If you’re heading off to university this month, it’s worth considering a student bank account. Here we take a look at some of the best around.
Student bank accounts are similar to standard current accounts, but often come with great perks such as cash, discounts on shopping and travel, and interest-free overdrafts. These can be particularly helpful when you’re studying and don’t have a full-time income.
Most banks require you to be in your first year of study to open a student bank account, so you might want to act quickly.
In this article, we explain:
Read more: Five best current accounts
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Our top student bank accounts
There are many factors to consider when choosing the right student bank account for you.
One bank may be offering some great discounts on certain restaurants for example, but that’s no good if you never go to those places to eat. So make sure that you will make use of the benefits on offer.
Consider the location of your nearest bank branch. Choosing one close to where you live at university could mean that if you run into trouble, you can get in-person help with your account.
You may also value a larger interest-free overdraft, which are common with student accounts. Remember though that an overdraft is still debt, and you’ll need to pay it back one day.
Read more: Everything you need to know about student finance and how to apply
– £100 cash paid into your account within ten days of opening it
– A free Tastecard worth £39.99 a year, which gets you discounts of up to 50% at restaurants across the country
– Interest-free overdraft facility of up to £2,000 in the first year and up to £3,250 from year three onwards
– You can open an account within six months of your course start date
– £100 cashback when you open the FlexStudent account and pay in at least £500 before 15 December
– Interest-free overdraft facility of up to £1,000 in the first year; up to £2,000 in year two; up to £3,000 in year three
– Tiered overdraft repayment over three years after you finish your course
– You need to pay in at least £500 per term
– You can open an account up to five months before the course starts or up to 12 months after
– A free four-year 16-25 Railcard (worth £100), saving one third on rail in Great Britain
plus a total average saving of £728 (average saving of £182 per year)
– Offers a guaranteed interest-free arranged overdraft of £1,500 in years 1-3 (subject
to status)
– Also offers an interest-free arranged overdraft of up to £1,800 in year 4 and up to
£2,000 if you stay on to year 5 (subject to status)
– Get cashback, vouchers, prize draws and other offers personalised with
Santander Boosts
– £100 paid into your account when you open or upgrade to an HSBC student bank account, plus a free one-year subscription to Headspace, a meditation and mindfulness app
– It has an interest free overdraft of £1,000 in the first year, rising to £3,000 in third year
– The first year after graduating the interest free limit stays at £3,000 and then reduces to £2,000 the second year after graduating
– App includes useful budgeting tools that show you how much money you’ll have after your regular bill payments
– Interest-free overdraft of up to £1,500 in your second year, up from £500 when you open the account
– Free 12-month subscription to Perlego, an online library with thousands of textbooks
– Students can start opening an account using Barclays’ app, with just a selfie, their ID and a UCAS code, so no need to visit a branch
– The bank’s Higher Education Account also scored highly
Best student switching bonuses
In the past students used to be able to enjoy cash bonuses of around £100 for switching accounts. But these freebies are now few and far between.
Read more: Student discounts: how to get them and our top picks, including Asos and Apple
We don’t recommend choosing a bank account just for a switching bonus, but there are some offers for new customers to take advantage of. Here are the top ones:
| Bank | Perk |
| Natwest and RBS | £100 cash bonus plus a four-year Tastecard, which gives you discounts at many restaurants in the UK |
| HSBC | £100 cash bonus plus a year-long subscription to Headspace, a meditation and mindfulness app |
| Nationwide | £100 cash bonus |
| Santander | A four-year young person’s railcard |
| Barclays | 12-month subscription to Perlego, an online textbook library |
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What do I need to open a student bank account?
Part-time or full-time student bank accounts are very similar to a standard current account but are specially designed for those in higher education.
You need to be 18 or over to get an overdraft, but some banks will let you open a student account with them when you are 17.
In order to be accepted for an account, you will need to show the bank:
- Your UCAS confirmation letter, with an unconditional offer
- Proof of address
- ID such as a passport
If your offer is conditional then you will need to supply the bank with a letter from your university confirming your place or your A-level results.
Opening your account can take place once you have provided the bank with all the information it requires and you have gone through credit scoring checks.
Once you have graduated, most banks will automatically turn your student account into a graduate bank account. This will offer a way of repaying your overdraft over a set period.
Heading off to university soon? Check out our preparing for university checklist.
Is it worth getting a student bank account?
You don’t actually need to open a student account if you are in higher education, but it might be worth having one.
Here are some of the benefits of opening your account:
- Day to day banking: you need a bank account if you are getting a maintenance loan, job or paying bills (the part of your student loan that covers tuition fees will go directly to the institution where you are studying, not to you)
- Interest free overdraft: provides an excellent security blanket in case you need extra cash
- Perks: the accounts also tend to offer pretty good freebies, such as discount rail travel or gift cards
There are things to watch out for and consider when choosing a student account:
- Don’t be swayed solely by the freebies and discounts
- Do your homework and choose the account that is right for you and your needs
- Look out for building societies or banks offering “up to” such an overdraft limit and not “guaranteed” facilities
- Research savings account to save up money
- Make sure you fully understand the overdraft repayment conditions
- Beware of the ”up-sell” – many banks, once they have you on their books, will try to encourage you to take out other products, such as loans or credit cards
Find out more in our guide to student finances.
Can a student have two bank accounts?
In theory, you can open multiple student bank accounts. However, most banks and building societies state in their terms and conditions that you need to be exclusive to them.
If you have opened a student bank account and already used up your overdraft facility, it may be tempting to open another, but taking on more debt is rarely sensible.
Debt can spiral out of control and could have a disastrous effect on your credit score. We explain more here.
If you are struggling financially, speak to your university.
We have lots more tips on how to make your money go further in our guide to budgeting.
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