Best student bank accounts 2018

Updated 1 February 2018

Choosing the right student account can be a bit of a minefield… but not with our detailed comparison on what all the banks have to offer students in 2017/18!
student bank accounts Looking to open a student account but not sure which bank to go with or how to apply? Well you're in the right place!

We'll take you through all the important things to look out for when choosing a bank, plus review and compare the best student accounts this year in a clear comparison table.

Compare student bank accounts

7 things to consider
What you need to open a student bank account
Best student accounts this year
Video guide

7 tips for choosing a top student bank account

Banks want YOU!
Banks are actively targeting students, more than any other group of the population.
There's good reason, too. Students are essentially investing in themselves to (hopefully) get a higher than average salary when they graduate.
Whilst you may be borrowing now to fund your education, banks expect that, in the near future, you will reap the rewards and they hope that you stash your high earnings away with them.
Banks are looking to establish loyalty, and have good odds at keeping you for life once you've opened a student bank account with them.
Just remember that you don't have to be loyal, and you should switch banks if necessary to benefit from the next best deal. It may seem like too much effort, but switching can pay dividends for many students and graduates.
Beware of the student bank account “freebies”
There's a whole lot on offer this year but don't be fully taken in by freebies! Short-term offers including free products, insurance, cashback rewards, “exclusive” deals and other useful things may sound very appealing but you need to be smart.
A student bank account offering free MP3 downloads worth £20 is nowhere near as good as getting a large interest-free overdraft for 3 years or more.
Go for the largest student overdraft
An arranged overdraft is a common way of borrowing money through your current account. The best thing about a student account 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 feel like you need the full overdraft, still apply for it then take some of it out (interest-free) to pump up your savings account.
Now you're playing the system! You actually make money by earning interest on the borrowed money whilst you're a student. We're not talking mega-bucks, but for something so easy to do, it's not a bad return!
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. You'll need to starting paying up before you start getting screwed by higher repayments. Just as importantly, don't ever go over your arranged student overdraft limit or you could suffer hefty bank charges.
Also, you should never go over your overdraft limit. The charges can be extortionate and could lead to even more debt. If you are ever near the limit talk to your bank.
Is the overdraft “up to” or “guaranteed”?
It's worth noting that the advertised student overdraft limit is often the maximum you can get. This amount is usually only available in your final year at university and only to students with a decent credit rating (see below).
For example, pretty much all of the high street banks attract students by offering an overdraft of “up to” £3,000. However we know that many students have claimed never to have received the full £3,000 at any point during university.
If you still need to know more about what an overdraft is, check out our guide here.
Know the repayment conditions
In a recent survey we conducted, 65% of students asked said they didn't really know when they have to repay their student overdraft. Sure, you probably won't have to repay it until after you graduate, but by then it can be too late and the sudden demand for £3,000 can be quite a shock!
After university, most banks automatically turn your student account into a graduate bank account which deals with repaying your overdraft over a certain period. Take a look at our graduate bank account guide which lists the top accounts on offer to graduates and gives you an idea of how much money you are likely to have to pay back and how quickly.
Know your credit rating
Student accounts have overdrafts which means they're offering a form of borrowing. This means that when you apply you'll be credit scored. And sometimes the quality of your score determines how much overdraft you'll be offered. You can raise your chances of approval by figuring out and increasing your credit score.
3 main agencies hold your score and you can check each of them for free. Check Experian here, Equifax here and Callcredit here.
There's more info on credit score and how to find out what yours is here.
Location, location, location…
A local bank can prove to be worthwhile, especially when you need to make a cash or cheque deposit, or hand over any documentation.
Having said that, don't make this your primary concern. You can withdraw money for free from other ATMs and with the increase in internet banking there are less reasons to head to your local branch these days.

See what students said about their bank in this year's Student Banking Survey

What do you need to open an account?

Luckily, there's not too much! However at the least you will be required to show:

One or two forms of photo ID: such as a passport or driver's 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.

Most banks now allow you to apply online for a student bank account, but you will still have to send off supporting documents or take them into your local branch. Documents must be original copies, not photocopies.

Hopefully things are a bit clearer for you now. With this information in mind, below are the best student bank accounts for this year, taking the overdraft interest-free terms into account.

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Student bank accounts 2018
1.	123 Student Account	Up to £1,500 Breakdown Year 1: £1,500 Year 2: £1,500 Year 3: £1,500 Year 4: £1,800 Year 5: £2,000	4yr 16-25 railcard	See fees £5 daily charge (max. 10 days of fees per month) + for each item either £5 if payment was approved or £10 if it bounced.	1% £100+ 2% £200+ 3% up to £2k	More
Santander student bank account review Overdraft 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 (eg. student 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 4 year 16-25 railcard is worth around £100 and saves you one-third off all train travel within the UK. If you switch to this account from another as a current student you will also be eligible for the 4 year railcard. Tip: Once you receive the free railcard (usually you receive a code within 60 days of opening your account) you could switch to another bank offering a larger overdraft ;) Our review 2017 Student Satisfaction Winner! Santander's advertised overdraft is half that of other banks, so why is it our top pick 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 average of your degree. They also came top in our student survey this year, and in this case the freebie railcard is good value, saving you the cost of buying it and of course the ticket savings for your whole degree thereafter. Student Satisfaction Score: 4.4 out of 5 Visit Santander » Hide Review
2.	FlexStudent Account	Up to £3,000 Breakdown Year 1: £1,000 Year 2: £2,000 Year 3: £3,000	None	None	1% up to £1k	More
The Nationwide student bank account review Overdraft One of the best advertised this year. 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 yo £1k in year one and £3k in year three. Our review This is the second year that Nationwide have put their hat in the student bank account ring, and it's been a well received deal. There's no sign up incentive but the overdraft on offer is one of the largest (and the only one that's fully guaranteed) and the in-credit interest will help a little for any students who are out of their overdraft. There is the added bonus of fee-free withdrawals abroad but this doesn't mean you'll be getting a good exchange rate and you'd most likely be better off with a Monzo or Revolut card. It's a decent perk but shouldn't sway your decision. Student Satisfaction Score: 4.3 out of 5 Visit Nationwide » Hide Review
3.	Student Current Account	Up to £1,500 Breakdown Year 1: £1,500 Year 2: £1,500 Year 3: £1,500	None	See fees 24.2% EAR¹ + £28 a month + £10 for unpaid (bounced) items.	0.10%	More
Halifax student bank account review Overdraft Although Halifax advertise an 'up to' £1,500 at 0% from your first year at uni, you're very unlikely to get the total amount. To increase your overdraft amount you'll need to keep hounding the bank through university as well as top up £500 a quarter, and they'll judge case-by-case. Aside from your abilities to mither 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! Whilst not being the worst place to bank, Halifax do have some nasty penalties for going over your arranged overdraft to beware of. If you get this account you should never go over your limit! The account also lacks any form of notable freebie which is disappointing. Student Satisfaction Score: 4.26 out of 5 Visit Halifax » Hide Review
4.	Student Bank Account	Up to £3,000 Breakdown Year 1: £3,000 Year 2: £3,000 Year 3: £3,000	£60 Amazon gift card + 1yr Student Prime	None	None	More
HSBC student bank account review Overdraft All students are guaranteed £500 upon opening an account, but most are unlikely to get more than a £1,500 overdraft in their first year. Having said that, if you have a good credit score you might get closer to the full £3,000 sooner. Sign up incentive First year students will receive a free £60 Amazon voucher (before 31/10/2017). You can also take advantage of one whole year of free Amazon Student Prime. Once you have finished your first year of study you can no longer switch to this account for the benefits. Our review HSBC have got a decent account this year. The freebies are pretty decent although it's worth knowing that all students can already get 6 month's worth of Amazon Student Prime for free meaning this account only technically gives you 6 months free. They are the only student account that won't allow you to spend beyond your arranged 0% overdraft, which means you don't risk any nasty overdrawn charges. Check out our Santander review above for a clever trick combining the two accounts to really squeeze out the value from the banks. Student Satisfaction Score: 4.03 out of 5 Visit HSBC » Hide Review
5.	Student Account	Up to £2,000 Breakdown Year 1: £2,000 Year 2: £2,000 Year 3: £2,000	4yr National Express coachcard	See fees £6 for each bounced item (max. £60 in any period).	None	More
RBS Student Account Review Overdraft 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 1st term to £2,000 in your 2nd. Be aware that you must deposit £750 every 6 months (eg. your maintenance loan) and make at least 3 monthly transactions to get any overdraft at all. Sign up incentive The free National Express coachcard is worth £27. It gives you 1/3 off coach travel as long as you sign up for paperless statements. It's not a great freebie in comparison to the railcard but if getting a coach is your preferred form of transport then it could come in handy. Our review RBS used to be more competitive however have recently slipped down the table due to lower overdraft amounts. The freebie is pretty good and the tiered overdraft system can also be a benefit in that you can't blow your whole overdraft in the first term! Student Satisfaction Score: 4.1 out of 5 Visit RBS » Hide Review
6.	Student Current Account	Up to £2,000 Breakdown Year 1: £2,000 Year 2: £2,000 Year 3: £2,000	4yr National Express coachcard	See fees £6 for each bounced item (max. £60 in any period).	None	More
NatWest student account review Overdraft 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 1st term then up to £2,000 in your 2nd. Be aware that you must deposit £750 every 6 months (eg. your maintenance loan) and make at least 3 monthly transactions to get any overdraft at all. Sign up incentive The free National Express coachcard is worth £27. It gives you 1/3 off coach travel as long as you sign up for paperless statements. It's not a great freebie in comparison to the railcard but if getting a coach is your preferred form of transport then it could come in handy. 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 freebie is ok and the tiered overdraft system can also be a benefit in that you can't blow your whole overdraft in the first term! Student Satisfaction Score: 4.1 out of 5 Visit NatWest » Hide Review
7.	Student Additions Account	Up to £3,000 Breakdown Year 1: £1,000 Year 2: £2,000 Year 3: £3,000	None	See fees £8 a day for any bounced items (max 1/day).	None	More
Barclays student account review Overdraft 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 £2,000 and £3,000 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. Our review The overdraft is pretty meaty but not guaranteed but there aren't any other incentives. Overall there's better out there! Student Satisfaction Score: 4.07 out of 5 Visit Barclays » Hide Review
8.	Student Current Account	Up to £1,500 Breakdown Year 1: £1,500 Year 2: £1,500 Year 3: £1,500	NUS Extra card None	See fees 8.21% EAR¹ + £6 a month + £10 for bounced items + variable daily charges.	None	More
Lloyds student bank account review Overdraft In the first year, the 0% overdraft limit is tiered: £500 for the first 6 months; £1,000 in months 7 to 9; and £1,500 beyond that. With a max. of £1,500 (or £2,000 if you study for 4-6 years), Lloyds aren't the most generous however most students will get the full amount after the first year. Sign up incentive The NUS Extra card is worth just £32, but it's valid for 3 years. It's no longer a student essential but it does offer a couple of decent exclusive discounts. 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 tiering can also help with budgeting your money over the year. The £32 value freebie however shouldn't sway your decision, you'd be better off choosing another bank and buying the NUS Extra card yourself. Student Satisfaction Score: 4.13 out of 5 Visit Lloyds » Hide Review
9.	Student Account	Up to £1,500 Breakdown Year 1: £1,500 Year 2: £1,500 Year 3: £1,500	Great in credit interest	See fees 8.21% EAR¹ + £6 a month + £10 for bounced items + variable daily charges.	5% up to £500	More
TSB student account review Overdraft The TSB 0% overdraft is tiered in the first year: £500 for the first six months; £1,000 in months 7 to 9; and up to £1,500 thereafter. You'll need to apply and badger them to bump up your limit but, depending on your credit score, chances are good of receiving the full advertised amount by the second year. Our review There's nothing special about this student account so we'd suggest checking out the other options. Student Satisfaction Score: 4.05 out of 5 Visit TSB » Hide Review
10.	Student Account	Up to £2,000 Breakdown Year 1: £1,400 Year 2: £1,700 Year 3: £2,000	None	See fees 18.9% EAR¹ + £15 for each item that bounced.	None	More
The Co-operative student bank account review Co-op currently have no account for 2017 but we are in touch with them for full details. The info here is for current customers only at the moment. Overdraft To be eligible for the full amount you must deposit £300 straight away and then continue to deposit your main source of income (eg. maintenance loan or wages) into the account each term. 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, the great news here is that a high number of students have reported getting the full advertised overdraft amounts with Co-op (around 90%). Just make sure to spend it responsibly. Co-op are also popular among students due to their decent customer service. Student Satisfaction Score: 3.94 out of 5 Visit The Co-op » Hide Review
¹ EAR = Equivalent Annual Rate. Ranked by best value. Figures and terms subject to change. Please check websites for details.
Existing students, make sure you're still getting the best deal by switching! The top student bank accounts change each year (along with this page). Join our free newsletter to keep in the loop and also be informed of the best student deals handpicked by us every week!

Student bank accounts 2018

Rank

Bank Account

0% Overdraft

Incentive

Unarranged Overdraft Fee

In-credit Interest

Review

123 Student Account

Up to
£1,500

4yr 16-25 railcard

1% £100+
2% £200+
3% up to £2k

FlexStudent Account

Up to
£3,000

None

1% up to £1k

Student Current Account

Up to
£1,500

None

0.10%

Student Bank Account

Up to
£3,000

£60 Amazon gift card + 1yr Student Prime

None

Student Account

Up to
£2,000

4yr National Express coachcard

None

Student Current Account

Up to
£2,000

4yr National Express coachcard

None

Student Additions Account

Up to
£3,000

None

Student Current Account

Up to
£1,500

NUS Extra card None

None

Student Account

Up to
£1,500

Great in credit interest

5% up to £500

10.

Student Account

Up to
£2,000

None

¹ EAR = Equivalent Annual Rate.
Ranked by best value. Figures and terms subject to change. Please check websites for details.

Existing students, make sure you're still getting the best deal by switching! The top student bank accounts change each year (along with this page). Join our free newsletter to keep in the loop and also be informed of the best student deals handpicked by us every week!