Student Current Accounts

What is a student bank account?

A student bank account is a type of current account that’s designed for students in higher education, including undergraduates, postgraduates and those on a level 4 or 5 National Vocational Qualification (NVQ) course, for example.

It functions in the same way as a standard current account, but often comes with extra perks that students may find particularly appealing such as exclusive discounts, vouchers and cashback offers.

Student bank accounts also typically come with an interest-free overdraft, which means students can borrow money at no extra cost (as long as they pay off the overdraft before the interest-free period ends).

Do you need a student account?

It’s not essential to have a specific student account, but you will almost certainly need some kind of current account to make and receive payments, including your student loan.

Any standard current account should be adequate for a student to manage their finances. However, because student bank accounts often come with additional features and perks, students are likely to find they are more useful and appealing than a standard account.

For example, student accounts typically offer an interest-free overdraft, which could provide an invaluable financial cushion for those struggling with the cost of student life.

It means that, if you need to pay an essential expense but don’t have enough money in your account to cover it, you can dip into your overdraft at no extra charge. However, it’s important to remember that an overdraft is a debt that you need to pay off, otherwise you could face expensive charges once the interest-free period ends.

How to open a student bank account

You can open a student bank account in a number of ways, including online, via mobile app or by visiting a branch, for example.

When you apply for a student bank account (or any current account), you will usually need to provide proof of identity and address, such as a passport or driving licence.

To open a student account, you also need to provide additional confirmation of your status as a student.

For example, you may need to provide the bank with your UCAS code or a confirmation of an unconditional offer from a university.

When opening a student account with an overdraft, banks will also run a credit check during the application process.

Bear in mind that you need to be at least 18 years old to have an overdraft with your bank account. Some providers may allow you to open a student account if you’re still 17 years old, but you won’t be able to have an overdraft until you turn 18.

When should I open a student bank account?

Ideally, you will open a student bank account before you start university, so you’re set up to receive your student loan and manage your money from day one.

Many banks start to offer perks and special discounts with their student current accounts a few months before the academic year begins, so it’s worth comparing options over the summer.

If you’re about to start your first year of university, you may need to wait until your place is confirmed, such as after results day, before you can open an account.

Some student bank account deals may only be available to those about to start university, and run for a limited period. However, other providers may allow you to open a student bank account (and receive their perks) during your first year or even later on in your studies.

How to find the best student bank account

When deciding which student bank account to open, it’s important to consider a range of factors, including:

• Is there an interest-free overdraft and, if so, how long does it last? Note that you may not be guaranteed to receive the full advertised overdraft limit.
• Does it offer any extra perks or discounts that would be useful for you?
• Do you need to pay in a minimum amount each month?
• How can you open and manage the account?
• Are there any fees for spending abroad?
• Do you meet the eligibility criteria? Some accounts may only be available to first-year students while others are available to all students.

Bear in mind that, while vouchers, discounts and other offers can be appealing incentives, don’t choose a student account based solely on these perks. Look at the account as a whole to see if it’s suitable for you.

At the same time, make sure you consider whether any perks give you value for money. For example, a free railcard could be a significant perk and money-saver for those who regularly use the train, but those who rarely travel by train may benefit more from an account that offers discounts at certain stores.

What is the best student bank account?

The best student bank account for you will depend on your individual situation and which perks (if any) you would benefit most from.

Most student accounts come with an interest-free overdraft, but overdraft limits vary between providers. In 2024, accounts from NatWest and Royal Bank of Scotland offer some of the most generous interest-free overdrafts for students with an allowance of up to £2,000 available in the first two years of study.

Alternatively, regular train users may prefer the Santander Edge Student Current Account that comes with a free 16-25 railcard for four years, alongside other perks.

Meanwhile, Nationwide BS offers a £100 cash incentive on its FlexStudent Account, as well as £120 worth of Just Eat vouchers.

Ultimately, it’s up to you to work out which student bank account is best for you, taking into consideration its features, perks and terms. See our article for more information on the perks you can get with some of the top student accounts in 2024.