Banking & Saving - NatWest Student Account voted No.1

As the beginning of a new university year draws closer, students are left with an important decision that could determine the bank that wins their custom for life.

Banks are always keen to attract students by offering a number of features, including free gifts and student overdrafts, but it is important that students make the right choice when considering their options.

A recent survey has revealed that NatWest was voted the number one bank for student accounts by 'Your Money' for the fifth year running.

The NatWest student account offers account holders a number of benefits including a free 16-25 Railcard valid for five years worth £130, allowing students to cut their travelling costs, as well as several discounts at high street stores and a low interest rate of just 0.10%.

Another important feature that most students will look for in a student account is the interest free overdraft facility. NatWest offers up to £1,250 for first year students then a possible increase to £1,600 by the third year.

Phil Cook, head of NatWest Student and Graduate Banking, says the bank plans to, "continue delivering financial advantages, such as the exceptional interest-free overdraft facility and practical benefits such as the Railcard".

"Never has it been more important to manage your money with a bank that really understands students’ core needs," he said.

He added: "NatWest also offers genuine student expertise allowing us to give each of our student customers the additional support they may need at this new and exciting time in their lives."

But it is important that students choose wisely in order to get the most from their bank accounts. For example, the NatWest student account would not be as useful to someone that would never use the free Railcard, so they would do better to opt for another feature such as an increase in 0% overdraft.

The RBS student account provides students with an overdraft facility for up to £2,750, but conditions apply when extending to this limit.

Michelle Slade, spokesperson for Moneyfacts.co.uk, highlighted the importance of finding an account with an interest free overdraft: "As most students spend their university life living in their overdraft, it is worth finding an account that offers a good level interest free.

"Inevitably, many will require more than this limit, so it is also important to check the authorised overdraft that will be payable on any additional borrowing."

Written by Sam Gooch