School leavers across the country will soon be getting their A-Level results, and those who have applied to university will find out where they are headed.

For many, managing their student loan will mark their first taste of financial independence.

This is big business for banks. So as the start of the academic year draws closer, they are once again battling it out to woo freshers and returning students alike into opening an account with them with a raft of new perks. 

Last week Santander launched a prize draw for new Edge Student current account holders, with 20 students being in with a chance to win £27,750 - three years' worth of tuition fees - and a further 30 set to win £9,250.

Meanwhile Nationwide is offering £100 cashback and 12 months of Just Eat vouchers worth £120 with its FlexStudent current account.

This is Money picks out some of the best options for students heading to university.

Best overall student account

Santander Edge Student Current Account

Students who open Santander's current account between now and 30 September will have the opportunity to be entered into a prize draw to win three years' worth of tuition fees.

It will hand out the top prize of £27,750, the equivalent of three years' worth of tuition fees, to 20 lucky students. Another 30 students will be in line to win £9,250, the equivalent of one year's fees.

Santander is also offering a free 16-25 railcard to students who sign up to its current account.

Normally, a railcard costs £30 a year or £70 for three years. Santander said the average 16-25 Railcard user saves £192 a year with the card.

Students can also get an arranged interest-free overdraft of £1,500 in years one to three of their studies.

Rachel Springall, finance expert at Moneyfacts Compare, says: 'One of the most lucrative offers comes from Santander with its Railcard. But not only this, it is now putting on a prize draw where 20 students could win a big sum of cash to pay off an equivalent of three years of tuition fees.

'In addition, customers can sign up for Santander Boosts to receive cashback, vouchers, offers and prize draws from selected retailers, so along with the interest-free overdraft of £1,500 in years one to three, the Edge Student Account could then be an attractive choice overall.'

It is worth keeping in mind that any discounts need to be used frequently to maximise the benefits.

Best student accounts for overdraft

The most generous overdrafts this year come from NatWest, HSBC and Nationwide Building Society.

An arranged overdraft allows students to borrow money (up to an agreed limit) if there's no money left in their account. 

Many student accounts allow students to go overdrawn by a certain amount without being charged interest on the borrowing. 

They can be a useful emergency float if they're hit with an unexpected bill, for example.

How much of an overdraft a student will get after the first year of their studies depends on their credit record. They may need to ask for the increases at the end of the year, if it does not increase automatically.

NatWest Student Bank Account

NatWest's student bank account offers a £500 interest-free overdraft in the first term of the first year, which can increase to £2,000 in the second term of first year until the end of the second year. Students can apply for up to £3,250 interest-free from year three onwards.

Springall said: 'One of the most popular features of a student bank account is the interest-free overdraft. This year NatWest offers the most generous tariff and will also give applicants £100 in free cash and a Tastecard as sweeteners.'

HSBC Student Bank Account

HSBC's student bank account comes with a £1,000 interest-free overdraft in year one, which can increase to £2,000 in year two and up to £3,000 in years three and after.

Nationwide FlexStudent Bank Account

Nationwide's student bank account offers interest-free and fee-free arranged overdrafts to students of up to £3,000 by the third year.

Students can apply for an overdraft of up to £1,000 in their first year, up to £2,000 in their second year and up to £3,000 in their third year.

Students need to pay in at least £500 each term, keep up with any bill payments and stay within their arranged overdraft limit.

Best student accounts for free cash

NatWest Student Bank Account

NatWest is offering students £100 cashback for opening a student bank account. They will receive the cash within 10 days of opening a NatWest student account.

Nationwide FlexStudent Account

Nationwide is offering £100 in cashback to students who open a FlexStudent account. Students need to pay in £500 before 13 December 2024 to get the £100 cash.

The £100 will arrive within 14 calendar days of paying in £500.

Students who have already claimed a FlexStudent offer, or had a FlexStudent or FlexGraduate account open on 15 July 2024 will not qualify for this offer.

Best student accounts for other freebies

NatWest Student Bank Account

NatWest is offering students an annual Tastecard valid for four years, worth £55 per year.

With this, students can get two meals for the price of one, 50 per cent off a food bill or 25 per cent off the entire bill at thousands of UK restaurants.

Nationwide FlexStudent Account

Nationwide's student account comes with 12 months of Just Eat vouchers worth £120.

The FlexStudent account is also one of the current accounts eligible for Nationwide's £100 fairer share payment.

Students who have this account and at least £100 worth of savings in a Nationwide savings account may be eligible for a £100 payment next year, if Nationwide decides to hand out the cash again.

TSB Student Bank Account

Students can earn 5 per cent interest on the first £500 in their bank account with TSB's student account.

No interest will be earned on balances above £500.