Credit Card Blog

For years banks having been offering students all manner of incentives to sign up for a bank account with them. The benefit is huge - the chances of people actually moving bank account in later life are relatviely small, so signing students up is big business.

From cash incentives to Ipods and other electrical goods banks have always looked to provide good deals for students. This year however, with the economic situation, this is what the following banks are offering for student accounts:

1. Halifax Bank - 25% discount on AA membership
2. HSBC - 2 years free travel insurance
3. Barclays Bank - Free cinema tickets
4. Lloyds TSB - free music downloads
5. Natwest Bank - 5 year national railcard

It’s not all bad news however, as it has been reported that interest free overdrafts will be increased by the banks. Students are wise to what they are being offered, and this move could well be due to the fact that interest frree money is proving more valuable than a one-off gift or small incentive.  At E4S we’d encourage you to look not just at the short term but see what kind of overall package the abks are offering you before you decide to open a student bank account. The reported breakdown of interest free overdrafts is as follows:

1. Halifax - £3,000 for five years’ study (and for one year post-graduation)
2. HSBC - offer up to £1,000 in the first year, £1,250 in the second, £1,500 in the third, £1,750 in the fourth and £2,000 in the fifth year, depending on the course studied
3. Barclays - offer up to £1,000 in the first year, £1,250 in the second, £1,500 in the third, £1,750 in the fourth and £2,000 in the fifth year, depending on the course studied
4. Natwest - between £1,250 and £2,000
5. Lloyds TSB - between £1,500 and £2,000

Te comparison site money net have however said that “‘You may find you need to be approved by the bank to get the advertised overdraft - or you may be offered slightly less.’”

Check what they offer carefully - some have small print, but saying that, these interest free overdrafts are really good!

This entry was posted on Monday, August 4th, 2008 at 5:56 pm and is filed under Uncategorized.
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