Best student bank accounts 2022
Choosing the best student bank account for you can be tricky. Our comparison of what the top banks have to offer students in 2022 makes it easy.
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Looking to open a student bank account but not sure which bank to go with, or how to apply? Well, you're in the right place!
First, we'll highlight important things to look for when choosing a bank account. Then we'll review and compare the best student accounts this year in a clear comparison table.
Compare student bank accounts
What is a student account?
A student bank account is designed just for university students. Unlike standard current accounts, students are treated to benefits including freebies and interest-free overdrafts.
You will need to prove your student status when opening an account, something we'll come to later.
Once you've opened a new student account, remember to update your Student Finance body and let them know your new bank account details (you can do it online).
5 tips for choosing a top student bank account
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Beware of the student bank account "freebies"
There's plenty on offer this year, but don't be seduced by freebies! Offers including free products, travel discounts, cash rewards and "exclusive" deals may sound tempting, but you need to be smart.
A student bank account offering a freebie worth £20 is pitiful compared to a large interest-free overdraft for three years or more...
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Go for the largest student overdraft
An arranged overdraft is a common way of borrowing money through your current account. The best thing about student bank accounts is that money borrowed through an overdraft has 0% interest.
With an interest-free overdraft, you pay back nothing more than what you borrow. This is unique to student bank accounts, so take full advantage of it!
Even if you don't need the full overdraft, transfer some of it to a savings account. You can then make money by earning interest on the borrowed money whilst you're a student.
Beware that the 0% interest period is not forever! It only lasts a certain number of years after you graduate before interest charges set in.
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Is the overdraft 'up to' or 'guaranteed'?
The advertised student 0% interest overdraft is usually the maximum they offer (hence the "up to" wording). For many banks, this amount is only available in your final year at university and only to students with a decent credit rating (see below).
Our comparison below of the best student accounts considers the likelihood of you receiving the full amount from each bank.
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Know the repayment conditions
You probably won't have to repay your overdraft for a while after you graduate, but the sudden demand for £3,000 could be quite a shock!
So, don't treat it as free money and plan ahead. This starts with understanding the conditions.
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Know your credit rating
Student account overdrafts are a form of borrowing, so you'll be credit scored when applying. The quality of your score can determine how much overdraft you'll be offered.
Raise your chances of approval by knowing your own credit score and taking steps to improve it.
Start by getting a free credit score from Experian, the largest agency used by banks.
Below are the best student bank accounts for this year. We take into account the interest-free overdraft terms and student satisfaction scores from our latest banking survey.
International student? See bank accounts open to non-UK students.
Student bank accounts 2022 |
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| Bank account | 0% Overdraft | Incentive | Student score | |||
|---|---|---|---|---|---|---|
Santander 123 Student Account |
Up to £2,000 |
4 year Railcard | 87.8% |
Full review |
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NatWest Student Account |
Up to £2,000 |
£80 cash + 4 year Tastecard | 86.4% |
Full review |
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RBS Student Account |
Up to £2,000 |
£80 cash + 4 year Tastecard | 85.2% |
Full review |
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HSBC Student Bank Account |
Up to £3,000 |
£100 cash | 86% |
Full review |
Nationwide FlexStudent |
Up to £3,000 |
£100 cash | 85.4% |
Full review |
Barclays Student Additions |
Up to £1,500 |
12 month Perlego subscription | 85.4% |
Full review |
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Halifax Student Current Account |
Up to £1,500 |
0.10% in-credit interest | 84.4% |
Full review |
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Lloyds Student Account |
Up to £2,000 |
None | 85.2% |
Full review |
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TSB Student Account |
Up to £1,500 |
5% in-credit interest up to £500 |
80.2% |
Full review |
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Co-operative Student Account |
Up to £2,000 |
None | N/A |
Full review |
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| EAR = Equivalent Annual Rate. Ranked by best value. Student scores from 2022 survey. Figures and terms subject to change. Please check bank websites for details. |
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Student bank account reviews
Santander 123 Student Bank Account
0% overdraft
Up to £2,000.
- Year 1: £1,500
- Year 2: £1,500
- Year 3: £1,500
- Year 4: £1,800
- Year 5: £2,000.
Unlike other banks, most students do get the full £1,500 overdraft with Santander. But it’s still not guaranteed and depends on your credit rating.
To receive the overdraft you must deposit at least £500 per term into the account (i.e. your Maintenance Loan).
Upon opening the account you’ll be given a 0% overdraft of £250 which will increase up to £1,500 within your first year. If your course is longer then you can get up to £2,000 by your fifth year.
Sign-up incentive
The four-year 16–25 Railcard is worth around £100 and saves you one-third off all train travel within the UK.
We have confirmation that current students are also eligible for the Railcard! Simply switch to this account from your current bank.
Tip: Once you receive the free Railcard (usually within 60 days) you could switch to another bank offering a larger overdraft.
Our review
Santander’s advertised overdraft is half that of other banks, so why is it so high up our list this year?
It’s really important to remember that the overdraft amounts are “up to”. So, for example, we believe you’re more likely to get £1,500 out of Santander than HSBC (who advertise £3,000) over the course of your degree.
In this case, the freebie Railcard is good value. It saves you the cost of buying it and of course the ticket savings for your whole degree thereafter.
Oh, and Santander came top in our student survey this year…
Student Satisfaction Score: 4.39 out of 5
NatWest Student Current Account
0% overdraft
Up to £2,000.
NatWest’s 0% overdraft is reasonable at £2,000 and the chances of obtaining it (eventually) are quite high.
The first year is tiered at £500 in your first term then up to £2,000 in your second.
Sign-up incentive
This year NatWest have two sign up incentives on offer. Not only can you get £80 cash but also a four year Tastecard (worth around £140).
To be eligible you need to register for online or mobile banking and opt to receive paperless statements within 30 days of opening the account.
Our review
NatWest once topped our student account table, but in recent years has slipped down as other banks increase their 0% overdraft amounts.
Still, the freebies this year are some of the best and the tiered overdraft system can also be a benefit as it stops you from blowing your whole overdraft in the first term!
Bear in mind that, rather than getting a Tastecard, you can get two-for-one meals for much less using Meerkat meals. So, take that freebie’s value with a pinch of salt.
Student Satisfaction Score: 4.32 out of 5
RBS Student Bank Account
0% overdraft
Up to £2,000.
Whilst RBS’s 0% overdraft has a low ceiling of £2,000 by your third year, the chances of obtaining it (eventually) are quite high.
The first year is tiered: £500 in your first term to £2,000 in your second.
Be aware that you must deposit £750 every six months (eg. your maintenance loan) and make at least three monthly transactions to get any overdraft at all.
Sign-up incentive
Identical to NatWest, you get two sign up incentives with this account which are £80 cash and a four year Tastecard.
A four year Tastecard usually costs about £140 but don’t let that sway you as you can get two-for-one meals for much less using Meerkat meals too.
Our review
RBS used to be more competitive but have recently slipped down the table due to lower overdraft amounts.
The freebie choices are pretty good and the tiered overdraft system can also be a benefit, as it should mean you can’t blow your whole overdraft in the first term!
Student Satisfaction Score: 4.26 out of 5
HSBC Student Bank Account
0% overdraft
Up to £3,000.
- Year 1: £1,000
- Year 2: £2,000
- Year 3: £3,000.
One of the largest student account overdrafts on offer. All students can get £1,000 upon opening an account which can rise to £3,000 in your third year.
Sign-up incentive
To get the £100 cash bonus students need to open an HSBC Student Bank account and make 5 debit card transactions within the first 30 days of opening the account.
You must be over 18 years old, on a qualifying course and a UK, Channel Island, or Isle of Man resident for 3 years+ currently residing in the UK.
Once you qualify for the offer you’ll receive your £100 cash into your account within 30 days.
Check the HSBC site for further T&Cs.
Our review
HSBC have a top student bank account option this year. Not only does it come with a large interest-free overdraft, but it boasts the highest value sign up incentive for this year.
The £100 cash will be a no brainer for most students.
Student Satisfaction Score: 4.3 out of 5
Nationwide FlexStudent Account
0% overdraft
Up to £3,000.
- Year 1: £1,000
- Year 2: £2,000
- Year 3: £3,000.
One of the best student bank account overdrafts advertised this year and a great incentive too. Nationwide have informed us that if you are accepted for the account you will be able to get the full overdraft guaranteed.
You should receive up to £1,000 in year one and £3,000 in year three as long as you deposit £500 a term and keep a healthy account.
Sign-up incentive
You must pay in £500+ into your account by the 16th December in order to get your £100 bonus.
It is then paid within 14 days of this.
Check the Nationwide site for further T&Cs.
Our review
After just a few years of offering a student account, Nationwide have quickly become a student favourite.
There’s a top sign-up incentive and the overdraft on offer is one of the largest (and the one that’s most likely to be guaranteed).
Be aware you can only apply for the account five months or less before your course starts, or within two months of starting.
Student Satisfaction Score: 4.27 out of 5
Barclays Student Additions Account
0% overdraft
Up to £1,500.
- Year 1: £1,000
- Year 2: £1,500
- Year 3: £1,500.
Upon opening your account you’ll get a £500 overdraft, and from then on you’ll have to ask to increase it.
In the second year, you then get up to £1,500 and this stays the same for the third.
Barclays advertise that students can get “up to” the amount each year but, as with most banks, it’s tricky as it’s based on your credit score.
Sign-up incentive
This year, Barclays is offering a 12-month subscription to Perlego, the online book library.
This freebie is worth £96 (based on an annual subscription on the Perlego site).
Our review
The overdraft is not as good as many other options and is not guaranteed, and the incentive, although not as good as others on the market, is better than nothing.
They were well-reviewed in our student banking survey but, essentially, there’s better out there!
Student Satisfaction Score: 4.27 out of 5
Halifax Student Current Account
0% overdraft
Up to £1,500.
Although Halifax advertises an overdraft of “up to” £1,500 at 0% from your first year at uni, you’re unlikely to get the total amount.
To increase your overdraft amount you’ll need to keep hounding the bank throughout your time at uni. They’ll judge applications on a case-by-case basis.
Aside from your abilities to persuade them, the amount you get will depend upon your credit history (check yours for free) and spending habits.
Our review
According to reports from students who’ve banked with Halifax, getting your mitts on the maximum £1,500 0% overdraft is harder than resisting the temptation of spending your whole Student Loan in a week.
Halifax’s student bank account also lacks any form of notable freebie. Although this is disappointing, it does offer cashback with certain stores.
Student Satisfaction Score: 4.22 out of 5
Lloyds Student Current Account
0% overdraft
Up to £2,000.
In the first year, the 0% overdraft limit is tiered: £500 for the first six months; £1,000 in months seven to nine; and £1,500 beyond that.
With a maximum of £1,500 (or £2,000 if you study for four to six years), Lloyds aren’t the most generous. However, most students will get the full amount after the first year.
Sign-up incentive
In the past, Lloyds has offered a free TOTUM card with its student account. However, this year, there’s no indication that it’ll be offered again.
Keep an eye on this page to see if it does come back.
Our review
In recent years Lloyds had a public break-up with TSB, so there’s a new student account for both.
If you have a poor credit score (check for free), Lloyds are a good choice since a high proportion of applicants receive the full overdraft. The tiered overdraft system can also help with budgeting your money over the year.
Student Satisfaction Score: 4.26 out of 5
TSB Student Bank Account
0% overdraft
Up to £1,500.
The TSB 0% overdraft is tiered in the first year: £500 for the first six months; £1,000 in months seven to nine; and up to £1,500 thereafter.
You’ll need to apply and badger them to bump up your limit. Depending on your credit score, you have a relatively good chance of receiving the full advertised amount by the second year.
Our review
Aside from earning 5% interest on balances up to £500 (£25 a year), there’s not too much going for this student account.
Student Satisfaction Score: 4.01 out of 5
The Co-operative Student Bank Account
0% overdraft
Up to £2,000.
- Year 1: £1,400
- Year 2: £1,700
- Year 3: £2,000
To be eligible for the full amount you must deposit £300 within 28 days of opening the account. That amount must stay in there for at least 48 hours afterwards (in other words, you can’t just transfer the money in and out straight away). As with all accounts, you’ll also need to pass a credit history check.
You also have to ask the bank for the increase each year.
Our review
Despite a distinct lack of freebies, a high number of students have reported getting the full advertised overdraft amounts with Co-op.
Co-op is also a popular choice among students as the bank has a reputation for decent customer service.
Student Satisfaction Score: N/A (Co-op’s account wasn’t open to new customers for a couple of years, so we excluded it from our survey)
Student bank account FAQs
What do I need to open a student bank account?
As a minimum, UK students will be required to show:
- One or two forms of photo ID: such as a passport or driving licence
- Proof of address: such as a recent utility bill or bank statement
- Proof of student status: a letter of acceptance from your university, or UCAS offer letter.
Why do banks offer student accounts?
Banks are actively targeting students with big incentives for good reason.
Students are essentially investing in themselves to get a higher than average salary when they graduate.
Whilst you may be borrowing now to fund your education, banks expect you to reap the rewards. So they’re ‘banking’ on you to become a valuable long-term customer.
Banks are looking to establish loyalty. They have good odds at keeping you for life once you’ve opened a student bank account with them.
Remember that you don’t have to be loyal. You should switch banks to benefit from the next best deal. It may seem like an effort, but switching can pay dividends for many students and graduates.
Why do I need a student bank account?
A bank account is needed to receive payments from Student Finance, like your maintenance loan.
You don’t necessarily need to have a student-specific bank account. However, student accounts offer students exclusive benefits including an interest-free overdraft facility.
This access to ‘free’ lending during your course makes having a student bank account worthwhile.
Can I open a student bank account?
You can open a student bank account if you are over 18, and enrolled on a course at a college or university within the UK.
When applying for a student account you will need to provide proof of your student status.
Some UK banks have separate student accounts for international students.
How do I open a student bank account online?
Most banks allow you to apply online for a student bank account. Once you’ve chosen a student bank account, go to their website and complete an online application.
You typically won’t need to visit a branch in person but you will need to upload a photo ID, such as your passport.
New applications are normally processed within 24 hours but can take up to a week.
When can I open a student bank account?
Most UK banks allow students to apply for a student bank account within six months of their course start date.
You can open an account once your course starts, but this will mean your Student Finance payments will be delayed.
We recommend you apply to open a student account between July and August. This is the period when the best student deals are available ahead of the new academic year.
Can I switch student bank accounts?
If you are already a student, you can switch to another student account during your course.
In fact, we recommend that you check the best student bank accounts each summer. If there is a much better deal available, switch!
It’s much easier than it used to be. The Current Account Switch Service means banks are responsible for transferring everything over for you.
Here’s our guide to switching bank accounts.
Can I have more than one bank account?
Yes, anyone can have multiple bank accounts and it’s very common. Especially when it comes to joint accounts.
Many people these days use app-based digital banks alongside traditional high street banks too.
It can sometimes be possible to have two student bank accounts but to benefit from the overdraft facility you will need to pay in your Student Finance.
What is an overdraft?
An overdraft facility allows you to spend more money than you physically have. It’s a bit like a credit card but far cheaper (or free in the case of many student accounts) – so long as it is arranged.
Student bank accounts are unique because they often include an arranged overdraft facility without interest. Mainstream bank accounts usually charge you a small amount for being in your overdraft (ie. being overdrawn).
In both cases, if you go beyond your arranged overdraft you can expect to be charged penalty fees and high rates of interest.
You are not guaranteed to always get the advertised overdraft limit. It depends partly on your credit rating.
Can I get a postgraduate bank account?
It used to be that banks had specific accounts for postgraduate students. These days postgraduates can either apply for (or switch to) a normal student bank account or extend a student account already held.
To be eligible you will need to be on a recognised master’s or doctorate (PhD) course at a British university.
Some student accounts are only available to full-time students. If you’re on a part-time postgraduate course, you may have to make do with a normal current account.
Speak to your current bank first to see what they’re willing to offer. If that doesn’t prove fruitful, work through the banks above to see if you can switch on to another student account.
If you don’t take any action, your student account is likely to morph into a graduate bank account.
What happens when I graduate?
Once you graduate and leave university, your student account will usually become a graduate bank account.
It depends on your bank and the terms of your account, but graduates typically have a year or two to pay off their interest-free overdraft.
It can be worth considering switching bank accounts once you graduate.
Can international students apply for a UK student account?
If you are a student coming to the UK to study, unfortunately you won’t be eligible for an overdraft and most of the benefits that come with the student bank accounts reviewed above.
See our review of the UK international student bank accounts. Most of these accounts don’t charge a subscription fee and allow you to make cash withdrawals and card payments.
Otherwise, you can apply for a basic current account with most UK banks. Or consider a prepaid card.
How can I protect myself from banking scams?
Be very careful with your banking information. Never share your PIN number or login information with anyone, not even employees of the bank.
There are lots of text message scams around, pretending to be your bank and asking for sensitive information.
If in doubt, always contact your bank directly on their official phone number. Forward suspicious texts to 7726.
And never accept to store money in your account for people you don’t know. Students are targeted by criminals to keep illegally obtained cash, known as ‘money mules’.
Read more about the 15 common money scams to avoid.
See what students had to say about their banks in our latest student banking survey.
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