Latest news with #studentaccount
Yahoo
6 days ago
- Business
- Yahoo
Lloyds's new student current account does little to stand out from competitors
Lloyds Bank has launched a new student current account aimed at attracting younger customers in the UK, offering a £100 ($135) cash incentive, £90 in Deliveroo vouchers, and an interest-free arranged overdraft of up to £1,500, subject to application and eligibility. This initiative positions Lloyds alongside other major UK banks in the increasingly competitive race to win over Gen Z account holders ahead of the new academic year. However, cash incentives and food vouchers may not be sufficient for Lloyds to win the race, as GlobalData's Consumer Profile Analytics 2024 suggests that the majority of UK Gen Z consumers are choosing their financial services provider based on problem resolution and digital user experience. Although only 28% of UK Gen Z have taken loyalty rewards into account for their financial provider selection, the addition of Deliveroo vouchers is a notable effort to appeal directly to students' spending habits and lifestyle preferences. With food delivery services and convenience purchases being common among university students, these incentives are strategically designed to offer immediate value. But while these incentives may play a role, Lloyds must also demonstrate strength in customer service quality and digital offerings to effectively compete for these new young customers, as the bank is far from alone in targeting the student demographic. Competing banks are offering comparable packages. NatWest, for example, provides a student account with £85 in cash and a Tastecard valid for four years, worth £80 annually. Meanwhile, Nationwide is offering £100 in cash plus £120 in Just Eat vouchers. With such similar offerings across the market, Lloyds's new account lacks strong differentiation. Its features, while useful, do not set it meaningfully apart from what is already available in the market. GlobalData Consumer Profile Analytics 2024 Additionally, GlobalData's Consumer Profile Analytics 2024 reveals that UK consumers prefer to take new financial products from their main current account provider. 'I was already a customer' is the most selected reason for credit card and savings provider choice in the country. Against this context, Lloyds's push to bring students to set up accounts early on takes on greater long-term significance. Successfully onboarding students now could lead to a deeper customer relationship in the years ahead, as young adults take out credit cards and set up savings accounts. In short, Lloyds is in the race, but it is far from a guaranteed frontrunner. As UK banks compete for the attention of younger customers, particularly those entering higher education, the effectiveness of these incentive-based strategies will likely depend on how well banks can pair short-term benefits with long-term service. While Lloyds remains in the competition for younger customers, the lack of unique or standout features means its success may be modest and limited.
Daily Mail
03-07-2025
- Business
- Daily Mail
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.
