimum monthly pay-in required so it’s very easy to take advantage of. You must not have an HSBC account already and you can’t have opened an account with First Direct (their sister bank) since 1st Jan 2020. You must have 2 or more direct debits or standing orders. You must pay-in a minimum of £1,500 within 60 days. You will receive the £200 within 20 days of meeting the requirements.
Natwest select has a similar bonus. Again they are offering £200 for switching. To qualify you can't have had switch cash from NatWest, RBS or Ulster since October 2017. You must pay-in £1,250 or more in the first 60 days. In 7 days you will receive the bonus.
First direct 1st account offer £175 to switch. You can’t have had any HSBC account or first direct account since Jan 2020. You must pay in £1,000 within 3 months. You’ll get rewarded after 28 days.
Longer term rewards
For students the Chase debit card is a great option. It offers a savings account currently paying 3.1% and you can move your money from your savings account to spending account (with associated debit mastercard) with just a few taps. So, don’t leave any spare cash sitting around not earning any interest. For example £1,000 in the savings account will earn £2.58 every month. That’s £2.58 you’ll likely miss out on if you leave it in a current account.
Chase also gives you 1% cashback on all spending for your first year. So, spend £5,000 on everyday expenses and you’ll get £50 cashback.
If you are looking for a higher interest rate and don’t mind opening a separate account some good options are: Chip 3.55%, Tandem 3.5%, Family BS 3.4% Sainsbuy’s Bank 3.22%.
0% overdrafts
If you are in need of a large overdraft with no interest all the highstreet banks offer large interest free overdrafts upto £2k-£3k for students. Applying for these may effect your cedit rating and if you have no credit history you may be rejected. If you have a large interest free overdraft that you aren’t using you could make some money by putting it into a high interest savings account, £2k in the chip account would generate £71 a year in interest.
Remember it’s important to understand the terms of your overdraft and make sure you pay off any debt in full before your interest free period expires.
No credit history?
It’s a good idea to start building a positive credit history. You must pay off your credit card in full each month or you will be charged expensive interest. You can set up a direct debit so that this is done automatically from another bank account.
If you have a credit card use it every month for a few regular, small purchases. This will start to build a history. If you don’t have one it’s worth asking your bank if they will offer you one. Failing that there are a few credit cards specifically designed for people with limited credit history, some good options are: Tesco Bank Foundation, Asda Select (also gives you asda pounds cashback), Capital One.
Only apply for one at a time and if rejected do not reapply. Do not use a credit card to withdraw cash.
A good credit score will help you if you want to lease a car, get a mortgage or a loan. It can also help lower mobile contract costs and make it easier to rent property. Generally it means you’ll pay lower interest on any debt.
Never go into debt without a clear and realistic plan to pay off the debt.
Wrap Up
Finding the right student bank account can be a game-changer for your finances. From crazy welcome bonuses to high interest rates and cashback rewards, there are plenty of options available to help you save money and build your credit score. Whether you're looking to switch banks for a quick £200, earn interest on your savings, or get a 0% overdraft, there's a bank account out there for you. So, take some time to do your research, compare the different options, and choose the best bank account that fits your needs.