Martin Lewis’ MSE team share best bank accounts for students – including overdrafts and freebies
It’s never been more expensive to go study as now universities can charge up to a maximum of £9,250 per year for courses. This means for a three-year course, some students will need to apply for a student loan that covers the £27,750, and that’s without mentioning accommodation.
With budgets stretched to the brink, Martin Lewis’ MoneySavingExpert (MSE) site has issued their bank account advice to help your money go further in a student bank account. Student accounts are simply bank accounts made for those in higher education and let you pay money in and out.
However, they also offer additional benefits such as an interest-free overdraft, that you otherwise would not get. Usually, you can open a student bank account after your A-level or Scottish Highers results have come through and you have a confirmed place at university. Here, we’ve listed some of the finance site’s best student account options and what you need to know.
Top student bank accounts
MSE says the following are the best student bank accounts to open:
Santander: guaranteed £1,500 0% overdraft + free four-year railcard
First-year students and those starting a level 4-7 apprenticeship are eligible for this. MSE says: “Not in your first year? You can switch in from another bank account if you’ve still 2+ years of study.”
NatWest / RBS: up to £3,250 0% overdraft + £100 free cash
To get the perks, just open the account and the £100 is paid within 10 working days.
HSBC: up to £3,000 0% overdraft + £100 free cash
First-year undergraduates and postgraduates, plus those on certain BTEC courses can apply for this.
Nationwide: up to £3,000 0% overdraft + £100 free cash
Those on a full-time UCAS registered course of 2+ years. You can apply up to five months before – or up to one year after – your course starts.
Student banking need-to-knows
MoneySavingExperts has some top tips to keep in mind when it comes to student bank accounts. They are:
1. Get the biggest and longest 0% overdraft you can – to avoid horrid 40% rates
2. You need to be 18 to get an overdraft (though some banks let you open an account at 17)
3. Beware, you’ll be credit-checked when you apply for the account or ask for an overdraft limit increase
4. Most accounts only let first-years open them, but a few let you switch later on 5. After university, switch to a top graduate account
