uSwitch.com comments on the latest student current accounts on the market

Mike Naylor, personal finance expert at uSwitch.com, the independent online price comparison and switching service, comments on the latest student current accounts on the market:

"With thousands of students heading off to university this autumn, it is crucial that they start thinking about finding a student bank account that offers them the best value and not be lured in by freebies.

"Each year banks try and entice new students to open accounts by offering goodies, like, free cinema tickets and discounted CDs.

However, students who will need an overdraft to help pay for their time at university should look at the interest-free limits offered by accounts and not these 'free' gimmicks.

Halifax's account offers the best interest-free overdraft limit of up to £2,750 each year.

RBS offers an interest-free overdraft facility of up to £2,500 per year.

"Students lucky enough to have money in their account during their student years should choose an account with a good credit interest rate.

For example, Smile offers students a credit interest rate of 3%, followed by Halifax's 2%.

At the other end of the scale Lloyds TSB pays its students just 0.10%.

"Lloyds TSB has the most attractive 'free' gifts worth up to £299.

This includes up to £150 of cash if money is paid in three times and the account stays in credit for a year, as well as a free NUS card, and mobile phone insurance.

However, the price of this 'generosity' is a paltry 0.1 per cent on money in the account.

NatWest offers students a practical 'freebie' in the shape of a 5 year railcard worth ?100, but also pays just 0.1 per cent credit interest.".

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