Student Current Accounts

Student current accounts are an essential accessory for anyone heading off to university. Even if you don’t think you’ll get a part-time job or student loan, you’ll need somewhere to hold your money, especially given the ease of contactless and the various budgeting options on offer, it’s easy to see why you’d want a student bank account if you don’t already have one.

Not only can these accounts offer great deals on railway travel or other attractive bonuses, they usually come with low or even no overdraft charges. That means that if you end up spending a bit more than you have in your bank account, you won’t have to worry interest adding to your debt.

Having an overdraft facility is an essential most students look for in a bank account. While the majority of student bank accounts offer an overdraft facility there are a number that stand-out as offering the best student bank accounts for overdrafts. When looking at the best overdrafts it is important to note that we have looked at the full term and not just the first year. Nationwide Building Society’s FlexStudent – Funded offers an interest-free overdraft of up to £ £3,000, while HSBC’s Student Bank Account also offers an interest-free overdraft limit of £ £3,000. Another bank that offers an interest-free overdraft of £ £3,000 is Barclays Bank with its Student Additions. NatWest’s Student Current Account and RBS’ Student Current Account both offer a slightly lower interest-free overdraft limit of £2,000, but which are still some of the best student accounts with overdrafts currently available.

Along with an interest-free overdraft, a number of student accounts also offer incentives that are designed specifically with student needs in mind. Santander’s 123 Student Current Account, for example, offers a free 16-25 Railcard for new customers, which is valid for four years and saves students up to one third on most rail fares, making this account a great choice for students who regularly travel by train. Alternatively, RBS’ and NatWest’ Student Current Account both offer students the choice of the following offers – one-year free membership to Amazon Prime Student and £10 Amazon.co.uk gift card or National Express Coachcard which is valid for four years and gives 1/3 off fares plus 15% off travel to events and festivals, or a tastecard which is valid for four years and gives 50% off food, or 2 for 1 meals plus savings on entertainment. 

After your course is finished and a certain amount of time has passed (this varies between providers), your account will be automatically changed into either a ‘normal’ current account or a graduate account. A graduate account would be the preferred choice here, as it means you will have a little longer to get back into the black, with most graduate accounts decreasing your 0% overdraft amount gradually over time.

Just as you can move to another student account if you find a better deal, you don’t have to stay with the same provider when your student account changes over. In fact, it’s a good idea to look around when you’re nearing the end of your studies, to try and find the best graduate account out there for your needs. Or, if you’re planning to continue your studies, you could opt for a specific postgraduate account instead.