Choosing your student bank account 1

If you are off to uni this year, one of the things you might like to consider - and you might never have thought of before - is opening a student bank account. 

Compared to the bank account that you might already have, student bank accounts often offer you a number of benefits, such as a free railcard, alongside a student overdraft. You can only have one student account open at a time. 

You might also be able to receive a credit card alongside your debit card, which is great if you have to book train fares or if you are thinking of going on holiday, and if you can show that you can manage your money sensibly it will do wonders to your credit rating. 

To apply for a student bank account you'll need to have been a resident in the UK for the last 3 years. You'll also need to confirm that you are a student, either through your UCAS confirmation of place letter (usually issued after your A Level or Higher results during August) along with your UCAS Track profile once your place is confirmed. If you don’t have this, a letter from your university or college confirming your place is good. You'll also need proof of your identity, such as a passport or driver’s license. Once your account is opened, you'll also have to deposit some money into it. 

Here are some of the top student bank accounts currently out there, along with their perks: 

HSBC

Benefits - £80 plus your choice on a £20 Uber Eats voucher or a year of unlimited next-day delivery with ASOS premier.

0% Overdraft - An automatic overdraft of at least £1,000 and a maximum overdraft of £3,000 (the biggest out there!), however, this is judged on a case-by-case basis and it’s often only up to £1,000 by the end of the year. 

Credit card - With up to £500 credit available.

Unarranged overdraft fee - None.

Overdraft setup fee - None.

Eligibility - You cannot open or switch to this account if you're past your first year of study. You can only apply if you've got an unconditional place at university, or you're already a student. You need to have been a resident of the UK or the Channel Islands for the last 3 years. You can also take out an HSBC student bank account if you are starting an apprenticeship. 

Overdraft interest - All debit balances are free from overdraft interest if you stay under the arranged overdraft limit.

Get it - If you think you'll get the £3,000 and you need it, or you think you'll have a decent sum of money in your current account so you can save yourself a bit of money along the way. 

For more information, see https://www.hsbc.co.uk/current-accounts/products/student.

Bank of Scotland

Benefits - Everyday Offers lets you earn up to 15% cashback using offers at the places you regularly shop. Their app also lets you organise your money, so you know where you are spending it, while text alerts tell you when you are running low. You also get a free Tutom discount card.

0% overdraft - Overdraft of up to £1,500. In your first year of study you could get up to £500 for the first six months, and up to £1,000 in months seven to nine. From month 10 until the end of your third year you can get up to £1,500. If you’re studying on a course that is longer than three years, you can request to increase it to £2,000 from year four onwards, should you need it.

Eligibility - Studying for a full-time course that lasts for a minimum of two years or be on a one-year access course leading onto a full-time degree.

Unarranged overdraft fee - 1p a day for every £7 that you borrow.

Get it - If you want to keep track of your money and work out where it's being spent. 

See https://www.bankofscotland.co.uk/bankaccounts/compare-current-accounts/student-account.html for more information.

Lloyds bank

Benefits - A free Totum discount card, 10% off at the Co-op, 25% off at ODEON student-priced tickets, plus discounts from Apple, 16-25 Railcard, LOOKFANTASTIC, Superdrug, New Look, Jack Wills, Zavvi, PizzaExpreess, ASOS, CrossCountry Trains, Missguided, Domino's, Thorpe Park and lots more.

0% overdraft - Overdraft of up to £1,500. In years 1-3 your and up to £2000 in years 4-6.

Eligibility - Can apply if you're studying full-time on a course of at least two years' duration, or one-year full-time access course leading to a degree and you've been a resident in the UK for at least three years. you can apply as soon as your place at university is confirmed.

Unarranged overdraft fee - None

Get it - If you tend to shop a lot at any of those stores listed above.

For more information, see https://www.lloydsbank.com/current-accounts/all-accounts/student-account.html.

Natwest & RBS

Benefits - £50 cash paid into your account within 10 working days of meeting the offer criteria. To receive your, register for mobile or Online Banking and choose to receive paperless statements within 30 days of opening your account, BUT this is only available until 5th November and can be withdrawn at anytime as it has limited availability. Also, offers a get a 2 for 1 or 50% off your food bill at thousands of UK restaurants and discounts at the cinema with the tastecard membership.

0% overdraft - Up to £500 in your first term and £2000 after your first term.  

Eligibility - To apply, you must be living in the UK and either completing a full-time undergraduate course that lasts at least 2 years, a full-time post-graduate course, or training as a nurse at a UK university or college of higher education.

Overdraft usage fee - None

Overdraft fee - No unarranged or arranged overdraft usage fees

Interest - No interest paid if you are in credit. 

Get it - If you want the £50 paid to your new account but be quick and if you tend to go out for food and movies often with your friends.

For more information, see  https://www.rbs.co.uk/current-accounts/student_account.html and https://www.natwest.com/current-accounts/student_account.html.

Choosing your student bank account 2

Ulster bank

Benefits - commission-free travel money

0% overdraft - up to £1000 for the majority of students and up to £3000 for certain degrees such as medicine, dentistry, physiotherapy, law, accountancy and pharmacy. 

Credit card - with a credit limit of £350.

Eligibility - UK residents aged 18 or over, in a full-time third level course which lasts at least two and no longer than five years.

Get it - if you think you are going to be spending your student years jet setting!

For more information, see https://www.ulsterbank.co.uk/current-accounts/student-account.html.

Santander

Benefits - Santander offers a free 4-year 16-25 Railcard, worth about £100, which saves you a third off rail travel in the UK. 

0% Overdraft - Up to £1,500 in years 1-3, then up to £2,000 if you stay on to year 5. 

Arranged overdraft set up fee - £0

Unarranged overdraft usage fee - none

Eligibility - Ensure you don't already have an existing Santander current account and if you do you'll need to transfer it. You also need to pay at least £500 per academic term. This account is also available to apprentices studying at levels 4-7.

Get it - If you are likely to remain in credit and travel a lot by train as the interest and the railcard add up to a lot. 

For more information, please see - https://www.santander.co.uk/personal/current-accounts/123-student-current-account

TSB

0% Overdraft - You can receive up to £500 in your first six months and then apply to increase it to £1,000 in months seven to nine and from month ten up to £1,500.

Eligibility - You must be studying for a full-time course that lasts for a minimum of two years or be on a one year access course leading onto a full-time degree.

Interest - 5% AER interest on balances up to £500.

Arranged overdraft set up fee - £0

Unarranged overdraft usage fee - None

Get it - If you're likely to be in credit by a small amount and would like to benefit from the interest paid on this balance.

For more information, please see - https://www.tsb.co.uk/current-accounts/student-bank-account/

Barclays

Benefits - Unlimited access to over 600,000 textbooks with Perlego. Free for 12 months, saving you £96.

0% Overdraft - You can apply for a £500 overdraft when you open your account, which you can increase up to £1,500.

Eligibility - Studying for an undergraduate qualification for at least 2 academic years full time or post-graduate for 1 year or more

Unarranged overdraft usage fee - none

Get it - to save your cash on those hefty textbooks. 

For more information, please see - https://www.barclays.co.uk/current-accounts/student-account/

 

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