Picking the right student bank account can make a big difference to your cash flow. But which banks do students rate, and why? We reveal the rankings that count.
More than 1,000 of you answered our Student Banking Survey 2017 to tell us what you think of your bank, why you chose them and how overdrawn you really are – cheers!
Check out our quick fire roundup of the report in all its glory below.
Choosing the right bank account
Ever since we wrote our famous student bank account guide we’ve tried to delve down into why students really choose the bank they’re with.
Perhaps alarmingly, the majority of students (44%) pick an account with the bank they’re already with. Why is that worrying? Well, because 1000s of you are potentially missing out on a better deal because of loyalty. Or laziness. It’s vital to remember that banks aren’t loyal to you, so why should you be to them?
One positive is that this number has dropped from last year’s 48% so perhaps we’re getting through to you ?
We also found an almost even split between choosing an account for its 0% overdraft (which lets you borrow emergency cash for free) and because friends and family banked there. And, contrary to the perception that students are always glued to their gadgets, almost 1 in 5 say they pick your bank because of physical location.
Perhaps it’s no surprise that close to a third of students are swayed by freebies. Especially with what’s on offer this year.
36% of you also told us you don’t have a student account at all, preferring to rely on bog-standard banking instead. The main reason for this is that some current accounts offer much better in credit interest if you’re never in need of that juicy overdraft.
Switching accounts is not difficult. Due to government legislation the banks will now transfer over any direct debits automatically as well as handle the switch with each other, so the effort for you is next to none!
Despite this only 16% of you are looking to long off your current bank and move to a new one. Perhaps this might be because you already have the best bank for your needs but we had hoped to see the number a little higher this year (in fact it’s 2% lower than 2016).
So this is the info you’re really after. How does your bank rank in comparison to the rest of the bunch?
In somewhat of a shock result it turns out that students look kindly on their current bank with the average score across the board being 4.2 out of 5.
Santander are top of the pile again since taking the top spot in 2016. Nationwide and Halifax also retained positions 2 and 3 respectively. HSBC were this year’s biggest movers, dropping from 4th to 9th.
Not happy with your bank? Our tips on complaining the right way can help you sort it.
It’s not much of a surprise that Santander is the most popular (seeing as it’s the best rated).
Nationwide have increased their student account users by 2% on our results last year with many of the other accounts keeping a similar share of the market.
Bet you didn’t expect to see that such a huge proportion of students are not overdrawn. Especially with 78% saying they struggle with money.
Overdrafts are pretty much ingrained into student life which is why we have an all singing all dancing guide to student overdrafts.
What do you think of your bank? Let us know in the comments.
Need extra info? You’ll find everything you need to know about managing your money at university in our free eBook – download it right here.