Seven are now offering students £100 cash to sign up

• Seven banks are now offering £100 cash to students opening current accounts
• This is a 250% increase on the number of banks offering cash bribes last year
• Our round up of the student current account deals on offer

The number of student bank accounts offering a £100 cash incentive upon opening has shot from just two last year to seven today – a rise of 250 per cent.

Lloyds Bank, Bank of Scotland, Halifax, HSBC, Nationwide Building Society, NatWest and Royal Bank of Scotland are all offering youngsters heading to university a £100 cash bung to open a student bank account with them.

This the highest number of providers doing this in recent years.

In addition to cold hard cash, many banks are also offering interest-free overdrafts and Santander is offering a free four-year rail card.

Katie Brain, consumer banking expert at Defaqto says: ‘The main incentive for student accounts this year is cash.

‘Seven major banks offering cashback to students is the most we have seen in some time. Last year there were only two offering a £100 cash, HSBC and Nationwide, plus two offering £80, NatWest and Royal Bank of Scotland.

‘Providers are really competing for new student accounts this year because they see them as the next generation to hold their finances with them.’

Here are all the current student account deals on offer and what you need to do to get them.

Best student bank account offers

HSBC

HSBC is offering £100 cashback to those that open its student bank account, which has an interest-free overdraft. 

Students will need to make five transactions within 30 days to get the £100 cash reward. To apply, you’ll need to be 18 or over and have a confirmed place on a qualifying course at a UK university or college

HSBC won’t pay pay the £100 into your account for up to 30 days, though.

There is also a one-year free subscription to mindfulness app Headspace on offer. 

The interest-free overdraft is £1,000 for the first year, which could increase to £2,000 in year two and £3,000 in year three. 

NatWest and RBS

Students opting to open a student current account with NatWest or RBS will get £100 in cash. They will receive it within 10 days of opening the account.

There is also an interest-free overdraft of up to £2,000 available, and students can then apply to increase that to £3,250 from year three onwards.

NatWest and RBS are also offering students an annual Tastecard, worth £39.99 per year. With this, students can get 2 for 1 meals, 50 per cent off a food bill or 25 per cent off your entire bill at thousands of UK restaurants.

Lloyds Bank, Halifax and Bank of Scotland

The Lloyds Banking Group, which comprises Lloyds Bank, Halifax and Bank of Scotland, are all offering £100 cash to students who open a student current account.

To get the deal you need to open an account and deposit at least £500 by 31 October 2023. You will then receive the £100 reward into your account by the end November.

Students can also get an interest-free overdraft of up to £1,500 in years one to three, and up to £2,000 in years four to six.

Students can also receive up to 15 per cent cash back with selected retailers with a LLoyds Bank, Halifax or Bank of Scotland student current account.

These banks are also giving 2 per cent interest on account balances up to £5,000.

Nationwide Building Society

Nationwide Building Society has relaunched its FlexStudent current account to give students £100 cash after they open an account.

However, students are being warned to act fast as it is a ‘limited-time offer.’ To get the money, you need to open a FlexStudent account and meet all Nationwide’s eligibility criteria.

Students will receive the £100 within 14 days of crediting £500 to their FlexStudent account, which must be done by 15 December 2023.

They can request an interest-free overdraft of up to £1,000 in the first year, up to £2,000 in their second year and a maximum of £3,000 in year three. 

Other student bank account perks 

Santander

Santander’s 123 Student Current Account comes with a free four-year Santander 16-25 Railcard, which allows the user to save a third on rail travel.

Those aged 16-25 usually have to pay £30 a year for a rail card. Santander claims their offer could save students up to £159 a year on rail travel, or £636 in total over the four-year period.

Santander is also offering students an interest-free overdraft of £1,500 in years one to three, £1,800 in year four and £2,000 if they stay on to year five.

TSB

TSB offers an interest rate of 5 per cent on balances in its current student account, but only up to £500.

Students opening a TSB bank account can also apply for an interest-free overdraft of up to £1,500.

Defaqto’s Katie Brain says: ‘Some students may benefit from the interest earned on the balance of the account. Lloyds Bank offers 2 per cent interest up to £5,000, and TSB an interest rate of 5 per cent, but this is only on £500.

‘If you are a student looking to travel abroad then Nationwide would be worth considering, as they are the only student account to offer no fees for using your debit card abroad.

‘Students should act quickly to take advantage of the cashback incentives offered as they are only available for a limited time, but choose wisely.’