Student Current Accounts

A guide to student bank accounts

A student bank account is a type of current account that’s exclusively available to those in higher education. It lets you keep your money in one safe place while still being able to spend it and add to it at any time.

Like normal current accounts, some will offer an arranged overdraft facility. This is a means of borrowing money using your account. While most current accounts charge interest on the amount borrowed, student bank accounts tend to come with low or even no overdraft charges.

Some student bank accounts will even offer incentives to try and entice new customers. However, make sure to consider all aspects of an account before applying, not just the freebies.

While you don’t need a student bank account specifically, you will need a bank account for your maintenance loan to be paid into. If you choose not to have a student account, you may be missing out on any incentives or interest-free overdraft facilities being offered.

A low or interest-free overdraft facility is an essential many students look for in a bank account. Although most student bank accounts come with an overdraft facility, there are a number that stand out. As of 2023, student accounts from HSBC and Nationwide BS offer some of the most generous overdraft allowances.

With both HSBC’s Student Bank Account and Nationwide BS’s FlexStudent account, you can apply for an interest-free overdraft of up to £1,000 in your first year, up to £2,000 in your second year and up to £3,000 in your third year.

Providers may offer perks in order to entice students to apply for their bank account. These incentives can range from free, upfront cashback to subscriptions to apps and discount cards. Ultimately, the best student bank account for incentives will depend on which of these freebies you’ll find most useful.

If you’re looking for free cashback, as of 2023, HSBC offers £100 for opening its student bank account. In addition to this, its Student Bank Account also includes a one-year subscription the mindfulness app, Headspace.

Meanwhile, Santander renewed its longstanding perk of a four-year 16-25 railcard for another year. The railcard saves you a third off a wide range of train journeys throughout Great Britain. Visit our article on the top student bank account perks of 2023 for more detail on some of these offers.