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The Independent
11-07-2025
- Business
- The Independent
The best bank accounts for new students
With results day fast approaching, some students may be getting ready to open their very first bank account. Although an exciting time, it may also be the first time many young people are having to focus on their finances. This may seem daunting for some with an overwhelming amount of information, data and numbers now readily available. To offer some guidance and advice, student money expert at Save The Student, Tom Allingham shares his top tips about student bank accounts and the main do's and don'ts. What are the best accounts for new students? 'It's difficult at this stage to say definitively what the best bank accounts are this year, as not every single bank has published their details yet,' Allingham says. 'However NatWest, RBS, Santander and Nationwide have all published their details for the coming year and all of them are very strong. 'NatWest and RBS are looking particularly strong because they are both offering interest-free overdrafts of up to £3,250. On top of that, they are giving away £85 cash and a four year tastecard. 'What I will say though is, no matter what the other offers are that come in, there might be some that end up offering more or offering less.' Allingham also mentions the importance of looking out for a zero percent overdraft – this allows you to borrow up to a specified limit without paying interest on the amount used. 'For the vast majority of students, this will end up being way more important long term that any freebies that are being given away short term,' he explains. How can students find the right account for them? 'All banks have their own websites with their own information on them,' Allingham says. 'We at Save The Student also have our own guide which breaks down every single bank's offer this year – including the overdraft and freebies they are offering. 'I would also advise to take some time to work out a budget first, and from there you can work out roughly how big an overdraft you may need. If you're in the privileged position of maybe not needing the biggest overdraft, there are multiple banks that may suit your needs and you can start to look at things like the freebies.' What are misconceptions about student accounts? 'One misconception when it comes to student accounts is focusing on things like freebies,' Allingham says. 'We definitely recommend students getting things such as rail cards, however they do often go on sale throughout the year and you can usually get them then for much cheaper. 'For example, the bank might say we're giving you a four -year rail card that is worth £100, but in reality it goes on sale multiple times throughout the year for less. 'Another misconception is to choose a bank because the branch is near campus, on the campus or because their parents use it and recommended it. I'm not saying those things aren't important – there is some importance on them but again, it is the zero percent overdraft that you should be looking at.' What are the main benefits of having an overdraft as a student? 'The big benefit with the student bank account is if you stay within your arranged overdraft amount, you won't be charged interest for using any extra amount on your account – this differs to regular overdrafts on a normal bank account,' Allingham says. 'The added benefit on top of that, is that with every student bank account, once you leave university, it becomes a graduate bank account and you will get at least a year to build your way out of it without having to pay any interest on it. 'Maintenance loans will also fall short when it comes to living costs for students at university, and whilst they may still have parental contributions or a part-time job, that's not to say at the end of the term when they are still a couple of weeks away from student loan payments coming in, that they might not need to dip into their interest-free overdraft a little bit just to make ends meet.' How should you use your student account once it's set up? 'Firstly, to have your account open, you will need to have been accepted to university as your bank will likely ask for your acceptance letter,' Allingham says. 'However in terms of how to manage your money and use the account, I would say to get your student loan paid into the student one. 'When it comes to day-to-day money management, you're potentially better off opening a second bank account for that. Options for those accounts are the likes of Monzo where you can transfer over a set amount of money weekly or monthly and use that for your day-to-day spending.'
Daily Mail
03-07-2025
- Business
- Daily Mail
Best student bank account? NatWest offers £85 cash paid within 10 days
NatWest has launched a cash bonus for university students who open its current account. The banking giant will pay £85 cash upfront if they open a student account with the deal available to new and existing customers. The cash is promised within 10 days of students opening a student bank account. Alongside the £85 cash, students can apply for an overdraft of up to £2,000 in their first year of university, with an interest-free overdraft of up to £3,250 made available to students from their third year of study. There is also a Tastecard on offer which gives discounts at hundreds of restaurants including Black Sheep Coffee, Domino's and Krispy Kreme. They can also get a Coffee Club membership which offers 25 per cent off barista drinks. NatWest has a range of tools in its banking app to help students manage their money, including a free expense tracker feature in the mobile app called Spending. While the 'Split Bill' and 'PayMe' features can be used to request money from friends and family. To get the deal, students must be studying a full-time undergraduate course lasting at least two years or a nursing course lasting a year or more. They must not have received a NatWest student incentive since July 2021 to be eligible for the deal. Students will need to provide a 16-digit UCAS code at the point of applying to be eligible to open the account. Customers will need to be 17 or over to open the current account and they must have lived in the UK for at least three years. It is not uncommon for student bank accounts to offer perks like cash incentives or free railcards, but the NatWest deal looks particularly attractive for students heading off to university says Andrew Hagger, founder of personal finance website MoneyComms. He says: 'The NatWest deal is good because as well as the cash freebie it also offers a high interest free overdraft limit of up to £3,250 - an interest free overdraft can be a godsend for cash strapped students.' Meanwhile Nationwide is also offering a 'very generous package,' as banks start to launch their student deals ahead of the academic year Mr Hagger says. Nationwide will offer students who open its FlexStudent current account £100 in cashback and £120 in Just Eat vouchers over 12 months to students in their first year of university. It comes with an interest-free and fee-free arranged overdraft of up to £1,000 in the first year, £2,000 in the second and £3,000 by the third year as well as fee-free spending and cash withdrawals abroad. If Nationwide customers with the student account refer a friend they can earn £20 per successful referral. They can refer up to two friends so could earn £40 from referring friends.
Mail & Guardian
27-06-2025
- Business
- Mail & Guardian
Standard Bank launches Southern Africa's first Shari'ah-compliant overdraft
Africa's biggest lender, Standard Bank, has launched the first-ever Shari'ah-compliant overdraft facility in Southern Africa, marking a transformative milestone for Islamic Finance on the continent. Designed to empower business owners with more Shari'ah-compliant solutions, the product adds to a long list of Standard Bank's innovative solutions to meet the unique needs of Africa's growing demand for Islamic Finance. Structured under the Shari'ah principle of Wakaalah, the Shari'ah Overdraft facility is a non-interest based alternative that provides businesses with instant access to short-term funding. Linked to the Shari'ah Business Current Account, the new product will allow clients to drawdown up to a pre-approved limit. 'This is not just a product launch, it's a response to a critical gap in Africa's Islamic Finance ecosystem,' said Ameen Hassen, Head of Shari'ah Banking at Standard Bank. 'For too long, businesses that required Shari'ah-compliant financing options lacked fluidity of a working capital solution that an overdraft brings. This overdraft facility empowers entrepreneurs to manage cash flow fluctuations without compromising their values and need for Shari'ah compliance.' With Sub-Saharan Africa home to 18% of the global Muslim population but accounting for just 1% of worldwide Islamic Finance assets, Standard Bank's innovation arrives as the region seeks scalable, Shari'ah-compliant solutions. The overdraft facility will directly address working capital challenges faced by businesses. Key benefits of the new product include: Competitive market related pricing. Direct linkage to the Shari'ah Business Current Account for streamlined operations. Certified compliance: The facility is certified by Standard Bank's Shari'ah Advisory Committee. Not only for Muslims While Shari'ah Banking adheres to Islamic principles like Wakaalah bi al-Istithmar (agency-based investment), and the prohibition of interest (riba), Hassen said the bank's offering transcends religious boundaries, with approximately 35% of Standard Bank's South African Shari'ah clients identifying as non-Muslim. 'This isn't just for Muslims, it's for anyone seeking transparent, non-interest, asset-based or backed financial solutions,' said Hassen. The launch builds on Standard Bank's legacy of Islamic Finance innovation, including the world's first Shari'ah-compliant Diners Club product and South Africa's inaugural Shari'ah tax-efficient endowment. 'Africa's economic future hinges on inclusive, innovative finance,' said Hassen. 'With this product, we're not just serving clients, we're innovating, industrialising and advancing a system of finance rooted in tradition and shared prosperity.' To leverage this Shari'ah-compliant liquidity facility, businesses and individuals can contact their Standard Bank Relationship Manager or email
The Sun
18-06-2025
- Business
- The Sun
Lloyds, Halifax and Bank of Scotland to make BIG change to account fees in boost for millions – are you affected?
LLOYDS, Halifax and Bank of Scotland are making a big change to account fees in a matter of days. Millions of Lloyds Banking Group customers will see their overdraft costs fall, The Sun can reveal. 1 An overdraft allows you to borrow money through your bank account when your balance drops below zero, up to an agreed limit. Lloyds, Halifax, and Bank of Scotland are now reducing overdraft rates for millions of new and existing customers. For new customers, all overdrafts will come with a 29.9% representative rate. At the same time, millions of existing customers currently paying 39.9% or 49.9% on their overdrafts will have their rates reduced to 29.9%. This comes just months after the banking giant, which also owns Halifax and Bank of Scotland, revamped its overdraft interest rates. In January, Lloyds introduced four overdraft tiers - 19.9%, 29.9%, 39.9% and 49.9%. Customers were given a rate based on their credit history - those with good credit got lower rates, while those with poor credit got higher ones. As a rule, new customers signing up for a Lloyds Bank overdraft used to be offered a 39.9% representative rate. These new rate changes, which will be coming in over the next few days, could save borrowers hundreds of pounds in interest each year. For example, if your interest rate dropped from 49.9% to 29.9%, the cost of borrowing £1,000 over 12 months would fall by £299. CARD REFUNDS: Section 75 versus Chargeback Meanwhile, if your interest rate falls from 39.9% to 29.9%, the cost of borrowing the same amount over 12 months would fall by £100. A Lloyds Bank spokesperson told The Sun: "We know many customers find it helpful to have an overdraft there for life's unexpected costs and, to make that as affordable for our customers as possible, we're lowering the interest rate most customers typically pay when they use an overdraft. "This means the cost of using an overdraft will become cheaper for many, with Lloyds, Halifax and Bank of Scotland now offering one of the lowest representative overdraft rates on the market." Lloyds said it will contact affected customers in the coming days to explain the changes. Customers whose interest rates are decreasing will receive seven days' notice. Think before you borrow BORROWING sounds like a simple way to help pay bills – but beware falling into debt you cannot pay back. It's always vital to ask yourself if you actually need to borrow before committing to a new credit card, personal loan or overdraft. If you cannot afford to pay off debt you already have, you should avoid at all costs taking on any more. What are the alternatives to overdrafts? Depending on individual circumstances, some borrowers may find it more cost-effective to use alternatives to an overdraft, such as a credit card with a 0% interest period. These cards, called balance transfer cards, let you move existing debts to the new card and avoid paying interest on them for a certain period. The leading card on the market right now is from NatWest, which offers an impressive 34-month 0% balance transfer deal, though it comes with a 3.49% transfer fee. However, applicants should note that this deal isn't guaranteed for everyone. Tesco Bank is close behind with a 33-month 0% interest offer and a slightly lower transfer fee of 3.19%. Some people may also have savings they could turn to, rather than help clear their debts. Ideally, you will have built up an emergency fund which you can dip into — but sometimes that just isn't possible. Before you borrow cash, do your research to find out the cheapest option for you. And remember to speak to your bank as lenders must help if you're in financial difficulty. If you're looking for a more affordable way to borrow, a loan from a credit union is worth considering. Credit unions are a much cheaper alternative to payday loans, and some can even provide funds on the same day. Their interest rates are significantly lower than those of credit cards or overdrafts, ranging from 12.7% APR (1% per month) to a maximum capped rate of 42.6% APR (3.5% per month). How to get free debt help There are several groups which can help you with your problem debts for free. Citizens Advice - 0800 144 8848 (England) / 0800 702 2020 (Wales) StepChange - 0800138 1111 National Debtline - 0808 808 4000 Debt Advice Foundation - 0800 043 4050 You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting or Speak to one of these organisations - don't be tempted to use a claims management firm. They say they can write off lots of your debt in return for a large upfront fee. But there are other options where you don't need to pay.
Yahoo
26-05-2025
- Business
- Yahoo
Ramit Sethi: 4 Ways Your Bank Is Hurting Your Wallet
You might want to think twice the next time you leave money in your bank account. Learn More: Check Out: Ramit Sethi, entrepreneur and bestselling author of 'I Will Teach You to Be Rich,' explains four ways that your bank is ripping you off and what you can do to protect yourself. Banks may introduce you to a high 4% interest savings to lure you in, Sethi said, but you need to read the fine print. That rate is often capped and drops to their normal rate after a few months, while your bank is still lending out that money at high interest rates. Consider This: Sethi reminds customers that banks make billions of dollars but still charge you a monthly maintenance fee for the privilege of keeping your money with them. You can face thousands of dollars of hidden bank fees in a year without even noticing. Read Next: Sethi calls large overdraft fees 'one of the biggest scams in banking.' Banks silently approve your overdraft and then silently charge you say, a $35 overdraft fee and so forth. One overdraft fee can wipe out your entire interest for the entire year. In 2023, banks made almost $6 billion from overdraft fees, said Sethi, preying on people with low-incomes, living paycheck by paycheck, not checking their account balances or assuming banks protect them. Banks don't treat everyone equally poorly, said Sethi. Black and Latino borrowers are charged higher mortgage rates even with the same credit profile as white or Asian borrowers. Furthermore, minority-owned businesses are more likely to be denied loans. Sethi says when you control for credit score, income and financial history, that bias does not go away. If you get hit with a fee, call your bank and ask for a waive. Banks know that the vast majority of people don't call and raise the concern, Sethi says, and as complimentary courtesy they will deal with you. Think of big banks as a bus station: 'Your job is to get your money in there and then get it the hell out,' said Sethi. 'The less you leave sitting there, the better.' Instead, keep your emergency savings in a high-yield online bank. For your investments, invest in a target date fund or index funds (low cost, long-term investments). Sethi says switching to a better bank is the single biggest move that you can make. Don't be 'nostalgic' over your old history with your bank, he said. More From GOBankingRates How Far $750K Plus Social Security Goes in Retirement in Every US Region Sources YouTube, 'The Bank Fees Costing You Thousands (And How to Escape).' This article originally appeared on Ramit Sethi: 4 Ways Your Bank Is Hurting Your Wallet
