Finding the right student bank account is crucial to properly managing your finances at university. Moreover, these accounts can offer great perks such as 0% overdrafts, 4-year railcards and credit interest.
So what exactly is a student bank account?
Student bank accounts are quite simply bank accounts made for those in higher education. Furthermore, they offer great perks and rewards because banks are trying to establish loyalty. Once you have opened your student bank account the odds are the bank will keep you for life. However, make sure when you graduate you continue to find the best bank account available for you. Handily, most of the banks that offer student accounts are also part of the current account switch service (CASS) so you can easily switch your existing bank account over.
How do I open a student bank account?
To open a student bank account you will first need a UCAS confirmation letter which proves you have been accepted into a university course. And secondly, as with all bank accounts; you’ll need proof of address and identity e.g. passport, birth certificate or current UK driving license.
Our top student bank account picks…
This account guarantees a £1,500 0% overdraft in years 1 to 3 of university. Not only this, you’ll also be entitled to a free 4-year 16-25 railcard. It’s worth around £100 and can get you a third off rail travel. This is especially ideal for students who rely on the train to transfer between home and university at the start and end of each term.
If you are lucky enough to be in credit you will also receive 1% AER interest up to £2,000. However, to get all of this you will need to register for online banking and pay in £500/term.
However, if you think being in credit is a distant dream then I would definitely advise you to consider the Nationwide FlexStudent Account below.
2. Nationwide FlexStudent Account
This student account offers £1,000 0% overdraft in year one, £2,000 in year 2 and £3,000 in year 3. But, you’ll also have to pay in at least £500/term. We think this is a fantastic overdraft which will certainly help you avoid unnecessary interest payments.
Unfortunately, if you do find yourself in credit, this account offers no interest. For better interest rates I would suggest opting for the Santander 123 student account.
Other Student Bank Accounts to Consider…
Account Provider 0% Overdraft Credit Interest Perks TSB Up to £1,500 5% AER up to £500 None Bank of Scotland Up to £1,500 in years 1-3 and up to £2,000 in years 4-6 None Earn up to 15% cashback Barclays Up to £500 during account opening and term 1 then in…
Year 1 – up to £1,000
Year 2 – up to £2,000
Year 3 and beyond – up to £3,000
None Free 12-month subscription to Perlego Halifax Up to £1,500 0.1% AER Earn up to 15% cashback NatWest £500 in term 1, then up to £2,000 None 1 from 3; Amazon Prime Student membership, National Express Coachcard or a tastecard