HSBC has launched a new student bank account and made it available to all apprentices.
Following the initial introduction of the student account to level 4 (degree) apprentices last year, HSBC is extending the availability to all apprentices aged 18 or over, enabling them to enjoy the same benefits as those studying a full-time degree at a university or college.
HSBC’s student account is also being linked to its regular savings account, which will provide apprentices with the opportunity to get into a savings habit with a great interest rate to make their money work hard for them.
The 2018/2019 student account, which is for those in their first year of university or starting an apprenticeship, comes with several additional benefits:
- £80 Amazon Gift card (versus £60 last year)
- 12 months of access to Amazon Prime Student (same as last year)
- A fee- and interest-free overdraft offer of £1,000 (versus a £500 minimum last year)
- A regular saver paying 3% interest (new this year)
The student account was available from 21 June, much earlier than in previous years, enabling applications from students with a guaranteed offer from a university or apprenticeship scheme, whereas previously applications were only accepted after A-level results were known.
The student account also gives access to the HSBC Connected Money app, the first app from a UK bank that allows customers to see their accounts on one screen, meaning students and apprentices will be able to keep a close eye on their money from up to 21 different banks.
Becky Moffat, head of personal banking at HSBC, said: “Everyone’s banking needs are different, some of us are spenders and some are savers or a mixture of both, but whichever you are the changes we have made to this year’s student account will support you and your needs.”
The introduction of a regular savings account will help some get into a good savings habit with a great interest rate, Moffat said, and HSBC’s guaranteed £1,000 overdraft will help those who might need a little more help and flexibility for their account.
She said: “While we know the majority of customers will not need it, students and apprentices have the option in future years to increase their limit if they need additional spending power.”
Moffat added: “Importantly, we are harnessing the power of new technology to help customers keep a close eye on their money. Students and apprentices live extremely busy lives, and the Connected Money app will help them take and keep control of their finances. It will make it easy for them to see how much money they have after bills, analyse their spending patterns and allow them to have a better overview of their finances by enabling them to see products from other providers.”
Extending the eligibility of HSBC’s student account to all apprentices was welcomed by Keith Smith, director in the apprenticeships group at the Education and Skills Funding Agency.
He said: “I am delighted that those individuals who choose an apprenticeship are getting more access to some of the benefits more widely available to university students. It helps us massively in the work we are doing to showcase how apprenticeships are an equally valid route to a great career as going to university.”
“Opening up student bank accounts to apprentices, as HSBC are doing, is great for those individuals in receipt of salaries for the first time. And, being able to open these accounts prior to exam results being known, is a brilliant step forward for those individuals with apprenticeships already lined up.”