The best student bank accounts in 2024/25

As you move on to higher education, choosing the best student bank account for your needs is an important step. While many people simply stick with the bank they used as a child, moving to the student version of their existing current and savings accounts, it pays to compare what other accounts are available and the benefits they can offer.

Before opening a student account, you should carefully consider where you are going to store your tuition and/or maintenance loans, what you can expect in terms of arranged and unarranged overdrafts, and any perks or extra features you could receive.

Getting your finances in order is important if you are going to make sure you don't finish your studies with large debts that will take years to pay off. In this article, we look at the features you should be looking for from your student bank account and compare some of the best student bank accounts for the 2024/25 academic year.

What is a student bank account?

A student bank account is a special account for those in higher education such as university. Most will offer better overdraft and interest rates than regular accounts and can come with additional incentives, such as free railcards.

However, you need to be aware that banks are not charitable institutions and they know that at the end of your education you will probably still have outstanding overdraft debt and will, therefore, remain with that bank in the future.

The cost of studying is high and the use of an overdraft facility provides a useful safety net but make sure you also maximise your income by taking up some part-time work, particularly during the long holidays, to tide you over in the gaps between your loan instalments.

What do I need to open a student bank account?

To open a student bank account you will need proof of identification - typically a passport or driving licence - and proof of your address. In addition, you will need to show you are eligible for a student account with at least one of the following:

• A UCAS confirmation with an unconditional offer
• A letter showing a conditional offer and proof of A-level results that meet that requirement
• A confirmation letter from the university you will be attending

How to choose the best student account

• Overdraft facility: A fee-free overdraft is often the main attraction of a student bank account. Something to watch out for is whether the overdraft that is advertised is what you will actually be offered. Some will be "up to" a certain level, while others offer a guaranteed amount.
• Perks and freebies: Some bank accounts will offer cash for signing up or a rail card for discounted travel. It's important to consider how these offers stack up against the other features of the account, particularly the overdraft facility. It's almost always better to opt for an account with preferential overdraft arrangements.
• Ease of use: Gone are the days of being tied to a bank with a local branch. A key feature now for any current account is whether it offers good online banking and/or a banking app that allows you to manage your account remotely.

The best student bank accounts

Student bank accounts come with a wide range of overdraft facilities, perks, and unique features. Understanding these will help you to choose the right account for you. In the comparison table below, we compare some of the best student bank accounts.

Bank	Account Name	Arranged Overdraft Cap	Unarranged Overdraft Rate	Cash bonus^	Perks^	Good For
Santander	Santander Edge Student Current Account	£1,500 in years 1-3, £1,800 in year 4, £2,000 in year 5	0%	No	Free 4-year 16-25 railcard to save 1/3 on rail travel (worth £100). Earn cashback and rewards with Santander Boosts. No fees when use Santander cash machines abroad.	Frequent domestic travellers or those making regular long commutes
HSBC	Student Bank Account	£1,000 in year 1, £2,000 in year 2, £3,000 in year 3	0%	Yes	£125 bonus for opening account (terms apply). Access to 5.00% savings account	Those looking to save
Nationwide	FlexStudent Current Account	£1,000 in year 1, £2,000 in year 2, £3,000 in year 3	0%	Yes	£100 cashback. £120 of Just Eat vouchers (£10 per month for the first 12 months). Access to Flex Instant Saver with 3.25% interest. No Nationwide charges to use card abroad.	Those looking for fee-free spending abroad
Barclays	Student Additions Account	£500 in first academic term, £1,000 in year 1, £1,500 in year 2 and beyond	0%	No	Free 3-year subscription to Perlego's online library of books, academic texts and tools. Saving and budgeting features within the app.	Those looking to budget and save
Lloyds Bank	Student Current Account	£1,500 in years 1-3, £2,000 in years 4-6	0%	Yes	£110 bonus when you open an account. Student event discounts at selected Universities. Up to 15% cashback with some retailers. Earn 2.00% interest on account balance (limits apply).	Earning interest on your current account balance
NatWest / RBS	NatWest Student Bank Account RBS Student Bank Account	£2,000 (£500 in the first academic term), Up to £3,250 from year 3 onwards	Max. monthly charge of £1.55 if in unarranged overdraft and try to withdraw more funds	Yes	£100 cash bonus when you open an account. Free 4-year Tastecard.	Frequent diners and cinemagoers with Tastecard's 2-for-1 meals or up to 50% off thousands of UK restaurants plus cinema discounts

^Qualifying terms may apply

Santander - Edge Student Current Account

• Must be 18 or over and living in the UK permanently
• A fee-free arranged overdraft cap of up to £1,500 in years 1-3, £1,800 in year 4, and £2,000 in year 5
• A free 4-year 16-25 railcard to save 1/3 on rail travel fares across the UK
• No fees when use Santander cash machines abroad.
• Cashback and rewards with Santander Boosts
• Must pay in a minimum of £500 every 4 months

HSBC - Student Bank Account

• Must be 18 or over and a resident in the UK for at least 3 years
• Must provide proof of your course place
• A fee-free arranged overdraft cap of up to £1,000 in year 1, £2,000 in year 2, and £3,000 in year 3
• £125 cash bonus for opening account (terms apply)
• Access to 5.00% Regular Saver
• Balance After Bills tool to see how much money you have left after bills and other regular outgoings

Nationwide - FlexStudent Current Account

• Must be aged 18 or over and a UK resident for 3 or more years
• A fee-free arranged overdraft of up to £1,000 in year 1, £2,000 in year 2, and £3,000 in year 3 and beyond
• No Nationwide charges to use card abroad
• Contactless payments plus Apple Pay, Google Pay or Samsung Pay
• Must pay in at least £500 per term from the date the account is opened
• £100 cashback if open account and pay in £500 before 13/12/24
• £120 of Just Eat vouchers (£10 per month for first 12 months) if open account and pay in £500 before 13/12/24
• Access to Flex Instant Saver with 3.25% interest

Barclays - Student Additions Account

• Must be aged 18 or over and a UK resident for at least 3 years
• A fee-free arranged overdraft cap of up to £500 in the first academic term, £1,000 in year 1, £1,500 in year 2 and beyond
• Apple Pay and Google Pay
• Free 3-year subscription to Perlego's online library of books, academic texts and tools
• Use the app to spend, save and budget

Lloyds Bank - Student Current Account

• Must be aged 17 or over and have been a resident in the UK for at least 3 years (Must be 18 or over to apply for overdraft)
• Must be studying on a full-time course for a minimum of 2 years or a one-year full-time access course leading to a degree
• A fee-free arranged overdraft cap of up to £1,500 in years 1-3 (limited to £500 for first 6 months and £1,000 months 7-9) and £2,000 in years 4-6
• Up to 15% cashback and Save the Change round-up function
• £110 cash bonus when you open an account and pay in £500 before the end of October
• Student event discounts at selected Universities
• Contactless, Apple Pay and Google Pay
• Earn up to 2.00% interest on current account balance

NatWest / RBS - Student Bank Account

• Must be aged 17 or over and a resident in the UK for at least 3 years (Must be 18 or over to apply for overdraft)
• Must use your student account as your main account
• A fee-free arranged overdraft cap of up to £2,000 in years 1 and 2 (£500 in first academic term) and up to £3,250 from year 3 onwards
• £100 cash bonus when you open an account
• Free 4-year Tastecard (worth £55 per year)
• Contactless, Apple Pay and Google Pay

Tips for managing your money as a student

Budget, budget, budget

Create a budget before you leave home so that you fully understand your likely income and expenses at university or college. Check out our article "The best budgeting apps in the UK - how to budget without trying" or our money tip #73 to learn how to start ‘big picture’ budgeting.

Additional money-saving tips can be found in our article, 'How to save money as a student'.

Be responsible with your overdraft

Having access to a fee-free overdraft can be a great failsafe, but try to only use it in emergencies, as it is actually a debt and can become a bad money habit. Head to MTTM's podcast episode 282 to find out how to clear your overdraft if you find yourself stuck.

Check the small print

With any student account, you need to make sure you are aware of any additional charges, such as foreign currency transaction fees. Pay close attention to the small print of your contract, as you could end up with hefty fees after your post-exam holidays, and check if there are any limits to how often you can dip into an unarranged overdraft. These things are not necessarily clear without reading your account's terms and conditions.

Move onto a graduate account

It can also be worth considering moving to a graduate account with your provider when you finish your course, as it will typically give you a longer interest-free period to pay off the overdraft you may have accrued during your undergraduate studies, and graduate accounts typically have very generous overdraft limits too.

Check your credit score

You should check your credit rating before applying for any new bank account to make sure your application has the best chance of success. Check out our article "What is a credit score and how do you check it?" for more details and how to go about it.

Make the most of your money

Finally, before you leave the nest, head to our advice on "7 ways to get the most out of your money at university" to set yourself up for a fun - and financially secure - stint in higher education.