Student Bank Account offers, are they more appealing now?

Did you know as a student you can get a specific bank account? These bespoke accounts are simply made for those in higher education. You can pay money in and out and they can offer additional benefits such as an interest-free overdraft.

How can you get a student bank account?

With all bank accounts you need to apply. Ideally within a branch is the easiest. Just remember to take with you proof of address and identification. Accepted items are current bank statement or utility bill, Driving Licence/Passport. In addition, you will need your UCAS code or confirmation letter of offer. If you have a conditional offer you will need to show A-Level results that meet the condition. As soon as you have these you can open an account.

Once you’ve opened a new student account, remember to update your Student Finance body, letting them know your new bank account details (you can do it online).

Things to look out for

1. Beware of the student bank account freebies.

Offers can include free products, travel discounts, cash rewards and “exclusive” deals. These may all seem tempting but you need to be smart. A student bank account offering a freebie worth £20 might not help you as much as a larger interest free overdraft for three years or more.

2. Go for the largest student overdraft

An arranged overdraft is a common way of borrowing money through your current account. The best thing about student bank accounts are that money borrowed through an overdraft has 0% interest. With an interest free overdraft, you pay back no more than you borrow. This is unique to student bank accounts.

Beware that the 0% period is not forever!  It only lasts a certain number of years – this time frame is set out in the terms when you apply for the account.

3. Know the repayment conditions

You need to read the terms and the conditions for any overdraft and ensure they meet your requirements. You will not have to repay your overdraft for a while after you graduate but ensure you know when these payments are due to start. Plan for your repayment – do not treat it as free money. If you do not understand your terms and conditions ask the bank to explain them to you.

4. Know your credit rating

Student account overdrafts are a form of borrowing, so you will be credit scored when applying. The quality of your score can determine how much overdraft you are offered. You can raise your chances of approval by knowing your own credit score and taking steps to improve it. Have a look at Clear Score or Experian to see where your score is currently.

Which banks offer student accounts?

In the past the big banks offer student accounts such as Santander, HSBC UK, Nationwide, NatWest, Halifax, Lloyds Bank, Barclays and TSB.

Current offers we have found out:

NatWest – Open a NatWest Student bank account and receive £100 and a free 4 year tastecard worth £55.00 per year* Annual tastecard value excluding any offers. Correct as of May 2024. More about this offer can be found here.

Santander – The Santander Edge* student account gives a definite £1,500 0% overdraft in years one to three, provided you register for online banking and pay in £500+ every four months. You can also claim a free four-year 16-25 Railcard (worth £100) which gets you a third off many rail tickets – though it’s not valid in Northern Ireland.

Nationwide – The Nationwide FlexStudent account gives a guaranteed £1,000 0% overdraft in the first year (as long as you’re approved for an overdraft)  – after the first year you can request for it to be increased to £2,000, then after your second year to £3,000. The higher limits depend on your credit record, and while you are likely to get them if your accounts in good standing, it’s not guaranteed. You also get £100 free cash and a £10 Just Eat voucher every month for a year. 

HSBC – The HSBC student account gives a guaranteed £1,000 0% overdraft in the first year, though how much you’ll get in later years depends on your credit record and you’ll need to ask for the increases.

Lloyds Bank – Offering an arranged overdraft, option to earn interest, cash back at certain places, free access to mobile app with a save the change option. More information click here.

All these accounts are subject to terms and conditions. All the links within the offers will take you directly to the bank’s websites on to their student pages so take a look and ask the bank directly any questions, if you have any.

If you need any help or support with university, please do contact us. Additionally, check out our LinkedIn for up-to-date job posts.