Scholarly Halifax Launch New Student Account

25-July-2008, Writes Dan Drage dan.drage@consumerchoices.co.uk

The boffins at Halifax are shaking up the student account market with an eye-catching new product.

The new Halifax (www.halifax.co.uk) student account, which will be made available from August 4th onwards, offers the following incentives:

• Up to £3,000 interest-free overdraft for up to five years while you are a student and for one year after graduating (up to a maximum of six years)
• 2% gross interest on in-credit balances
• Commission-free foreign currency and American Express Travellers Cheques
• 25% off AA membership for a year
• 20% discount on card care insurance
• Online and telephone banking plus the option to receive your statements online
• Withdraw up to £300 a day
• Visa Debit facility on your card so no matter where you are, you can use your card wherever you see the Visa sign in shops and at cash machines
• Cheque book available on request

Mike Regnier, head of banking at Halifax, has more background:

“Our account offers real long-term value. By choosing a Halifax Student Account, students with an overdraft could make a real saving. Unlike some other banks we also reward students who use their account in credit - paying them 2% gross interest.”

The Halifax student account is open to new and existing customers. Applications will be taken from Monday August 4th.

Chris Eagle, Commercial Manager at Credit Choices, can see the student account market hotting up this summer:

“To offer an interest free overdraft of £3000 in the first year of a student account is a brave move from Halifax. Barclays (www.barclays.co.uk) and HSBC (www.hsbc.co.uk) only offer a £1000 overdraft in the first year”

He continues:

“Should you exceed the interest free part of your overdraft however, Halifax will charge you 7.2% EAR.”