Selecting the best student bank account is crucial for managing your finances efficiently throughout your academic journey. With numerous banks offering different perks, it’s important to choose an account that provides not only financial flexibility but also supports your unique needs as a university student. A best student savings account can help streamline your budgeting and make your time at university more enjoyable and stress-free.
What is a student account?
A student bank account is specifically developed for university students. Unlike normal current bank accounts, students receive privileges such as freebies and interest-free overdrafts. This implies that you will not pay interest if you use your “arranged” or “agreed” overdraft when you are studying at a university. While you may need to start repaying your overdraft once you graduate.
Usually, UK banks begin introducing their student banking offerings during the summer vacations, well before the start of the new academic year.
Benefits of student bank account
Plenty of student bank accounts provide the option of an agreed-upon interest-free overdraft, distinguishing them from other forms of current accounts. This implies that you can borrow up to £3,000 from certain banks amid your time at university and that you won’t be mindful of paying interest on the overdraft balance until after you graduate.
There are several advantages of student bank account, such as:
- A complimentary young person’s railcard offering a 1/3 discount on train tickets throughout Great Britain
- Cashback when you use your card to pay at particular merchants
- Deals at selected restaurants
- Subscriptions to applications or services
Best Student Bank Account
The ideal account should offer a combination of features designed specifically for students, such as interest-free overdrafts, no monthly maintenance fees, and useful benefits like travel insurance or exclusive discounts.
Compare student bank accounts
The chart below shows student bank account comparison in Britain.
| Student Bank Accounts | 0% Overdraft | Incentive |
|---|---|---|
| Barclays Student Additions Account | – £500 in term 1 – Up to £1,000 in the rest of year 1 – Up to £1,500 for the rest of your time at uni |
12-month Perlego subscription |
| HSBC Student Bank Account | – £1,000 in year 1 – Up to £2,000 in year 2 – Up to £3,000 in years 3+ |
None |
| Lloyds Student Account | – £500 for the first 6 months – Up to £1,000 for months 7 to 9 – Up to £1,500 until the end of year 3 – Up to £2,000 from year 4 |
£110 cash |
| Nationwide FlexStudent | – £1,000 in year 1 – Up to £2,000 in year 2 – Up to £3,000 in years 3+ |
£100 cash + £120 Just Eat vouchers |
| Santander Edge Student Current Account | – £1,500 in years 1 to 3 – £1,800 in year 4 – £2,000 in year 5 |
4 year Railcard + win tuition fees |
| Royal Bank of Scotland Student | – £500 in the first term – Up to £2,000 from the second term until the end of year 2 – Up to £3,250 in years 3+ |
Free £110 cash + cashback at certain retailers |
| Co-operative Bank | – £1,400 in year 1 – Up to £1,700 in year 2 – Up to £2,000 for the rest of your time at uni |
None |
| Halifax | Up to £1,500 | Free £110 cash + 0.5% interest + cashback at certain retailers |
| TSB | – £500 for the first 6 months – Up to £1,000 for months 7 to 9 – Up to £1,500 until the end of year 3 |
5% interest on balances up to £500 |
| Ulster Bank | – Up to £1,000, or up to £3,000 if you study medicine, dentistry, law, accountancy, pharmacy, optometry, physiotherapy or veterinary science | None |
1. Barclays Student Additions Account
0% Overdraft:
- £500 in term 1
- Up to £1,000 in the rest of year 1
- Up to £1,500 for the rest of your time at uni
Sign-Up Incentive: 12-month Perlego subscription worth £96
Review: The overdraft offered by Barclays isn’t as generous as other options and increases depend on your credit score. The Perlego subscription is a nice bonus but not the best available.
2. HSBC Student Bank Account
0% Overdraft:
- £1,000 in year 1
- Up to £2,000 in year 2
- Up to £3,000 in years 3+
Sign-Up Incentive: None this year. Existing customers with 5 transactions in the first 30 days may get £125 if they upgrade to a student account.
Review: HSBC Student Bank Account is another best student current account UK that offers a large overdraft, but new students won’t benefit from a sign-up incentive. Existing customers might find the £125 offer appealing.
3. Lloyds Student Current Account
0% Overdraft:
- £500 for the first 6 months
- Up to £1,000 for months 7 to 9
- Up to £1,500 until the end of year 3
- Up to £2,000 from year 4
Sign-Up Incentive: £110 and 2% interest on up to £5,000 balance (requires a deposit of £500 by 31st October 2024)
Review: If you have a poor credit score, Lloyds is a solid option since many applicants with lower scores are approved for the full overdraft. The tiered overdraft helps with budgeting, and the incentive is decent, but other accounts may offer better benefits.
4. Nationwide FlexStudent Account
0% Overdraft:
- £1,000 in year 1
- Up to £2,000 in year 2
- Up to £3,000 in years 3+
Sign-Up Incentive: £100 cashback and £120 in Just Eat vouchers (£10/month for 12 months). Must keep the account open and vouchers expire after 30 days.
Review: Nationwide offers a high overdraft limit and a substantial sign-up incentive worth £220 in total. The account is popular among students but is only available close to your course starting date.
5. Santander Edge Student Current Account
0% Overdraft:
- £1,500 in years 1 to 3
- £1,800 in year 4
- £2,000 in year 5
Sign-Up Incentive: 4-year 16-25 Railcard (worth around £100) and a chance to win up to £27,750 in a prize draw (deposit £500 between 15th July and 30th September 2024)
Review: Santander is the best bank account for students that guarantees the full £1,500 overdraft. The Railcard offered by Santander is valuable for train travel, and the prize draw offers exciting, though unlikely, rewards.
6. Royal Bank of Scotland Student
0% Overdraft:
- £500 in the first term
- Up to £2,000 from the second term until the end of year 2
- Up to £3,250 in years 3+
Sign-Up Incentive: Free £110 cash + cashback at certain retailers
Review: Royal Bank of Scotland is the largest bank in the United Kingdom with operations all over the world. It is headquartered in Edinburgh and has more than 2,000 branches across the UK and Ireland, serving more than 15 million customers.
7. Co-operative Bank
0% Overdraft:
- £1,400 in year 1
- Up to £1,700 in year 2
- Up to £2,000 for the rest of your time at uni
Sign-Up Incentive: None
Review: Co-operative Bank is a British retail and commercial bank headquartered in Manchester, United Kingdom. Complied with the principle of Rochdale Pioneers, Co-operative Bank developed into a mid-sized British high street bank in the 20th century with operations across the UK mainland.
8. Halifax
0% Overdraft: Up to £1,500
Sign-Up Incentive: Free £110 cash + 0.5% interest + cashback at certain retailers
Review: Halifax is the UK’s largest mortgage lender and savings bank. It provides best student savings account. Halifax offers a wide range of personal financial services businesses, including: long-term deposits, home and start-up car insurance, and credit cards.
9. TSB
0% Overdraft:
- £500 for the first 6 months
- Up to £1,000 for months 7 to 9
- Up to £1,500 until the end of year 3
Sign-Up Incentive: 5% interest on balances up to £500
Review: TSB Bank is based in Edinburgh and was formerly part of Lloyds Bank. Founded in 1688, TSB is primarily engaged in banking, loans and mortgages, savings and investments, insurance, and has more than 2,400 branches worldwide.
10. Ulster Bank
0% Overdraft:
- Up to £1,000, or up to £3,000 if you study medicine, dentistry, law, accountancy, pharmacy, optometry, physiotherapy or veterinary science
Sign-Up Incentive: None
Review: Ulster Bank is a part of NatWest Group. Ulster Bank, with its strong market presence in the Republic of Ireland, offers a wide range of retail, commercial and investment banking services to local clients.
Best bank accounts for international students
Are you excited about studying in the UK? However, living so far away from home, you should know what uni essentials to bring. In order to live better abroad, you should open best student bank account UK. As an international student, you can refer to top 10 banks in the UK to choose the right bank for you.
So, Can you open a UK bank account from abroad? In some cases, you can open a UK bank account abroad. You can check the official website for UK banks, and then select one that can open an account abroad. But you may find that your options are limited. We recommend that you can choose the right bank account in advance. After arriving in the UK, you should go to the best bank for students with the required materials as soon as possible.
How to Choose the Best Student Bank Account
There are numerous aspects to consider while selecting the best student bank account. Below are the key factors:
- Opt for a Large Overdraft
Student bank accounts usually offer 0% interest on overdrafts, making it a cost-effective borrowing option. Even if you don’t use the full overdraft, you might transfer some to a savings account to earn interest. Note that the 0% period ends after graduation.
- Check Overdraft Terms
Look for clarity on whether the advertised overdraft is “up to” or “guaranteed”. Many banks offer the maximum amount only in your final year and to those with good credit.
- Avoid Chasing Freebies
Student accounts often come with tempting freebies, but prioritize practical benefits like a large interest-free overdraft instead. A £20 freebie might not outweigh a substantial overdraft.
- Know Your Credit Rating
Your credit score affects your overdraft limit. Check your score with a free service like Experian and take steps to improve it before applying.
- Understand Repayment Conditions
Be aware of when and how you’ll need to repay your overdraft. A sudden repayment demand can be surprising, so plan in advance.
How to Open a Student Bank Account
It is important to take the time to carefully consider your options and select the best student bank account UK for your needs, as it can have a big influence on your stay at university.
What Do I Need to Open a Student Bank Account?
To qualify for a student bank account, you have to be a citizen of the UK aged 18 or older. Additionally, you must be enrolled or have an unconditional offer to take a course leading to a higher education degree, such as an undergraduate degree.
If you meet the requirements for a student account, opening one is usually a simple process that can be completed online or offline. To open an account, you need to show your personal info, such as:
- Proof of identity
You’ll need to provide one or two types of identification, such as your driver’s license and passport.
- Proof of address
It could be a utility bill or a bank statement. Some banks will need you to show that you have lived in the UK for the preceding three years.
- Proof of your student status
This might be your UCAS (the Universities and Colleges Admissions Service) status code or a letter from your selected university confirming your acceptance into a qualifying study.
Steps to Open a Student Bank Account
- Before you start, check your eligibility and choose the best bank for student account where you wish to open a student bank account.
- Prepare the required personal documents that are mentioned in the previous section.
- Once you’ve gathered the necessary documents, set up an appointment with your chosen bank. You’ll need to visit a local branch to complete the process.
- Choose account types between Student Account and International Student Account.
- As a student, you might be eligible for an interest-free overdraft. Check with each bank to see if they offer this feature when opening one.
When you’ve opened your account, make sure to update your personal details with Student Finance. This ensures that any student loans or grants are deposited into your new account. To take advantage of any included interest-free overdraft, you may need to ensure that your student finances are transferred to your student bank account.
Conclusion
The best student bank account provides essential features designed to support students through their academic years. Good student accounts offer benefits like a generous interest-free overdraft to help with unforeseen expenses, no monthly fees, and useful extras such as freebies and discounted prices at certain eateries. By selecting one of the best savings accounts for students, you ensure that your finances are managed efficiently, allowing you to focus on your studies without worrying about unnecessary costs. With these features, you can enjoy a smoother financial experience and take advantage of added perks that enhance your time at university.
FAQ
Barclays Student Additions Account is the best student savings account.
Other good student accounts include HSBC Student Bank Account, Lloyds Student Account, Nationwide FlexStudent, Santander Edge Student Current Account, Royal Bank of Scotland Student, Co-operative Bank, Halifax, TSB, and Ulster Bank.
Overdraft means that your bank account balance is negative after a transaction, that is, you owe the bank money.
Yes.
Many banks offer student current accounts for international students in the UK. You can visit UK banks‘ official websites to make sure if they provide the best savings accounts for students.
Yes.
Some banks provide accounts designed for postgraduate students.
When your A-Level or Scottish Highers results are revealed, and you have been accepted to your selected university, you can apply for a student bank account right away. If you have received an unconditional offer from UCAS, you may be eligible to apply up to six months before your course starts.
Typically no.
Although you can have many current or savings accounts, you will most likely only be granted one student account. Typically, obtaining the benefits of a student account requires that you pay your student loan into that account. Banks do regular checks to ensure that this is true.
When you graduate, most banks will transfer your account to a graduate account or a postgraduate bank account. The main reason to open and use one of these accounts is if you are still in overdraft. Many of these institutions still provide interest-free overdrafts, which can assist in expanding your buffer and give you extra time to pay off the loans you have.
Yes.
You can switch your student bank account if you are unhappy with your current account. However, please pay attention to the requirements. For example, some accounts are only provided to students in year 1.
Banks are making students their targets with generous incentives for a good purpose. Students are basically investing in themselves so that when they graduate, they will earn more than the average salary. While you may be borrowing now to support your education, banks want you to reap the benefits. So, they’re “betting” on you to become a loyal, long-term customer.
Banks want to build loyalty. Once you’ve opened a student bank account with them, you’re likely to stay with them for life. Remember that you do not have to be loyal. To get the best student bank account offers, you can try other banks. Switching may appear to be a challenge, but it can pay well for many students and grads.
