If you’re heading off to university later this year, now’s the time to be looking at what student current accounts are on offer. If you’re heading off to university later this year, now’s the time to be looking at what student current accounts are on offer. If you’re heading off to university later this year, now’s the time to be looking at what student current accounts are on offer. If you’re heading off to university later this year, now’s the time to be looking at what student current accounts are on offer.
Every year, student current accounts tend to be offered by the same handful of high street providers.
When ranking the accounts, we looked predominantly at interest-free overdraft limits, then at any welcome freebies on offer or other perks such as cashback or ‘card-free’ cash withdrawals.
These banks are not the only providers offering student accounts, though. You will find details of other in our FAQs, below.
Student bank accounts are current accounts specifically designed for people aged 18 or over in higher education such as university or college.
The main draw for many is the interest-free overdrafts they offer, but to grab freshers’ attention, they offer a range of perks from retailer discounts, railcards, online subscriptions, and even cash.
Typically, high street banks start unveiling their student bank offering during the summer holidays in plenty of time before the start of the new academic year.
It takes a matter of minutes to open an account, so there is time to wait for the full range of deals and compare before making your choice.
Other providers to consider in addition to those we have ranked above, include the Co-operative Bank, Barclays, Halifax and TSB.
While there are no freebies, the Co-operative offers the best 0% overdraft terms of this list at a guaranteed £1,400 in year one; up to £1,700 in year two; and then up to a maximum of £2,000 for the remainder of your time at uni.
The Halifax student account overdraft remains at £1,500 for every year you are at uni.
And, in the potentially unlikely event that you have a credit balance in your account, TSB pays a worthwhile 5% interest on balances up to £500.
Although they offer cool budgeting features with their apps, challenger banks such as Monzo and Revolut don’t offer specific student bank accounts.
Pretty much all student accounts offer a certain amount of overdraft at 0% interest. This can be a lifesaver at uni so it’s a shrewd move to look for the student bank account with the biggest 0% overdraft.
Just note that some banks offer ‘up to’ the limit, so the number you see is not guaranteed. Limits usually increase with each year you’re at uni but you may have to actively request the increase.
Bear in mind that you will be credit checked when applying for an overdraft, so if you have missed or been late with payments in the past – such as for your phone contract – you could be turned down.
It’s worth remembering that, although a bank may describe an overdraft as ‘free’, you will still have to pay it back. Budget the best you can and try not to go overdrawn unless you can help it.
