It’s a straightforward decision for students across the nation when organizing their finances before university – get a
student current account
.
The offers are hard to refuse, as numerous banks provide excellent incentives for students entering further education. They feature complimentary four-year rail passes along with interest-free overdrafts of up to £3,250.
These offers may diminish somewhat once students graduate from university.
Sarah Coles, who leads personal finance at Hargreaves Lansdown, stated: “During your studies, banks present you with exceptional offers—starting with a complimentary overdraft. Yet after graduation, they typically shift you towards a graduate account, which tends to be far less advantageous.”
It can be disheartening to witness free offers and substantial interest-free overdrafts diminishing.
away after graduation
However, this doesn’t imply that the gateway to fantastic deals must remain forever shut.
Therefore, as numerous college students are now concluding their last examinations,
The i Paper
runs through some of the best bank account options on the table for those who have recently left university or are about to do so.
Switch incentives
You aren’t required to maintain your account with the same service provider once you graduate from university.
Many financial institutions provide rewards to attract clients who want to transfer their existing bank accounts to theirs.
Rachel Springall, a financial specialist from Moneyfactscompare.co.uk, stated, “Banks often provide incentives like free money to attract customers to change their current account affiliations, and several institutions are now attempting to draw in fresh clients.”
Several banks provide cash incentives if you transfer your account to them.
Currently, First Direct will pay you £175 to switch to their service, whereas NatWest offers £150.
Cashback offers
Various banks will provide you with ongoing cashback rewards for your expenditures over time.
Ms. Springall mentioned that customers might discover advantageous offers which could yield greater benefits over time compared to switching bonuses for some individuals.
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“Customers might still come across cashback offers when making purchases or paying bills, and savers could potentially receive a good returns from high-interest current accounts,” she explained.
Regarding cashback benefits, the Barclays Current Account qualifies for their Blue Rewards acara, involving a monthly fee of £5 that encompasses a complimentary Apple TV+ subscription along with potential cashback savings of up to 15 percent at specific retail partners.
A number of other banks provide cashback with their current accounts.
For instance, the NatWest Reward account has a monthly fee of £2; however, you receive £5 in cashback every month provided you deposit at least £1,250, make two or more Direct Debit payments over £2, and use their mobile banking application once a month. This means your overall benefit is an extra £3 per month, totaling £36 annually.
Keep in mind that numerous services come with a regular monthly fee, and these can vary from bank to bank. Therefore, it’s advisable to shop around and find out which option provides the most favorable conditions for your needs.
Savings interest
Certain current accounts also provide savings interest — which can sometimes outperform regular savings accounts — up to specific caps.
Tom Allingham, a student finance specialist from Save the Student, advised graduates to focus on savings: “It’s important to remember that living expenses in 2025 can be quite high, so setting aside funds for unforeseen circumstances is wise. Of course, feel free to indulge occasionally, but make sure you still have some reserves.”
A method to enhance your savings is to direct your paycheck directly into a high-yield checking account.
The Nationwide FlexDirect account provides an annual interest rate of 5 percent for the first year, provided that at least £1,000 is deposited into it monthly.
It mirrors some of the best saving accounts available; however, it caps earnings at £1,500 within the current account, yielding a maximum of £75 in interest.
Credit builder cards
Although it isn’t exactly a bank account, Ms. Springall recommends that individuals in their twenties—who might consider taking out a mortgage later—could gain advantages by obtaining a credit builder card to enhance their credit score.
If you apply for loans or a mortgage in the future, lenders might evaluate your credit history based on your credit score.
“You may have to apply for a credit repair card to take out a small loan, repay it promptly, and show your ability to handle debt,”Ms Springall explained.
“It might appear as a peculiar idea, however, creditors tend to view borrowers more favorably when they have demonstrated their ability to repay loans, unlike those who have never taken out credit,” Springall noted.
Although it’s wise to begin establishing your credit score, specialists similarly advise individuals to honestly evaluate their capability to consistently make monthly payments.
Ms. Coles stated, “Resist the urge to rely on a credit card for financial stability, despite the availability of 0 percent offers. Such debts tend to accumulate and could lead to significant trouble down the line.”
“Nevertheless, if you’re confident that you can use a credit card responsibly and manage to pay it off entirely every month, it can be an effective method for establishing your credit history,” she went on.
Reward cards
Cash-back reward credit cards, offering clients an opportunity to accumulate points for various rewards such as cash back, gift vouchers, or air travel tickets, may serve as a beneficial choice for individuals aiming to maximize their expenditure benefits.
Ms. Coles stated, “Should you be entirely reliable with your credit card usage, choosing a rewards card could allow you to earn cash back or points based on what you spend.”
Moneyfacts found that American Express offers two good options at the moment, with their Cashback and Cashback Everyday cards.
Ms. Coles cautioned, “You must be completely sure that you’ll consistently manage to pay in full and on schedule. Otherwise, you could swiftly end up losing more than what you initially gained from the cashback.”
A lot of supermarkets provide loyalty cards that enable you to accumulate points and receive discounts when purchasing items from their stores.
According to Moneybox, both ASDA, John Lewis, and M&S provide cards without any monthly fees. Therefore, if shopping at one of these places is your preference for weekly groceries, these options might present attractive rewards.
Just like with all the alternatives mentioned here, it’s crucial to review the terms and conditions along with any related fees for every account you consider, particularly when it comes to credit cards.
This approach guarantees that you can repay your overdraft every month and helps you identify the most suitable option based on your situation.