Student Bank Account offers, are they more appealing now?

Did you know as a student you can get a specific bank account? You can pay money in and out and they can offer additional benefits such as an interest-free overdraft.


How can you get one?

As 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. So Current bank statement or utility bill, Driving Licence/Passport. In addition, you will need your UCAS code or confirmation letter with an unconditional offer or, if your offers conditional – 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 and let 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 back 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 is 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 make sure you know when these payments are due to start. Plan and do not treat it as free money. If you do not understand your terms and conditions as 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 will 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 that offer student accounts such as Santander, HSBC UK, Nationwide, NatWest, Halifax, Lloyds Bank, Barclays and TSB.

Current offers we have found out:

HSBC – offering an interest free arranged overdraft, easy online and mobile banking with access to their 5% gross regular saver. For more info about this offer click here

NatWest – offering an interest free overdraft, no monthly student current account fees and an offer of a FREE Tastecard for 4 years which is worth £29.99 a year*. For more info about this offer click here.

Barclays – Offering you to apply for their interest free overdraft, no hidden charges for student banking, access to their app to help you keep tabs on your spending and bills. In 2023 they also offered a 12-month subscription to Perlego’s online library of books, academic texts and tools T&C’s apply. 2024 offers are yet to be disclosed but for more information click here.

Nationwide – Offering you to apply for their interest free arranged overdraft, banking app access, auto upgrade to FlexGraduate account on completion of your course, access to apply for exclusive savings accounts. For more information click here.

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.

Additionally, 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 to contact us. Additionally, check out our LinkedIn for up-to-date job posts.