University students who have finished their first year may be able to switch bank accounts and gain new perks. Many student account incentives, such as cash payments or vouchers, are often one-off or last only a year.
Some student account incentives are worth more than £200. Santander and NatWest have confirmed that their student account perks are available to those who switch later in their degree. Lloyds and Bank of Scotland's terms also state that their rewards are available to eligible switchers.
For students using an overdraft, NatWest, Santander, Nationwide, and Barclays stated that switching in the second year or later allows an application for the overdraft limit available for that year of study, rather than the first-year limit. Lloyds and Bank of Scotland's terms also indicate that later-year students can apply for higher overdrafts.
However, switching may involve a credit check, and moving accounts can be more complex if an overdraft is already in use. Experian, a credit reference agency, indicated that switching student bank accounts could lead to a temporary dip in a credit score.
Among the leading student accounts examined, Lloyds and Bank of Scotland offered the highest-value advertised rewards to eligible switchers, including £100 cash and £120 in Deliveroo vouchers. NatWest offered £100 and a four-year Tastecard, while Santander provided a four-year Railcard and cashback.