What Do You Need to Open a Student Bank Account
Choosing the correct educatee bank account tin can be tricky... but not with our detailed comparison on what all the banks take to offer students in 2021/22!
Looking to open a student bank account but non certain which bank to go with or how to employ? Well, you're in the right identify!
Starting time, we'll accept yous through the important things to wait out for when choosing a bank, then review and compare the best educatee accounts this year in a articulate comparison table.
What is a student business relationship?
A student bank account is designed exclusively for academy students. They are based on the standard accounts offered by banks, however, students are also treated to benefits including freebies and involvement-free overdrafts.
Yous will need to prove your student condition when opening your account – something nosotros'll come up to later in the guide.
v tips for choosing a top student depository financial institution account
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Beware of the educatee bank account "freebies"
There's plenty on offer this year, but don't be seduced by freebies! Offers including free products, travel discounts, greenbacks rewards and other "exclusive" deals may audio tempting merely yous need to be smart.
A student bank account offering a freebie worth £20 is pitiful compared to a large interest-complimentary overdraft for three years or more...
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Get for the largest student overdraft
An arranged overdraft is a common fashion of borrowing coin through your electric current account. The best thing about student banking company accounts is that money borrowed through an overdraft has 0% interest. With an involvement-gratuitous overdraft, you pay back nothing more than what yous borrow. This is unique to educatee banking company accounts, and then accept full reward of it!
Even if you lot don't experience like you lot demand the full overdraft, still apply for it then take some of it out (interest-costless) to pump up your savings account.
Now you're playing the system! You really make money past earning involvement on the borrowed money whilst yous're a student. We're not talking mega-bucks merely, for something so piece of cake to do, it'due south non a bad render.
Beware that the 0% interest menses is non forever! It only lasts a certain number of years later you graduate before interest charges set in. You'll demand to begin paying up earlier you commencement getting screwed by higher repayments.
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Is the overdraft 'upwardly to' or 'guaranteed'?
The advertised student 0% interest overdraft is often the maximum they offer (hence the "upwards to" wording). For many banks, this amount is but bachelor in your final year at academy and simply to students with a decent credit rating (meet below).
Our comparing beneath of the best pupil accounts considers the likelihood of you receiving the total corporeality from each depository financial institution.
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Know the repayment weather
Sure, you probably won't take to repay your overdraft until after you graduate, just the sudden demand for £3,000 could be quite a daze!
So, don't treat it equally gratis coin and instead program ahead, which starts with agreement the conditions.
In one case y'all leave uni, well-nigh student bank accounts automatically become a graduate bank account, which deals with repaying your overdraft over a certain period.
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Know your credit rating
Student account overdrafts are a form of borrowing, so you lot'll be credit scored when applying. The quality of your score can determine how much overdraft you'll be offered. You can raise your chances of approving past knowing your ain credit score and taking steps to meliorate information technology.
Start by getting a complimentary credit score from Experian, the largest agency used past banks.
Currently a student? Switch your account to get the best deal! The best pupil accounts modify each twelvemonth, and the banks transfer payments beyond for you.
What exercise you lot demand to open a student bank business relationship?
Luckily, there's non likewise much! Nevertheless, at the least UK students volition be required to prove:
- 1 or 2 forms of photo ID: such equally a passport or driver'south licence
- Proof of address: such as a contempo utility beak or bank statement
- Proof of pupil condition: a alphabetic character of credence from your university, or UCAS offer letter.
Most banks at present allow y'all to apply online for a student bank account, simply you'll still accept to send off supporting documents or take them in to your local branch. Documents must be original copies, not photocopies.
Once you've opened a new educatee business relationship, be sure to update your Educatee Finance torso and permit them know your new banking concern account details (don't worry, you tin can practise it online).
Below are the all-time pupil bank accounts for this twelvemonth, taking into account the interest-gratis overdraft terms and student satisfaction scores from our latest cyberbanking survey.
International student? Click hither for our new guide on banking concern accounts that are open to not-UK students.
Don't accident the overdraft! For easy (and enjoyable) budgeting we highly recommend downloading one of these costless banking apps and transferring money across.
Student bank account reviews
HSBC Student Banking concern Account
0% overdraft
Up to £3,000.
- Year 1: £1,000
- Twelvemonth ii: £2,000
- Twelvemonth 3: £3,000.
All students tin get £1,000 upon opening an account which can rise to £3,000 in your tertiary year making it one of the largest educatee account overdrafts on offer.
Sign-up incentive
Students that signed upwardly before 31st December 2021 got an £80 cash incentive likewise as a option between a £xx Uber Eats voucher or ASOS Premier Delivery for a year.
However, if you sign upwards at present that will no longer exist available.
Look out for a similar offer potentially returning after in the year.
Our review
HSBC accept a height student bank business relationship option this yr. Not only does information technology come with a big interest-free overdraft merely it commonly boasts the highest value sign up incentives for this year.
Educatee Satisfaction Score: iv.21 out of five
↑ Comparison table
Santander 123 Student Banking concern Account
0% overdraft
Up to £2,000.
- Year ane: £1,500
- Year two: £1,500
- Year 3: £i,500
- Year 4: £i,800
- Year 5: £two,000.
Unlike other banks, almost students do go the full £1,500 overdraft with Santander – only it's still not guaranteed and depends on your credit rating.
To receive the overdraft you must deposit at least £500 per term into the account (i.e. your Maintenance Loan).
Upon opening the business relationship you lot'll exist given a 0% overdraft of £250 which will increase up to £1,500 within your first year. If your course is longer then you can get up to £2,000 by your fifth year.
Sign-up incentive
The four-yr 16–25 Railcard is worth effectually £100 and saves you one-tertiary off all train travel within the Uk.
We take confirmation that current students are also eligible for the Railcard! Simply switch to this account from your current bank.
Tip: Once you receive the free Railcard (usually you receive a code within 60 days of opening your account) yous could switch to another bank offering a larger overdraft 😉
Our review
Santander's advertised overdraft is one-half that of other banks, so why is it our top choice this year?
It'southward really important to think that the overdraft amounts are "up to". So, for example, we believe you're more than likely to go £1,500 out of Santander than HSBC (who advertise £3,000) over the course of your degree.
In this example, the freebie Railcard is good value, saving you the cost of buying information technology and of course the ticket savings for your whole degree thereafter.
Oh, and Santander came top in our student survey this year…
Educatee Satisfaction Score: 4.39 out of 5
↑ Comparison tabular array
NatWest Student Current Account
0% overdraft
Up to £ii,000.
NatWest's 0% overdraft is reasonable at £2,000 and the chances of obtaining it (eventually) are quite high.
The first yr is tiered at £500 in your kickoff term then up to £two,000 in your 2d.
Sign-up incentive
This year NatWest accept two sign upward incentives on offer. Not just tin can yous become £50 greenbacks simply as well a four year Tastecard (worth around £140).
To be eligible you just need to register for online or mobile banking and opt to receive paperless statements inside thirty days of opening the account.
Our review
NatWest once topped our student account table, but in recent years has slipped downwards as other banks increment their 0% overdraft amounts.
Notwithstanding, the freebies this year are some of the best and the tiered overdraft organization can also be a benefit as it stops you from blowing your whole overdraft in the first term!
Bear in heed that, rather than getting a Tastecard, you can go two-for-one meals for much less using Meerkat meals. Then, have that freebie'southward value with a compression of table salt.
Educatee Satisfaction Score: 4.33 out of 5
↑ Comparison table
RBS Educatee Banking concern Business relationship
0% overdraft
Up to £2,000.
Whilst RBS's 0% overdraft has a low ceiling of £two,000 by your tertiary yr, the chances of obtaining it (eventually) are quite high.
The first year is tiered: £500 in your first term to £2,000 in your second.
Exist aware that you must deposit £750 every six months (eg. your maintenance loan) and make at least three monthly transactions to go whatsoever overdraft at all.
Sign-up incentive
Identical to NatWest, yous go two sign up incentives with this account which are £50 cash and a 4 year Tastecard.
A four year Tastecard usually costs most £140 but don't let that sway you as y'all can get ii-for-ane meals for much less using Meerkat meals too.
Our review
RBS used to be more competitive simply take recently slipped downward the table due to lower overdraft amounts.
The freebie choices are pretty proficient and the tiered overdraft system can also be a benefit, every bit it should hateful you tin't blow your whole overdraft in the first term!
Student Satisfaction Score: 4.22 out of 5
↑ Comparison table
Barclays Educatee Additions Account
0% overdraft
Up to £i,500.
- Yr 1: £1,000
- Yr ii: £1,500
- Year 3: £i,500.
Upon opening your account you'll get a £500 overdraft, and from and then on you'll have to ask to increase it.
In the second yr, you and so become up to £ane,500 and this stays the same for the tertiary.
Barclays advertise that students tin become "upwardly to" the corporeality each year just, as with most banks, it's tricky as it's based on your credit score.
Sign-up incentive
This twelvemonth, Barclays is offering a 12-calendar month subscription to Perlego, the online book library.
This freebie is worth £96 (based on an annual subscription on the Perlego site).
Our review
The overdraft is non equally good every bit many other options and is non guaranteed, and the incentive, although non equally proficient equally others on the market, is better than nothing.
They were well-reviewed in our pupil banking survey but, essentially, there's better out there!
Student Satisfaction Score: 4.36 out of v
↑ Comparison table
Halifax Pupil Electric current Account
0% overdraft
Upward to £1,500.
Although Halifax advertises an overdraft of "up to" £i,500 at 0% from your get-go year at uni, you lot're very unlikely to get the total amount.
To increment your overdraft amount you'll need to keep hounding the bank throughout your time at uni, and they'll approximate applications on a case-past-case basis.
Aside from your abilities to persuade them, the amount you become will depend upon your credit history (check yours for costless) and spending habits.
Our review
According to reports from students who've banked with Halifax, getting your mitts on the maximum £1,500 0% overdraft is harder than resisting the temptation of spending your whole Student Loan in a week.
Halifax's student banking company account also lacks whatever course of notable freebie. Although this is disappointing, it does offer cashback with sure stores.
Educatee Satisfaction Score: 4.27 out of 5
↑ Comparison table
Lloyds Student Current Account
0% overdraft
Upward to £2,000.
In the first twelvemonth, the 0% overdraft limit is tiered: £500 for the first six months; £one,000 in months 7 to nine; and £1,500 beyond that.
With a maximum of £1,500 (or £ii,000 if you study for four to vi years), Lloyds aren't the most generous – still, most students will go the full amount subsequently the first year.
Sign-up incentive
In the past, Lloyds has offered a free TOTUM carte du jour with its student business relationship. However, this year, there's no indication that it'll be offered once again.
Keep an eye on this page to see if it does come up back.
Our review
In recent years Lloyds had a public suspension-up with TSB, so there's a new student account for both.
If you have a poor credit score (check for free), Lloyds are a good choice since a high proportion of applicants receive the full overdraft. The tiered overdraft system can also assistance with budgeting your money over the year.
Educatee Satisfaction Score: 4.22 out of 5
↑ Comparing tabular array
TSB Student Bank Account
0% overdraft
Up to £1,500.
The TSB 0% overdraft is tiered in the first year: £500 for the first six months; £i,000 in months seven to nine; and upward to £one,500 thereafter.
Y'all'll need to apply and badger them to bump up your limit just, depending on your credit score, you have a relatively good take chances of receiving the full advertised amount by the second year.
Our review
Bated from earning 5% involvement on balances up to £500 (£25 a year), at that place'south not as well much going for this student account.
Student Satisfaction Score: 4.33 out of 5
↑ Comparing table
The Co-operative Student Bank Account
0% overdraft
Up to £2,000.
- Twelvemonth 1: £i,400
- Year 2: £i,700
- Year 3: £2,000
To be eligible for the total corporeality you must eolith £300 inside 28 days of opening the account, and that corporeality must stay in there for at least 48 hours afterwards (in other words, yous tin't merely transfer the money in and out straight away). As with all accounts, y'all'll too need to pass a credit history bank check.
You as well have to enquire the banking company for the increase each twelvemonth.
Our review
Despite a distinct lack of freebies, the great news here is that, in the past, a high number of students have reported getting the full advertised overdraft amounts with Co-op. Just make sure to spend it responsibly.
Co-op is also a popular option among students as the bank has a reputation for decent customer service.
Student Satisfaction Score:Due north/A (Co-op's account wasn't open to new customers for a couple of years, and then we excluded information technology from our survey)
↑ Comparing table
Nationwide FlexStudent Business relationship
0% overdraft
Upwardly to £3,000.
- Year i: £ane,000
- Year 2: £2,000
- Year iii: £3,000.
One of the best student bank business relationship overdrafts advertised this twelvemonth. Nationwide take informed us that if you lot are accepted for the account you will exist able to get the full overdraft guaranteed.
You should receive up to £ane,000 in yr 1 and £3,000 in year three equally long every bit you deposit £500 a term and keep a healthy account.
There is no sign-upwardly incentive though, unfortunately.
Our review
After only a few years of offer a student account, Nationwide accept speedily get a student favourite.
In that location's no sign-up incentive but the overdraft on offer is one of the largest (and the only one that'southward fully guaranteed).
Just be warned that yous tin but utilize for the account five months or less before your course starts, or inside two months of starting.
Pupil Satisfaction Score: 4.34 out of 5
↑ Comparison table
International students
If you are a educatee coming to the United kingdom to study, unfortunately you won't be eligible for an overdraft and about of the added benefits that come up with the educatee banking company accounts reviewed above.
Assuming y'all are living in the Britain for more than six months, you tin can apply for a basic current business relationship with near UK banks. Otherwise, you may be ameliorate off with a prepaid card.
We've reviewed the United kingdom international student bank accounts in our new guide. About of these accounts don't charge a subscription fee and allow yous to brand greenbacks withdrawals and card payments.
When applying yous will need:
- Current passport
- Valid visa
- Student ID or acceptance letter
- Home bank argument
- Proof of address in the UK.
Converting currency into your UK bank account? Avert high bank charges past using Wise.
Postgraduate depository financial institution accounts
It used to be that banks had specific accounts for postgraduate students, but now, in most cases, postgraduates can either apply for (or switch to) a normal student bank business relationship or extend a pupil account already held.
To be eligible you will need to be on a recognised principal'southward or doctorate (PhD) class at a British university. You should also exist enlightened that some student accounts are only available to full-fourth dimension students, and so if you're on a part-fourth dimension postgraduate class, yous may have to make do with a normal current account.
Substantially, the message is speak to your current depository financial institution first to run into what they're willing to offering. If that doesn't prove fruitful, work through the banks above to see if you can switch on to another pupil account.
If you don't take any action, your student account is likely to morph into a graduate depository financial institution business relationship.
Why exercise banks love students?
Banks are actively targeting students with big incentives for good reason.
Students are essentially investing in themselves to (hopefully) get a college than boilerplate salary when they graduate.
Whilst you may exist borrowing now to fund your education, banks await you to reap the rewards so they're 'cyberbanking' on you lot to get a valuable long-term customer.
Banks are looking to plant loyalty, and have skillful odds at keeping you for life one time you've opened a student banking concern account with them.
Just remember that you don't accept to be loyal, and you should switch banks to benefit from the next best bargain. Information technology may seem like too much effort, but switching can pay dividends for many students and graduates.
FREE £10: Simply sign up to the online banking app, Bend.
Come across what students had to say about their banks in our latest student cyberbanking survey.
Source: https://www.savethestudent.org/money/student-banking/student-bank-accounts.html
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