Banks offer students interest-free overdrafts of up to £3,000

Aug 10, 2015 by

Gone are the days of free electronic gadgets – this year banks are trying to lure students with valuable interest-free borrowing

Students who get the A-level results they are after on Thursday will be able to choose from a raft of bank accounts that offer interest-free overdrafts of up to £3,000 to help fund their studies.

All the major high street banks have released their student offerings for the upcoming academic year ahead of the scramble for university places.

However, gone are the days when banks would effectively bribe students for their business with electronic gadgets. Back in 2001, Abbey National (now Santander) was seducing students with a Sony CD player and £40 cash. The following year Natwest was offering a “student starter kit” of a kettle, toaster and radio alarm clock, and in 2005 HSBC garnered a wave of publicity after throwing in a free MP3 player with its account.

This year, the best freebies are the four-year young person’s railcard from Santander, the equivalent National Express card from NatWest/RBS and a £60 Amazon gift voucher from HSBC.

David Black, director of DJB Research, says there is little point in looking at freebies and students should focus on the interest-free overdraft.

Source: Banks offer students interest-free overdrafts of up to £3,000 | Money | The Guardian

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