Student spending: Deliveroo, brunch and gym memberships
A study by the bank revealed the shifting financial priorities of the current generation of university students. It found a fifth (20 per cent) don’t drink alcohol and more than half (56 per cent) have a gym membership.
Nine in 10 (91 per cent) of students buy fresh fruit, compared to 87 per cent who buy chips. More than two-fifths (44 per cent) actively look for discounted items to keep their spending in check.
Research from the bank shows that students are more likely to go out for brunch (68 per cent) than to eat pot noodles (65 per cent), while a quarter (25 per cent) visit a coffee shop at least once a week and more than four in 10 use Deliveroo (or another online delivery service) at least once a fortnight.
To finance their spending, one in four (40 per cent) students have a part-time job during term time and 45 per cent work during university holidays. However, more than a third (37 per cent) rely on money from parents or family, while 13 per cent have borrowed from a loan company, and 8 per cent have signed up for a credit card.
Hetal Parmar, head of banking and savings at Santander, said: “Our research shows today’s students are choosing to spend their money very differently to previous generations. Far from the stereotypical student staples of Pot Noodles and baked beans, students are instead choosing to spend on health and wellbeing. For many, starting university is a first step to financial independence – so careful money management, getting the right support from their bank and value from their bank account can be an important part of making the most of student life.”
Santander student account
The Santander 1|2|3 Student Current account is available to all students or school leavers taking up higher or degree-level apprenticeships. It comes with a free four-year 16-25 Railcard (worth £120) which gives students a third off standard rail fares.
Students also benefit from access to 1|2|3 World offers, such as 30 per cent off travel insurance, as well as up to 15 per cent cashback at major retailers.
The student account comes with a fee-free arranged overdraft of up to £1,500 in years one to three, up to £1,800 in year four, and up to £2,000 in a fifth year of study. In credit interest is paid at 3 per cent on balances between £300 and £2,000.
Shop around for a student account
Freshers should compare student accounts before making a decision about the right one for them.
Lloyds Bank is offering students a three-year Totum discount card (previously NUS Extra) worth £32. It also offers a fee-free overdraft of up to £1,500 in years one to three, which can be extended up to £2,000 in years four to six.
Lloyds’ “Everyday Offers” offer up to 15 per cent cashback at selected retailers including Morrisons, Costa, Nando’s, Just Eat, Subway and New Look.
HSBC is offering students £100 cash if they open a HSBC Student Account, as well as 12 months membership of British Cycling worth £24.
HSBC accountholders will have a guaranteed interest-free overdraft of £1,000 on account opening. They can then request a £2,000 overdraft in the second year of study, and £3,000 in their third year.
NatWest and the Royal Bank of Scotland offer the biggest overdraft for first year students, with customers able to borrow up to £2,000 fee-free. Students can also choose from a Tastecard, one-year membership of Amazon Prime, or a National Express Coachcard.