UK Students

Student bank accounts

Student bank accounts are like current accounts but tend to offer beneficial rates and terms to students in higher education. To open a student bank account you usually need to be over 18 and studying on a full-time degree course. How long you have been resident in the UK will also be taken into consideration but this varies from bank to bank.

You should open a student bank account as soon as possible. Often you can do this prior to starting university by using your UCAS letter.

Overdrafts

An overdraft allows you to withdraw more money than you have paid into your account - the bank allows you to borrow money from them when your money has run out.

A benefit of most student accounts is that the bank will not charge you for borrowing this money and will offer you an authorised and agreed interest-free overdraft limit.

Shop around

Student bank accounts are a very competitive business. Banks will try and compete for your business by offering freebies such as Young Persons Railcards and discount cards. These should not be your priority when choosing an account. Most students find the interest-free overdraft facility is more useful throughout their time at university.

Some things to remember:

  • Never exceed your agreed overdraft limit - you will be charged.
  • Always check what the interest rate and other charges are if you do exceed your agreed overdraft limit.
  • Never borrow more money that you need  - you will need to repay your overdraft once you have graduated
  • Find out when you will need to start paying off your overdraft - some student bank accounts will require to you pay off your overdraft soon after graduation, others will let you keep your interest free overdraft for a year after graduation.
  • The way in which you manage your overdraft as a student will affect your credit rating. 

You should consider looking for the bank that will give you the biggest interest free overdraft for the longest period of time.

Compare accounts

To find the best bank account for you, you could start by looking at the following comparison sites: