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Natwest has launched its 2007 student banking package.

The high street bank is offering students various incentives to use their services.

Students will be given a free five year Young Persons Railcard, worth £100. The card gives students a one third discount on most train journeys in the UK and figures indicate it saves the average holder £114 a year.

Natwest is also offering students a competitive negotiable overdraft facility, meaning that agreed borrowing above set yearly limits is also interest free.

Mark Worthington, head of student and graduate banking at Natwest, said: "When choosing a student account, you should look for a bank that really understands the situation students are in, offers flexibility and has a good interest free overdraft facility.

"The NatWest 2007 student package has evolved in response to what students have told us really matters to them."

Natwest is also offering all students who apply online before October 31st a free Microsoft Windows Live Messenger webcam and microphone so that they can keep in touch with friends and family while at university.

Competition between banks in the UK has never been higher - and all the main high street banks are keen to get students to sign up with them.

Experts suggest students do their research and shop around to see which bank will provide them with the best deal.

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