Before starting university, it’s a great idea to get all of your finances in order. That includes applying for student finance and finding a decent student bank account. When searching for the latter it can often be overwhelming if you don’t know what to look for, especially when websites pile up all of the facts and figures. To make it easier for you, here’s everything you need to consider when choosing a student account:

What to consider when choosing a bank account

One of the main things to consider is whether or not an overdraft is available. You may not think you need it, but you’d be surprised, even if you aren’t struggling financially an overdraft allows you to make rent payments on time if any issues with student finance occur. 

Next you need to check if the overdraft is interest free, meaning – do you have to pay it back with extra fees on top? Lots of student accounts are interest-free, so I would advise to go for one of these.

Before applying for the account, you will need to check what the requirements are to ensure you meet them. Most accounts will ask for proof of study and that you’re over the age of 18, others may be more niche and only cater for first year student applications (they may not allow transfers if you are already a student with a different bank account.) Check the fine print as there may be some extra stipulations such as a certain amount of money going into the account within a term, make sure you have the finances to do this otherwise your account may get frozen.

Saving account options:

Nationwide FlexStudent Account

According to the official Nationwide site, to apply for this specific account you must:

• be 18 or over
• have been a UK resident for 3 or more years
• not have another student bank account (if you do, you could move this to Nationwide)
• have an unconditional offer or a confirmed conditional place on a full-time UCAS course of at least 2 years
• be starting your course at a UK institution in 5 months or less, or have been on your course for less than 12 months
• pay in at least £500 per term from the date the account is opened (this can be with your student loan.)

The benefits of this account are that you can apply for an ‘interest-free’ arranged 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. Usually, the higher the overdraft the better – but remember you will have to pay it off at some point!

Santander 123 Student Account

This account is one I have personal experience with, the biggest selling factor for me was the free 4-year Santander 16-25 Railcard (which if you were to purchase would be worth £100!) The railcard also allows you to save up to 1/3 on rail travel in Great Britain additionally. 

The account also has an interest-free arranged overdraft of £1,500 in years 1-3 and up to £2,000 by year 5. 

The requirements on the site include that:

• You’re 18 or over and live in the UK permanently
• You’re about to begin or have started an undergraduate course or a level 4-7 apprenticeship, that is at least 2 years in length. If you’re about to begin your course, you must have an ‘unconditional’ or ‘confirmed conditional’ offer (i.e. you have your exam results) before you apply
• You pay in at least £500 into your account every 4 months
• If you already have a Santander current account, you'll need to transfer it
• This is a paper-free account – learn more in ‘Key documents and account information'
• You'll need proof of study to apply

HSBC Student Account

With HSBC you get a “guaranteed” interest-free limit of up to £1,000 when you apply for a Student Account, regardless of what year you're in. This amount could rise to £3,000 by year 3 if you stick with the account. 

The only requirements are that you must:

• Be 18 or over
• Live in the UK and have lived in the UK, Channel Islands or Isle of Man for the past 3 years
• Have proof you've been accepted onto a qualifying course (eg your 16-digit UCAS code)
• Have read the important account documents below
• If you're returning to do a postgraduate or secondary degree of 1 year or more at a UK university, you must have completed an undergraduate course in the last 3 years.

HSBC also has an option for international students too which is a separate account.

Halifax Student Account

The benefits of this account include an interest-free arranged overdraft of up to £1500 for the duration of your course (and 3 years after you graduate – which is a big bonus!) You also get paid an interest rate of 0.50% AER into your account. Depending on where you shop you can receive up to 15% cashback with some retailers too.

There aren’t as many requirements to set up an account with Halifax, to choose this account you must have:

• Your 4-digit UCAS code confirming your place for your course.
• Proof of identity (driving license/passport)
• Proof of address

Lloyd’s Student Account

Lloyd’s allows you to apply for an interest free arranged overdraft of up to £1,500 in your first to third year of studying and then up to £2,000 in years 4 – 6. If your bank balance lies between £1 and £5,000 then you can receive credit interest of 2.00% AER. Like with some of the other accounts, cashback is also available with Lloyd’s at 15%.

The requirements are:

• You're aged 17 or over
• You’re studying full-time on a course of at least two years’ duration, or a one-year full-time access course leading to a degree
• You have been a resident in the UK for at least three years
• You have a university place confirmed
• You're already a student, you can still apply for a student account

Starling Bank 

Doesn’t have a dedicated student account but has become well-known for its low fees and large overdraft facilities. Starling also has a 24/7 chatbot customer support and is one of the best banks for foreign currency exchange rates. This could be a great bank for international students that are not able to apply for UK student bank accounts.

Overall it depends on what your needs are – you may need a larger overdraft, or maybe the free railcard appeals to you if you are moving far from home – but always make sure to do your research before signing up for a bank account to discover the best perks!

Now that you have seen your student bank account options, find out how else you can minimise your spending.