Lloyds Bank launches £100 student account cashback and in-credit interest
As the new university season draws closer, Lloyds Bank has launched a student current account offering £100 cash, in-credit interest and an interest-free overdraft.
To qualify for the cashback, students need to deposit £500 by 31 October 2023. The cashback will then be paid by 30 November.
As part of the 2023 student account offering, Lloyds will pay 2% AER interest on balances up to and including £5,000.
There’s also an interest-free tiered arranged overdraft of up to £1,500 in years one to three of study which can be extended to up to £2,000 in years four to six for longer courses. However, students can access £500 in the first six months from account opening, £1,000 in months seven to nine and £1,500 from month 10 onwards).
It can be opened online or in branch and to get the deal, applicants must have been a resident in the UK for the past three years and be aged 17 (18+ for the overdraft).
Customers also need to be studying a full-time course that lasts for at least two years, or a one-year access course that leads to a degree.
Either way, students will need to provide their four-digit UCAS status code or a confirmation letter confirming their place from their university or college if they haven’t applied via UCAS.
For those opening a Bank of Scotland student account (part of Lloyds Banking Group), it offers £100 but no in-credit interest, while the interest-free overdraft offering is the same.
‘Giving students a helping hand’
Philip Robinson, current account director at Lloyds Bank, said: “This year, we’re giving students a helping hand, with the potential to add £100 to their first-term funds.
“Hopefully this bonus will come in handy for all those initial study expenses – plus a drink with the new pals.”
Lloyds isn’t the only bank to offer freshers and returning students a welcoming deal ahead of the new term.
How does Lloyds’ student account compare?
NatWest and RBS provide a similar deal to Lloyds, but their £100 introductory offer is paid within 10 working days of opening the account. Their overdraft is also more generous from the outset as students can apply for up to £2,000. However, only £500 can be accessed in the first term.
The £100 cashback is clearly a theme for this year’s student account deals as HSBC and Nationwide are also both offering this incentive. Students can also apply for a £1,000 interest-free overdraft in the opening year, which goes up to £2,000 and £3,000 in the second and third year, respectively.
Meanwhile, Barclays and TSB aren’t offering any sign up freebies, but do offer 0% overdraft options at lower amounts offered by competitor banks. Barclays has a maximum overdraft facility of £1,000 in the first year while TSB’s is £1,500 from month 10.