Student Bank Account offers, are they more appealing now?

Did you know as a student you can get a specific Student 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?

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 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, and Barclays.

Current offers we have found out:

Nationwide – The Nationwide FlexStudent account offers Interest-free arranged overdraft
Apply to borrow up to £1,000 in your first year, £2,000 in your second year and £3,000 in your third year. Over 600 branches across the UK, Save while you study their student bank account gives you access to their exclusive regular savings account. No Nationwide fees for spending abroad they won’t charge you for using your debit card while on holiday. You could get a Fairer Share Payment Save and bank with nationwide and you could enjoy a Fairer Share Payment. For 3 years, they have given £100 to eligible members. Terms apply.

NatWest – Open a NatWest Student bank account and receive £85 and a free 4 year tastecard. An annual tastecard, worth £79.99 per year*. Interest-free overdraft – get an overdraft of up to £2,000 from year one (limited to £500 in term one, year one), with an instant online decision. Students can apply for up to £3,250 interest free from year three onwards. No monthly Student current account fees. There are no ongoing fees for managing your Student bank account. Easily managed through our app. Stay on top of a Student bank account from the palm of your hand.

Lloyds Bank – Student Current Account £100 cash and up to £90 in Deliveroo vouchers, you can apply for an interest free arranged overdraft of up to £1,500 in years 1 to 3 and then up to £2,000 in years 4 to 6, Earn cashback at some of your favourite places, Free everyday banking when you stay in credit. Other fees may apply, for example using your Visa debit card outside the UK.

Santander – The Santander Edge* Free 4-year Santander 16-25 Railcard worth £115 Saving you 1/3 on rail travel in Great Britain, Interest-free arranged overdraft – An interest-free arranged overdraft of £1,500 in years 1-3 and up to £2,000 by year 5. Secure Mobile Banking Freeze your card, block online transactions, view your PIN or card details and much more with the Santander Boosts – Get cashback, vouchers, prize draws and personalised offers with our free rewards service Travel benefits No fees for using Santander cash machines when you travel.

HSBC – The HSBC student account give you an interest-free arranged overdraft – Get a guaranteed interest-free limit of up to £1,000 when you apply for a Student Account, regardless of what year you’re in, which could rise to £3,000 by year 3. Easy online and mobile banking they have a range of tools to help you manage your money on your mobile. You can also bank online, by phone or in a branch Access their 5.00% AER / gross Regular Saver – Start saving from just £25 a month with our Regular Saver. Save between £25 and £250 a month for a fixed 12-month term. Withdrawal restrictions apply.

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.