If you're planning to open a student bank account but are unsure which bank to choose or how to apply, you've come to the right place.

We'll start by outlining key factors to consider when selecting a bank account. After that, we'll provide a detailed review and comparison of the top student accounts available this year, presented in a clear comparison table.

 

What's in this Guide?

→ How to choose the best student bank accounts 2023/24

→ Top student bank accounts for 2023/24

→ Steps to open a student bank account

→ Student Bank Account F&Qs

 

 

How to Choose the Best Student Bank Account for 2023/24

 

Key Points to Consider:

1. Look Beyond Freebies: While offers like travel discounts, cash rewards, and exclusive deals are appealing, prioritise long-term benefits such as interest-free overdrafts.

2. Interest-Free Overdrafts: These accounts allow you to borrow money without paying interest, a unique benefit for students. Ensure you understand the terms and repayment conditions.

3. Credit Rating: Your credit score can influence the amount of overdraft you are offered. Check your credit score beforehand to increase your chances of approval.

 

Top Student Bank Accounts for 2023/24

 

Photo by Eduardo Soares on Unsplash

 

Bank	Overdraft Limit	Incentives	Student Satisfaction	Website
Santander	Up to £2,000	4-year Railcard	83%	Learn More
HSBC	Up to £3,000	None	74%	Learn More
Nationwide	Up to £3,000	None	79%	Learn More
NatWest	Up to £3,250	4-year Tastecard	82.8%	Learn More
RBS	Up to £3,250	4-year Tastecard	82.6%	Learn More
Halifax	Up to £1,500	None	72%	Learn More
Lloyds	Up to £2,000	None	81%	Learn More
Barclays	Up to £1,500	None	70.2%	Learn More
TSB	Up to £1,500	5% in-credit interest	60%	Learn More
Co-op	Up to £2,000	None	73.8%	Learn More

 

*Overdraft limits and incentives are subject to approval and terms. Please check each bank’s website for the most current details.

 

Steps to Open a Student Bank Account

 

Photo by Nick Pampoukidis on Unsplash

 

1. Gather Documents: You'll need photo ID (passport or driving license), proof of address (utility bill or bank statement), and proof of student status (university acceptance letter or UCAS offer letter).

2. Apply Online: Most banks allow online applications. Complete the process by uploading necessary documents.

3. Inform Student Finance: Once your account is open, update your Student Finance details to ensure smooth processing of your loans and grants.

 

Student Bank Account FAQs

 

- What Do I Need to Open a Student Bank Account?

To open a student bank account in the UK, you'll need:

- Why Do Banks Offer Student Accounts?

Banks offer attractive student accounts to cultivate long-term customers. They recognise that students are investing in their education, which typically leads to higher earning potential after graduation. By offering student accounts, banks aim to build loyalty and retain these customers for life.

- Why Do I Need a Student Bank Account?

A student bank account is essential for receiving Student Finance payments, like your Maintenance Loan. Although you can use a regular account, student-specific accounts offer exclusive benefits, such as interest-free overdrafts, making them particularly advantageous during your studies.

 

- Can I Open a Student Bank Account?

If you are over 18 and enrolled in a course at a UK college or university, you can open a student bank account. You'll need to provide proof of your student status. Some banks also offer specific accounts for international students.

 

- How Do I Open a Student Bank Account Online?

Most banks allow online applications for student accounts. After selecting a bank, visit their website to complete an online application and upload necessary documents, like photo ID. Applications are typically processed within 24 hours but can take up to a week.

 

- When Can I Open a Student Bank Account?

You can usually apply for a student bank account within six months of your course start date. It's advisable to apply between July and August to secure the best deals before the academic year begins.

 

- Can I Switch Student Bank Accounts?

Yes, you can switch student accounts during your course. We recommend checking for better deals each summer. The Current Account Switch Service makes the process easier, as banks handle the transfer for you.

 

- Can I Have More Than One Bank Account?

Yes, having multiple bank accounts is common. You can even have more than one student account, but to benefit from features like an overdraft, you need to pay in your Student Finance.

 

- What is an Overdraft?

An overdraft allows you to spend more money than you have, similar to a credit card but often cheaper or free with student accounts. Student accounts typically offer interest-free overdrafts, unlike regular accounts which charge fees and interest for overdrawn amounts.

 

- Can I Get a Postgraduate Bank Account?

Postgraduate students can usually apply for or switch to a normal student bank account if they are on a recognised master's or PhD course at a UK university. Some accounts are only for full-time students, so part-time students might need to use a regular current account.

 

- What Happens When I Graduate?

After graduation, your student account will typically convert to a graduate account. These accounts often give you a year or two to repay any interest-free overdraft. Consider switching accounts upon graduation for better terms.

 

- Can International Students Apply for a UK Student Account?

International students in the UK can apply for student accounts, although they usually won't be eligible for overdrafts and other benefits. Alternatively, international students can opt for basic current accounts or prepaid cards to avoid high fees.

 

- How Can I Protect Myself from Banking Scams?

Always safeguard your banking information. Never share your PIN or login details, and be wary of text message scams. If in doubt, contact your bank directly. Also, never agree to hold money in your account for unknown individuals, as students are often targeted as 'money mules'.