Cardiff has risen six places up the cost of living league

Cardiff came out on top because of the lower cost of living and the readiness of students to work, the Royal Bank of Scotland said.

The average rent paid by Cardiff students is �67 a week, which is among the lowest in the UK.

More than half them have part-time jobs in the city, challenging stereotypes of "work-shy" students, the bank said.

The "alternative university league table" found they worked for about 18 hours a week - two hours more than the national average - and earn �131 a week on average

The work ranged from restaurants and bars to jobs in insurance and local government, the bank said.

Cardiff students' earnings offset the �181 a week they spend on living and housing costs.

The research, which measures outgoings against income, found the least cost effective place to study in the UK was Cambridge - where the average student spends �206 a week on living expenses and earns only �69 from term-time employment.

More than half the students in Cardiff take part-time jobs

Paula Barker, student financial adviser at the University of Wales Institute Cardiff, said she was "surprised" at the findings.

"We find that students struggle here in Cardiff probably just as much as anywhere else around the world," he added.

"However, the student rents in Cardiff are relatively cheap compared to other areas of the country and we do encourage our students to work part-time - so obviously they will manage a bit better if they are working."

But former Cardiff University student Toan Ravenscroft said he had found the city a relatively cheap place to study.

"For me at uni I had a part-time job - I took that as one of the considerations of going to uni in the modern day," said Mr Ravenscroft, who graduated in 2005.