Our son’s off to university, how do we help out?

Working on that premise, and if you can afford it, it would be better if you lent him the money and work out a repayment schedule that suits you both. The student loan attracts interest at RPI plus 3 per cent while your son is studying and then between RPI and RPI plus 3 per cent, depending on how much he earns, once he graduates. Since the best instant access bank accounts pay only 0.65 per cent before tax, you could charge him a little interest and he’d still save money.

It is also worth remembering that for many students the maintenance loan will not cover their living costs anyway. The amount they receive is based on your income, so you may well find yourselves having to help him out even if you decide not to become the bank of mum and dad. For example if your household income is £70,000 then your son would only be entitled to £4,422 in maintenance grant which is unlikely to cover his accommodation costs let alone food and drink.

If your son wants the flexibility of an overdraft then the Santander 123 Student Account guarantees a 
0 per cent overdraft of £1,500 in the first three years and a free four year 16-25 Railcard. Other good student accounts include the HSBC Student Account which offers a £1,000 
0 per cent overdraft in year one and up to £2,000 in year two and up to £3,000 thereafter. It also gives £80 cash plus a £20 Uber Eats voucher or a year of free unlimited next day deliveries from ASOS Premier if you use the card more than five times in the first month. NatWest offers up to £2,000 interest free overdraft (£500 in the first term) plus £50 cash and a four year Tastecard. However with the HSBC and NatWest accounts not all students will get the full amount as it depends on their credit history.