Abbey launches new student account

From mid August, Abbey will offer students a new account, which gives £50 cash when they open and pays 4 per cent in-credit interest on balances up to £500 in the account throughout their university education.

Abbey's student account offers students a stepped interest free overdraft, which increases annually. It starts at £1,000 in year one, rising to £1,250 in year two, £1,500 in year three, £1,800 in the fourth year and if you study for a fifth year you are entitled to £2,000 interest free.

Steve Shore, Director of Abbey Banking, commented: "Going to university is exciting but can be a difficult time when it comes to finances. Key to successful financial planning at university is making sure your money, when you have it, is working for you and also that your debts are not costing you too much.

"This is why our new student account has an interest rate of 4 per cent for balances up to £500 as well as a generous interest free overdraft which increases over the time you spend at university."

Other features of the account include:

A VISA debit or electron card with Chip & PIN
A chequebook
Access to your money via the Internet, in Abbey's 705 branches, through the 24-hour telephone banking service, any ATM showing the VISA symbol, the LINK cash machine network and by post

There is no monthly account fee, no transaction charges and no charges for using Abbey's student account facilities.

For students with an agreed overdraft over the interest-free limit, the interest rate is 9.9% and there are no fees.

Students will need to bring identification and proof of course with them to open an account - further information can be found on abbey.com.

International Students

Abbey is also launching a new account for international students studying in the UK. These students often experience problems trying to open a bank account here, so Abbey's new account has a simple opening process with great features for just £5 a month:

6 per cent interest on balances up to £500
VISA electron card
Free foreign cheque presentation
Santander Universities Students

For students whose University is part of the Santander Universities Network, you can open the a Santander Universities Student Account which pays an amazing 8% interest on the first £500 in your account.

Graduates

For students finishing their studies, Abbey also offers a graduate account with an interest free overdraft that scales down over three years. The account is designed to help graduates manage and pay off their debt in a realistic and sustainable manner.