Nationwide and Lloyds have launched an offer to give £100 cashback to students who open a student bank account, adding to the huge increase in this offer for cash-strapped students
The number of student bank accounts offering a £100 cash incentive upon opening has increased from just two last year to seven today - an increase of 250 percent.
Lloyds Bank, Bank of Scotland, Halifax, HSBC, Nationwide Building Society, NatWest and Royal Bank of Scotland are all offering students £100 cashback to open a student account with them - the highest number of providers doing so in recent years.
Katie Brain, Consumer Banking Expert at Defaqto, the UK’s most trusted source of financial product and market intelligence, said: “The main incentive for student accounts this year is cash. Six major banks offering cashbank to students is the most we have seen in sometime. 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.”
|
Provider |
Product |
Cashback or Monthly Reward |
Other Incentives |
|
HSBC |
Student Bank Account |
£100 cashback to open the account (5 transactions required within 30 days). |
1-year free subscription to Headspace |
|
NatWest |
Student Account |
£100 cashback to open the account online or via the app |
4 year tastecard offer |
|
Royal Bank of Scotland |
Student Account |
£100 cashback to open the account online or via the app |
4 year tastecard offer |
|
Bank of Scotland |
Student Account |
£100 cashback to open the account provided £500 deposited by 31st October 2023. Plus cashback available with selected retailers |
2% interest up to £5,000 |
|
Halifax |
Student Current Account |
£100 cashback to open the account provided £500 deposited by 31st October 2023. Plus cashback available with selected retailers |
2% interest up to £5,000 |
|
Lloyds Bank |
Student Account |
£100 cashback to open the account provided £500 deposited by 31st October 2023. Plus cashback available with selected retailers |
2% interest up to £5,000 |
|
Nationwide Building Society |
FlexStudent |
£100 cashback to open the account provided £500 deposited by 15th December 2023. |
None |
|
Santander |
123 Student Current Account |
Cashback available with selected retailers |
4 year 16 -25 Railcard for use in the UK |
|
Barclays |
Student Additions |
Blue Reward programme £5 reward for 2 direct debits per month, other rewards available for other products taken. (£5 monthly fee applies)* |
None |
|
TSB |
Student Account |
None |
5% interest up to £500 |
|
The Co-operative Bank |
Student Account |
None |
None |
|
Ulster Bank |
Student Account |
None |
None |
* £500 monthly deposit required
As well as £100 cashback to open the account, many are offering other rewards and incentives to its customers although there are less discount benefits being offered than last year, according to Defaqto.
Katie Brain added: “After the account is opened, we are seeing less discount benefits being offered than we saw last year but still a number of incentives for students who should look at the different offerings to see what suits them.
“Some students may benefit from the interest earned on the balance of the account. Lloyds Bank offers 2% interest up to £5,000 and TSB an interest rate of 5% 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.
“In addition, HSBC is also offering a 1 year free subscription to Headspace and Natwest a free four-year tastecard. For those students who may use the train to get home then Santander are offering a free four-year 16-25 railcard to use in the UK.
“Students should act quickly to take advantage of the cashback incentives offered as they are only available for a limited time, but choose wisely.”