Best UK student bank account in 2024

Let’s dive into the world of student bank accounts – the ultimate tool for mastering your finances during your university journey. 

We’re going to go through everything you need to know about some of the best student bank accounts available, so you can decide which one is best for your needs. 

What is a student bank account?

Student accounts are specially tailored bank accounts designed to make your financial life easier, offering perks like interest-free arranged overdrafts that provide a safety net for unexpected expenses. 

What is an overdraft?

If you are only just starting your financially independent life, you may be thinking what is an overdraft:

• An arranged overdraft is an amount of money agreed between you and your bank that acts as a safety net – say you had an overdraft of £500, this would mean when your bank balance is £0 you still have £500 in credit with your bank. 
• An unarranged overdraft – using the same example if you have £500 credit and you go over this agreed limit you will be in an unarranged overdraft – if you fail to pay this off within a short period you will likely be charge a high interest rate until you pay off the remaining funds – you don’t want to go into your unarranged overdraft! 

Top Tip: Don’t forget a student overdraft is NOT free money – you WILL have to pay it back after you finish university. 

Why should I open a student account?

An overdraft is important especially for students! Student accounts are slightly different from current accounts; your overdraft is interest free which means if you go into your arranged overdraft you will not be charged – this continues for student account holders for up to 3 years after you finish studying. There’s loads of accounts out there offering various benefits.

What are the perks of student bank accounts?

• 1. Interest-Free Overdrafts: Financial Flexibility at Your Fingertips This feature provides students with much-needed financial flexibility during their studies and often extends for a period after graduation.
• 2. Additional Benefits and Perks In addition to interest-free overdrafts, student bank accounts often come with a range of other benefits and perks. From free discount cards and cashback rewards to enticing freebies like railcards and gadgets, there’s plenty to enjoy.
• 3. Expert Financial Advice Banks understand the unique financial challenges that students face and are there to offer expert advice and support. Whether you’re a budgeting pro or just starting to get a handle on your finances, banks can provide guidance every step of the way.
• 4. Essential for Effective Money Management Opening a student account is essential for managing your money effectively during your university journey. With various accounts offering different benefits, it’s important to explore your options and find the one that best fits your needs.

Top Tip: Typically you can only have one student bank account at a time and some banks will only let you open an account as a first year student so always check eligibility before you apply.

What makes a good student bank account?

Honestly what makes a good student bank account depends on you and what you value most from a bank for your studies. We’ve made it easy for you by breaking down our top student bank accounts in the UK and who they might suit: 

Top Tip: Always check the T&Cs before agreeing to a student bank account 

Our top Student accounts in the UK:

• Features: Interest-free overdraft up to £1,500 over 3 years, 5% AER interest on balances up to £500.
• Pros: Offers a decent interest rate on balances, interest-free overdraft.
• Cons: Limited overdraft amount compared to others, gradual decrease in interest-free overdraft post-graduation.
• Overall Review: TSB’s student account provides a reasonable overdraft facility and a modest interest rate on balances. However, the overdraft amount may not be as generous as other options, and the interest-free period decreases after graduation.

Nationwide FlexStudent Account:

• Features: Interest-free overdraft up to £3,250 by the third year, increasing over the years.
• Pros: Generous overdraft limit, overdraft increases over the years.
• Cons: Requires the account to be the main one for income, with a minimum deposit requirement.
• Overall Review: Nationwide’s student account offers a generous overdraft facility that increases over the years. However, it has some requirements such as being the main income account and regular deposits.

Barclays Student Additions Account:

• Features: Interest-free overdraft up to £1,500 over 3 years, international branch access.
• Pros: Easy access to international branches, interest-free overdraft.
• Cons: Variable overdraft interest charges post-graduation.
• Overall Review: Barclays’ student account provides convenient access to international branches and an interest-free overdraft. However, post-graduation, variable overdraft interest charges may apply, which could affect overall costs.

Natwest Student Account:

• Features: Interest-free overdraft up to £3,250 by the third year, free tastecard for 4 years.
• Pros: Generous overdraft limit, additional perks like the tastecard.
• Cons: Requires the account to be the main one for income, overdraft decreases post-graduation.
• Overall Review: Natwest’s student account offers a generous overdraft limit and additional perks like the tastecard. However, post-graduation, the overdraft decreases, and there are requirements regarding income account status.

HSBC Student Bank Account:

• Features: Interest-free arranged overdraft up to £3,000 by year 3, possible loan up to £3,000.
• Pros: Generous overdraft facility, option for a loan in year 3.
• Cons: No freebies, repayment period for the interest-free overdraft.
• HSBC Student Bank Account: HSBC’s student account offers a substantial overdraft facility and the possibility of a loan. However, it lacks additional perks and has a repayment period for the interest-free overdraft.

Santander 1|2|3 Student Current Account:

• Features: Interest-free arranged overdraft up to £2,000 in year 5, free 4-year railcard.
• Pros: Additional perks like the railcard, interest-free overdraft.
• Cons: Requires regular deposits, decreasing interest-free overdraft post-graduation.
• Overall Review: Santander’s student account offers useful perks like the railcard and an interest-free overdraft. However, it requires regular deposits and the interest-free period decreases after graduation.

• Features: Arranged overdraft up to £2,000 in years 4-6, credit interest on balances.
• Pros: Credit interest on balances, arranged overdraft facility.
• Cons: No freebies, decreasing overdraft limit repayment.
• Overall Review: Lloyds Bank’s student account provides a credit interest on balances and an arranged overdraft. However, it lacks additional perks and has a decreasing overdraft limit repayment structure.

Which Student account might be best for you?

TSB:

• Students who prioritise savings: The 5% AER interest on balances up to £500 could benefit students who want to earn interest on their savings while having access to an interest-free overdraft for financial flexibility.

Nationwide:

• Students with varying financial needs: The increasing interest-free overdraft limit over the years could benefit students who anticipate their financial requirements growing throughout their academic journey.

Barclays:

• Students who plan to travel internationally while they study: The availability of international branches might be advantageous for travelling students who require global banking services and accessibility.

• Student food enthusiasts: The offer of a free tastecard for 4 years could benefit students who enjoy dining out and want to save money on their food expenses.

HSBC:

• Students planning for future financial needs: The option to loan up to £3,000 in year 3 could benefit students who anticipate needing additional funds for future expenses or investments.

Santander:

• Students who plan to travel regularly by train: The offer of a free 4-year railcard and no fees for using Santander cash machines abroad could benefit students who frequently travel within the UK or internationally.

Lloyds:

• Students interested in earning interest: The credit interest of 2% AER variable on balances between £1 and £5,000 might benefit students who want to earn interest on their savings while studying.

How do I Open a student account?

• 1. Research: While our guide provides a great starting point, it’s always wise to conduct your own research to find the perfect match for your needs and preferences.
• 2. Choose: Select the bank that offers the student account with the most suitable perks and benefits for you. Consider factors like interest rates, overdraft limits, and additional perks offered by each bank.
• 3. Check Eligibility: Before diving into the application process, ensure you meet the eligibility criteria. Typically, you’ll need to have received your A-level or Scottish Higher results and be enrolled in a university or college course. Additionally, you must have a UK address and have been a UK resident for the past three years.
• 4. Complete the Application Process: Now that you’ve chosen your preferred bank, it’s time to complete the application process. Many banks offer online applications, making it convenient. However, some banks may need you to apply in branch to open an account.
• 5. Provide Documents: Gather all the necessary documents before starting the application process. You’ll likely need to provide identification, proof of enrollment in your university or college, and proof of your UK address. Having these documents ready will streamline the application process and ensure a smooth experience.

Things to be a little careful of

Credit cards and store cards:

Although handy in a tricky situation you can be charged interest which can quickly add up – so if you are planning on using them try to payoff anything you owe by the end of the month to avoid any debt with the bank.

Check your overdraft limit:

When overdrafts are no longer interest free, fees can build up and extra charges for going over your arranged overdraft are usually very high!

Be aware of any bank charges:

Make sure you read through your agreement before applying for your student bank account – you don’t want to be hit with any hidden charges!

Remember you will have to pay it back:

Student overdrafts are not free money – once you graduate you will likely be given a time period where you can pay back your overdraft interest free, so make sure you don’t get in over your head. 

What should you do with your student bank account after university?

Usually after you have finished university your bank will convert you bank account to a graduate account. Typically graduate accounts will encourage you to pay the debt you have for example:

Year 1 after graduation: Interest Free amount: £3,000

Year 2 after graduation: Interest Free amount: £2,000

Year 3 after graduation: Interest Free amount: £1,000

Top Tip: Our student bank account table shows you what you might expect after graduation – this is something to be considered when choosing your bank. 

Best Student Bank Account Quick Q&A

When can I open a student bank account?

You can open a student bank account once you have received your enrolment letter from University or College

Can I switch student bank accounts?

Yes, most banks offer student accounts that you can switch, however it’s always best to check with your bank.

Can I have more than one bank account?

Yes, you can have more than one bank account. E.g. a current account and a student account. However you cannot typically have more than one student account.

An overdraft is an amount of credit usually agreed between you and your bank that you can be used as a safety net.

Can I get a postgraduate bank account?

Yes, some banks do offer a post graduate student account or will extend your student account until you graduate.

Can international students apply for a UK student account?

Unfortunately the majority of banks do not offer the same benefits to international students. However, there are student accounts available for international students.