Are you soon going off to university & looking to open a student bank account, but have no idea what bank to go with? Don’t fret, you’ve come to the right place. Choosing the best student bank account that is suitable for you can be a right hassle, but here at The Stay Club, we aim to guide you on your journey to independence. We are going to take you through the basics of having a student account, how to open one & which are the best options to choose from.
What Is A Student Bank Account?
A student bank account is an account exclusively designed for students. The main characteristics that make it a student account is that it offers interest-free overdrafts & other freebies to win you over…I mean, there’s nothing better than hearing the word “free”! Keep in mind, you can only be entitled to this if you have proof of your student status. Having a student account is very important as this is where your student loans will go if you don’t have a bank account already. Plus, having an account is a very important step in becoming more of an independent adult as it will give you a chance to have financial literacy as you’ll be paying bills and other financial commitments.
Have any questions?!
Here are some common questions you may have about having a student account!
1. How old do you need to be to apply for a student bank account?
You need to be 18 years old. Additionally, you must have received an offer letter from UCAS or be in full-time education at university to apply for a student bank account.
2. What do I need to open a student account?
Fortunately, you don’t need to do too much, all you will need to provide is 1 or 2 forms of photo ID, whether it be a passport or driving licence. Proof of address & proof of student status, which in this case can be the UCAS acceptance letter to your university.
3. Can you change your student bank account?
It is possible, but if you’re overdrawn in an existing account, you will have another credit check to get a new student bank account.
4. What happens to your student account when you finish Uni?
After you graduate, your student account becomes a graduate account & you’re no longer entitled to an interest-free arranged overdraft. Yes, the joys of having the freebies will come to an end and you must pay up like everybody else! It’s important to note, that over time some banks will reduce the amount of your overdraft & you would have to start making repayments if you’re in it.
Tips for Choosing A Student Bank Account
Many banks desire you to sign up with them to open student bank accounts & they will use perks like freebies to lure you in without giving you the thought if it’s the right bank for you. Stay alert guys! Perks like a free railcard… (though nice), cash rewards, and exclusive deals should not tempt you if you feel the services provided do not serve you. Elements to look out for are the following:
1. Specs of The Overdraft
Go for the largest arranged overdraft limit with the longest 0% overdraft facility. Student bank accounts have the luxury of obtaining an interest-free overdraft, meaning you pay back nothing more than what you borrow! Keep a mental note that this should be used in case of emergencies. This will allow you to not spend it frivolously.
2. The Difference Between Up to & Guaranteed!
When you have been accepted for an overdraft, understand the amount offered to you. Whether it’s up to the amount or maximum, use this as a way to compare who you want to go with.
3. Understand the Terms & Conditions
Before you commit to an overdraft, ensure you understand the terms & conditions, especially when after you graduate as the services provided change with your status.
4. Credit Rating
Due to the nature of student accounts, you’ll undergo a credit rating and this will determine how much overdraft you’ll be offered. To better understand your credit score, check out Experian and find out for free!
The Best Student Bank Accounts
Now that we’ve shared tips on how to open a student bank account, here’s a detailed list of the best student bank accounts UK:
Nationwide FlexStudent Account
The Nationwide FlexStudent account offers 0% overdraft & accepted students receive a £1,000 overdraft in year 1, £2,000 in year 2 & £3,000 in year 3. This is the agreed limit as long as you deposit £500 a term and maintain a good credit score.
Key Info:
– 0% Overdraft
– Up to: £3,000
– Year 1: £1,000
– Year 2: £2,000
– Year 3: £3,000
– Who’s eligible: First-year university students and don’t have a student account with another provider
– Incentives: None
Santander 123 Student Current Account
The Santander 123 Student Current Account offers accepted students and apprentices a 0% overdraft of up to £2,000. Additionally, Santander offers a free four-year Young Person’s Railcard which saves students one-third of all train travel within the UK. Cheers to all the staycations happening this year!
Key Info:
– 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
– Who’s eligible: University students about to start or in their first year, or apprentices who permanently live in the UK
– Incentives: Four-year Young Person’s Railcard
Barclays Student Additions Account
The Barclays Student Additions Account offers a 0% overdraft and students upon opening an account, receive £500 in their first term and can request an increase for the rest of the year. Incentives include a 12-month subscription to Perlego, (worth around £100) which gives online access to textbooks & other reading material. In addition, you can also get cashback from participating online and high-street stores.
Key info:
– 0% Overdraft
– Up to £3,000
– Year 1: £1,000
– Year 2: £2,000
– Year 3: £3,000
– Who’s eligible: University students about to start or in their first year, or apprentices who permanently live in the UK
– Incentives: a 12-month subscription to Perlego
RBS Student Account
The RBS Student Account offer 0% overdraft and accepted students will receive £500 in their first term and will increase to £2,000 in the third year. Keep in mind, you must pay a deposit of £750 every six months e.g., from your maintenance loans. RBS offers 3 incentives to choose from such as a four-year Tastecard (discounts offered to partner restaurants), one year of Amazon Student membership and a £10 Amazon Gift Card, and a four-year National Express Coachcard.
Key info:
– 0% Overdraft
– Up to £3,000
– Year 1: £1,000
– Year 2: £2,000
– Year 3: £3,000
– Who’s eligible: University students about to start or in their first year, or apprentices who permanently live in the UK
– Incentives: one year of Amazon Student membership and a £10 Amazon Gift Card, Four-year National Express Coachcard & a four-year Tastecard
HSBC Student Bank Account
The HSBC Student Bank Account offer 0% overdraft and accepted students can receive £1000 upon opening an account. This can rise to £3,000 in your third year.
Key info:
– 0% Overdraft
– Up to £3,000
– Year 1: £1,000
– Year 2: £2,000
– Year 3: £3,000
– Who’s eligible: University students about to start or in their first year, or apprentices who permanently live in the UK
– Incentives: None
There you have it! Here are all the tips you need to know on how to open a student bank account. Opening a bank account is a big step towards adulthood. It symbolises the start of your independence and a great step to further improve your financial literacy. With all the student accounts offered from various banks, take the time to research each one to find out what’s the best for you!
