Best student accounts: The banks giving out £100 cash, £3,000 interest-free overdrafts and railcards

Daily Mail​

22-07-2025

In the coming weeks, hundreds of thousands of students will be heading off for their first year of university.
For many, managing their student loan will mark their first taste of financial independence.
This is big business for banks, as student joiners often stay loyal for many years.
They are also potential high earners, who in the future might take out credit cards, mortgages and investments.
So as the start of the academic year draws closer, they are once again battling it out to woo freshers and returning students into opening an account with them with a raft of new perks.
Lloyds is offering students £100 cashback, while Nationwide is handing out referral bonuses to students who get their friends to sign up and Santander is offering a free rail card for four years.
This is Money picks the best bank account options for students heading to university.
Battle of the banks: Student banking deals are ramping up as banks compete to sign up university-bound customers
Best overall student account
Nationwide FlexStudent
In an unprecedented move, NatWest is offering £85 in cash to lure in students, paid within ten working days. But our experts still believe Nationwide is the best option.
Britain's biggest building society has launched a cashback deal worth £100 - though students must pay in £500 before December 12, 2025 to qualify. Once they do, Nationwide will pay the £100 within 14 calendar days.
It is also offering £120 worth of Just Eat vouchers, spread over 12 months at £10 a month.
If students refer friends to open a FlexStudent account, they will earn up to £40 in Just Eat vouchers – £20 per friend referred.
It means students opening this account could get a boost worth £260 in their first few weeks of university.
Students can apply for an interest-free overdraft of up to £1,000 in the first year of university, £2,000 in the second year and £3,000 in their third year.
The account also offers fee-free spending and cash withdrawals abroad.
Rachel Springall, finance expert at Moneyfacts Compare says: 'This account is a great choice as it offers cost-saving incentives and has a decent interest-free overdraft.
'Not only this, but the Just Eat vouchers can be helpful for students finding their feet when it comes to meals, and the £100 cashback is a great upfront sweetener, too.'
Best student account for free cash
Lloyds Bank
Lloyds has launched a £100 cash bonus for university students who open its current account.
The banking giant is paying £100 upfront in cash to students who open its account between 1 August and 31 October.
Lloyds has upped its student deal, offering £100 and £90 worth of Deliveroo vouchers
On top of the £100 cash, students can also get £90 worth of Deliveroo vouchers spread over six months as £15 a month.
Rachel Springall says: 'Lloyds Bank's student account freebies have intensified compared to a year ago, as students can now get £100 from the start of August until the end of October.
'In addition, it is offering six months of Deliveroo vouchers, worth £90, subject to meeting a set number of eligible account transactions each month.'
Best student account for interest-free overdraft
NatWest
NatWest is once again offering one of the most generous interest-free overdrafts to students.
Students can apply for an overdraft of up to £2,000 in their first year of university.
In the first four months it is capped at £500, and from month five onward they can get up to £2,000 interest-free.
An interest-free overdraft of up to £3,250 is made available to students from their third year of study until year five.
In addition to the biggest overdraft, students can get a cash bung of £85 from NatWest - though this is less generous than its £100 cash deal on offer last year.
HSBC and Nationwide also offer interest-free arranged student overdrafts of up to £3,000 by year three.
Best student account for other freebies
Santander
Santander has opted to offer a free 16-25 railcard to students who sign up to its Edge student current account.
Normally, a railcard costs £30 a year or £70 for three years. Santander said the average 16-25 Railcard user could save up to £115 a year with the card.
Students must pay at least £500 into their account every four months to hold the Edge student account.
It also comes with Santander Boosts, the bank's rewards programme, which gives customers cashback, vouchers and prize draws.
Rachel Springall said: 'Those students who will travel far from home to study might find the free Railcard from Santander a great choice, and could save them a decent sum over the years. Customers can earn cashback through Santander Boosts.'