The Best UK Student Accounts 2008-2009

Finding the best student accounts available does not have to be difficult. Instead, using readily available information can quickly and easily show you what is available for you and what may also be of advantage. The terms with which you want to become familiar are the credit interest rate, the credit card limit, and also the interest free over draft fee on a per annum basis. There are also the overdraft fees for authorised and unauthorised overdrafts; terms which you must know even if you do not intend to avail yourself of these financial products.

For this comparison we will look at 17 different accounts available in th UK in 2008-2009:

1. The Abbey Student Account Package offers a 3.93% credit interest rate and a £350 credit card limit. In addition, you may enjoy a 9.9% authorised overdraft and a 28.7% unauthorised fee. If you keep the account and transfer it into a graduate account after your time at university, there will be a £50 cash incentive.

2. The Abbey International Student Account Package offers a 5.84% credit interest rate and the same credit card limit, but there are not overdrafts offered.

3. Student Accounts with the Bank of Ireland have a low 0.50% credit interest rate and a lower £250 credit card limit. The authorised overdraft is 0% while the unauthorised tops at 12.68%. If you transfer your account into a graduate account within two years of graduating from university, you are treated to a discount card for travel in Northern Ireland and also various discounts.

4. Barclays Student Account Package starts off with a 0.10% credit interest rate and a rather high £600 credit card limit. The authorised overdraft is 8.9% while there is no unauthorised one. You may turn it into a graduate account within two years of graduation. Enjoy the incentive of six free cinema tickets.

5. The Clydesdale Student Bank Account Package offers 2.90% credit interest and a £500 credit card limit. The authorised overdraft stands at 7.49% wile the unauthorised overdraft will cost a whopping 29.99%. Keep in mind that you have only six months after graduation to transfer your account into a graduate account.

6. A bit different from the rest is the Co-operative Bank student account which offers no credit interest rate and has a negotiable credit card limit. The authorised overdraft cost runs at 9.9% and the unauthorised stands at 15.9%. There is a 12 months cap to transfer your student account into a graduate account after your studies at university are finished.

7. The First Trust Bank offers no credit interest and a negotiable credit card limit, while also offering 0.0% for the authorised overdraft. The unauthorised overdraft runs at 9.0% and within two years of graduation you may transfer your student account to a graduate account.

8. A student account at HSBC begins with a 5.84% credit interest rate and a £500 credit card limit. Authorised overdrafts incur 3.0% charges while there is no unauthorised package available. You may transfer your student account to a graduate account.

9. The international version of the HSBC student account offers a 0.10% credit interest rate but no credit card of overdrafts. There are discounts available but the account may not be transferred into a graduate account.

10. A Halifax student account package carries a 2.00% credit interest rate and offers a negotiable credit card limit. Authorised overdrafts run 7.2% while unauthorised overdrafts cost 24.2%. Within 12 months of graduation you may transfer you student account into a graduate account. Incentives offered to you are discounts on AA breakdown and Cardcare cover.
11. Students banking with Lloyds TSB find a 0.10% credit interest rate, £500 credit card limit, 8.2% authorised overdraft cost, and an identical unauthorised overdraft expense. Transfer from student account to graduate account must occur by 30 September upon university graduation. A generous incentive package includes £20 just for opening the account and up to £80 for referring up to four friends to also open accounts.

12. The Islamic Lloyds TSB student account offers no services other than a year one £1,500 overdraft. Eligible for graduate account transfer, there is a £25 incentive and an additional £50 credit if there are no overdrafts posted to the account and three credits have been paid.

13. NatWest offers students accounts at 0.10% credit interest with a £500 credit card limit, and an unauthorised overdraft cost of 17.84%. You may transfer your student account into a graduate account. A five year rail card worth £120 makes for a most useful incentive.

14. The Royal Bank of Scotland student account package starts out with a 2.00% credit interest and a £500 credit card limit. There is an unauthorised overdraft at a staggering 29.84% and it is wise not to make use of it. Transfer the account within 12 months of graduation into a graduate account. To sweeten the deal, the bank offers a free webcam complete with online applications as a primary incentive. There are also shopping and entertainment discounts offered.

15. The Smile student account package has a 2.25% credit interest and a negotiable credit card limit. Authorised overdrafts cost 9.9% while unauthorised overdrafts run 15.9%. You may transfer the account to a graduate account within four years of opening it.

16. Ulster bank offers a 0.10% credit interest and negotiable credit card limit and authorised overdraft cost. The unauthorised overdraft fee is currently at 12.7%. Transfer your account to a graduate account within two years of graduating from university.

17. With a Yorkshire Bank student account package, you enjoy a 2.90% credit interest and a £500 credit card limit. Authorised overdrafts cost 7.49% while unauthorised overdrafts run up to 29.99%. You have up to six months after graduation to transfer the student account to a graduate account.