Best student bank account? NatWest offers £85 cash paid within 10 days

NatWest has launched a cash bonus for university students who open its current account.

The banking giant will pay £85 cash upfront if they open a student account with the deal available to new and existing customers.

The cash is promised within 10 days of students opening a student bank account.

Alongside the £85 cash, students can apply for an overdraft of up to £2,000 in their first year of university, with an interest-free overdraft of up to £3,250 made available to students from their third year of study.

There is also a Tastecard on offer which gives discounts at hundreds of restaurants including Black Sheep Coffee, Domino's and Krispy Kreme.

They can also get a Coffee Club membership which offers 25 per cent off barista drinks.

NatWest has a range of tools in its banking app to help students manage their money, including a free expense tracker feature in the mobile app called Spending.

While the 'Split Bill' and 'PayMe' features can be used to request money from friends and family.

To get the deal, students must be studying a full-time undergraduate course lasting at least two years or a nursing course lasting a year or more.

They must not have received a NatWest student incentive since July 2021 to be eligible for the deal.

Students will need to provide a 16-digit UCAS code at the point of applying to be eligible to open the account.

Customers will need to be 17 or over to open the current account and they must have lived in the UK for at least three years.

It is not uncommon for student bank accounts to offer perks like cash incentives or free railcards, but the NatWest deal looks particularly attractive for students heading off to university says Andrew Hagger, founder of personal finance website MoneyComms.

He says: 'The NatWest deal is good because as well as the cash freebie it also offers a high interest free overdraft limit of up to £3,250 - an interest free overdraft can be a godsend for cash strapped students.'

Meanwhile Nationwide is also offering a 'very generous package,' as banks start to launch their student deals ahead of the academic year Mr Hagger says.

Nationwide will offer students who open its FlexStudent current account £100 in cashback and £120 in Just Eat vouchers over 12 months to students in their first year of university.

It comes with an interest-free and fee-free arranged overdraft of up to £1,000 in the first year, £2,000 in the second and £3,000 by the third year as well as fee-free spending and cash withdrawals abroad.

If Nationwide customers with the student account refer a friend they can earn £20 per successful referral. They can refer up to two friends so could earn £40 from referring friends.