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Best Student Bank Accounts 2025

Updated: Jan 30, 2025, 3:14pm

Bethany Garner,  Emma Lunn
Editor,  Contributor
Katie Brain
Insight consultant in banking, Defaqto

Reviewed By

Updated: Jan 30, 2025, 3:14pm

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Whether you’ll be starting university in 2025 or you’re already studying in higher education, it’s worth comparing student current accounts to ensure you find the right deal.

The big UK banks compete with each other every year to grab a share of the undergraduate market, offering various perks such as interest-free overdrafts, railcards, and retail discounts.

For students, choosing an account isn’t always easy, and according to the Student Money Survey 2024 from Save The Student, nearly a quarter (74%) say they wished they’d had more financial education before they arrived at university.

Why you can trust Forbes Advisor’s ratings

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  • Market-wide survey of leading current account providers
  • Rigorous assessment of account features and benefits
  • Thorough analysis of pros and cons
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Our pick of the best student current accounts

To make things simpler, we’ve taken a look at what the market currently has to offer students, based on a methodology we’ve created and explained below.

FEATURED PARTNER OFFER

Santander Edge Student Current Account

Santander Edge Student Current Account
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

£1,500 yrs 1-3/ £1,800 yr 4/ £2,000 yr 5

Welcome offer

4-year rail card

Apply by

Any time in year 1

Santander Edge Student Current Account
Open Account
On Santander's website

0% overdraft

£1,500 yrs 1-3/ £1,800 yr 4/ £2,000 yr 5

Welcome offer

4-year rail card

Apply by

Any time in year 1

Why We Picked It

The Santander Edge Student Account provides a 0% overdraft, starting at £1,500 in the first three years of study. If your course lasts longer, or you go onto post-graduate studies, it increases to £1,800 in the fourth year and £2,000 in the fifth. Account holders deposit at least £500 per academic term.

The account also offers a free 4-year 16-25 Railcard, saving users a third on all UK rail fares (note: accountholders must apply for the railcard in the first 60 days of opening the account).

Existing Santander customers must transfer to the Edge Student Account as customers cannot hold both accounts simultaneously.

Pros & Cons
  • Free 4-year railcard
  • Occasional cashback at partner retailers through Santander Boost programme
  • Pay in minimum £500 per academic term
  • Need to make a full switch of any existing Santander account
FEATURED PARTNER OFFER

Nationwide FlexStudent

Nationwide FlexStudent
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

Up to £1,000 yr 1/ Up to £2,000 yr 2/ Up to £3,000 yrs 3+

Welcome offer

None

Apply by

Within 12 months of course start date

Nationwide FlexStudent

0% overdraft

Up to £1,000 yr 1/ Up to £2,000 yr 2/ Up to £3,000 yrs 3+

Welcome offer

None

Apply by

Within 12 months of course start date

Why We Picked It

“Nationwide offers interest-free overdrafts for students, starting with up to £1,000 in the first year and increasing to £2,000 and then £3,000 in subsequent years. As with any current account, actual overdraft limits depend on your credit score, with the headline offers going to those with the best credit histories.

The initial overdraft and subsequent increases are not automatically granted – they have to be requested. To account also requires a minimum deposit of £500 per term.

If your studies involve an overseas element, or you’re planning a holiday, Nationwide charges no foreign transaction fees, which are typically around 3%.

The FlexStudent Account holders get access to certain Nationwide savings accounts, such as the Flex Regular Saver. “

Pros & Cons
  • Fee-free spending abroad
  • Generous 0% overdraft limits
  • Overdraft not guaranteed in any year
  • Need to request overdraft and limit increases
FEATURED PARTNER OFFER

NatWest Student Bank Account

NatWest Student Bank Account
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

Up to £2,000 yr 1 & yr 2; Up to £3,250 yr 3 onwards

Welcome offer

None

Apply by

Within 6 months of course start date

NatWest Student Bank Account

0% overdraft

Up to £2,000 yr 1 & yr 2; Up to £3,250 yr 3 onwards

Welcome offer

None

Apply by

Within 6 months of course start date

Why We Picked It

NatWest’s Student Bank Account comes with a free four-year tastecard worth £55 a year. The tastecard offers 2-for-1 on food (or up to 50% off) at participating UK restaurants.

Applicants must be at least 17 years old, have lived in the UK for a minimum of three years and must not have received a student banking welcome offer since 1 July 2020. Applications must be made online.

There’s an interest-free overdraft of up to £2,000 in years 1-2 (though it’s limited to £500 in your first term). Students in year 3 onwards can apply for up to £3,250.

The overdraft facility is only available to full-time undergraduate students aged at least 18 and on a course lasting at least two years at a UK college or university. Also eligible are students doing a full-time postgraduate degree or nursing course that lasts at least a year.

Pros & Cons
  • Free 4-year tastecard* (worth £55 per year)
  • Cardless cash withdrawals
  • Can apply up to 6 months after course start date
  • £500 maximum overdraft in first term
  • Extra overdraft not guaranteed after term 1
  • Not eligible if you have received a student offer from NatWest Group at any time since 1 July 2020
FEATURED PARTNER OFFER

RBS Student Bank Account

RBS Student Bank Account
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

£500 in term 1/ Up to £2,000 from year two/Up to £3,250 from year three

Welcome offer

None

Apply by

Within 6 months of course start date

RBS Student Bank Account

0% overdraft

£500 in term 1/ Up to £2,000 from year two/Up to £3,250 from year three

Welcome offer

None

Apply by

Within 6 months of course start date

Why We Picked It

RBS’s overdraft isn’t as competitive as those offered by some banks in our list. It offers a guaranteed £500 in the first term and then up to £2,000 during the first and second years. Year 3 students can apply for an increase up to £3,250, but it’s not guaranteed.

Royal Bank of Scotland belongs to the same banking group as NatWest, and also offers a free four-year tastecard with its student account. The card entitles the holder to 2-for-1 on food, or up to 50% off at participating UK restaurants.

Pros & Cons
  • Free 4-year tastecard
  • Cardless cash withdrawals
  • Overdraft not guaranteed after term 1
  • £500 maximum overdraft in first term
  • Not eligible if you have received a student offer from NatWest Group at any time since 1 July 2020
FEATURED PARTNER OFFER

Halifax Student Current Account

Halifax Student Current Account
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

Up to £1,500

Welcome offer

None

Apply by

Any time

Halifax Student Current Account

0% overdraft

Up to £1,500

Welcome offer

None

Apply by

Any time

Why We Picked It

Halifax Student Current Account offers an interest-free overdraft of up to £1,500. It doesn’t come automatically though, and must be applied for. Those with chequered histories of managing credit may not get the headline limit of £1,500.

Students who manage to carry a credit balance can earn 0.50% AER (variable), which is low but better than 0%. Accountholders can also access cashback offers via the Halifax Cashback Extras scheme.

Pros & Cons
  • Access Halifax Cashback Extras
  • Earn interest on in-credit balances
  • Overdraft not guaranteed in any year
  • £1,500 maximum overdraft limit
FEATURED PARTNER OFFER

HSBC Student Bank Account

HSBC Student Bank Account
4.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

£1,000 yr 1/ Up to £2,000 yr 2/ Up to £3,000 yrs 3+

Welcome offer

None

Apply by

Any time

HSBC Student Bank Account

0% overdraft

£1,000 yr 1/ Up to £2,000 yr 2/ Up to £3,000 yrs 3+

Welcome offer

None

Apply by

Any time

Why We Picked It

HSBC’s £1,000 interest-free overdraft is guaranteed in the first year of study, but not in years 2 or 3, when it is available up to £2,000 and £3,000, respectively. Actual limits depend on account holders’ credit scores. Increases aren’t applied automatically, but must be requested.

While it might not be conducive to the needs of a typical student, HSBC current account holders also get access to its savings accounts.

Its Regular Saver account pays 5.00% AER when you deposit between £25 and £250 per month, but withdrawals aren’t permitted until the end of the 12-month term. If you think you’ll need to make withdrawals, an easy access account may be more appropriate.

Pros & Cons
  • Generous 0% overdraft limits
  • Discounts via home&away programme
  • Access to Regular Saver paying 5.00% AER
  • Overdraft limits in yrs 2 and 3 not guaranteed
  • Need to request limit increases
FEATURED PARTNER OFFER

Lloyds Bank Student Current Account

Lloyds Bank Student Current Account
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

Up to £1,500 yrs 1-3/Up to £2,000 yrs 4+

Welcome offer

None

Apply by

Any time

Lloyds Bank Student Current Account

0% overdraft

Up to £1,500 yrs 1-3/Up to £2,000 yrs 4+

Welcome offer

None

Apply by

Any time

Why We Picked It

Lloyds Bank Student Current Account comes with an interest-free overdraft of £500 in the first 6 months, rising to £1,000 during months 7 to 9 and then £1,500 during months 10 to 12. Account holders can borrow up to £1,500 during years 2 and 3, then up to £2,000 during years 4 to 6.

You have to apply for the overdraft separately to applying for the student account. You also need to apply to have your overdraft limit increased.

Pros & Cons
  • 2% interest on balances up to £5,000
  • Can apply any time during course
  • Overdraft not guaranteed in any year
  • £2,000 maximum overdraft limit
FEATURED PARTNER OFFER

TSB Student Bank Account

TSB Student Bank Account
4.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

0% overdraft

Up to £1,500

Welcome offer

None

Apply by

Any time

TSB Student Bank Account

0% overdraft

Up to £1,500

Welcome offer

None

Apply by

Any time

Why We Picked It

TSB’s Student Bank Account comes with an interest-free overdraft of up to £1,500. This is capped at £500 in the first six months of your study, and increases to £1,000 during months seven to nine before rising again to £1,500 from month 10.

Accountholders earn 5.00% AER (variable) on in-credit balances up to £500 and the account can be applied for at any time during your studies.

Pros & Cons
  • 5% interest on balances up to £500
  • Apply any time during course
  • Overdraft not guaranteed in any year
  • £1,500 maximum overdraft limit

What is a student current account?

Student current accounts are designed specifically for young people studying for a degree, or equivalent qualification, in higher education, such as university or college.

Students typically live on a tight budget, relying on loans and part-time jobs to make ends meet, so a major draw of a student bank account is usually the interest-free overdraft.

Most student accounts also offer a range of benefits, including high street shopping discounts, rail travel discounts, and even cash welcome bonuses.

New accounts for students are launched during the summer months, ahead of the new academic year. And applying is usually quick and straightforward. You can find more on this below.

The majority of banks this year (2024/2025) are offering some kind of sign-up bonus to draw in new customers. But with Student Loans now falling short of living costs by £582 per month according to our recent survey, I’d argue that a bigger 0% overdraft is more useful than almost any freebie, including cash.

An interest-free overdraft represents one of the safest and most accessible sources of extra cash while at university. If you compared an account with a £3,000 overdraft and no freebie, to one with a £2,000 overdraft and a £100 freebie, I would almost always recommend the former.

– Tom Allingham, student banking expert at Save the Student

Are student bank accounts necessary?

There’s nothing to prevent a young person in higher education using a standard bank current account, but a student bank account (with its tailored perks and features) is likely to offer greater value and be more suitable, particularly if you’ll need to borrow on an overdraft.

Student accounts come with interest-free overdrafts, which means there’s no cost associated with going overdrawn. This is particularly important for those students who may need to rely on an overdraft for day-to-day living costs.

Undergraduates can apply for a student account once they’ve received an unconditional offer from a university/higher education institution, or once their place has been confirmed.

How students choose their banks

The Student Banking Survey found that nearly half (47%) of students were influenced by their existing bank when choosing a student bank account.

Giveaways and discounts swayed a quarter of people, while surprisingly just 15% said the overdraft was the most important consideration.

What do I need to open a student bank account?

To open a student bank account, you must be a UK resident aged at least 18 years old and have an unconditional offer from a university or higher education institution, or be already enrolled. Some banks may also accept students on apprenticeship schemes.

Applications tend to be online or through a mobile app these days – but you can always apply in-branch. You’ll need to provide some personal information, plus some course and university details.

You’re likely to be asked to show a form of photo ID, such as a passport or driving licence, and proof of acceptance into university. Further documents you may need to show are likely to include the following:

  • UCAS status code
  • student ID card
  • official letter of acceptance.

If approved, you’ll typically receive your debit card within a week.

What other banks offer student bank accounts?

Student bank accounts are also available from the Co-operative Bank (part of Coventry building society), Barclays, Bank of Scotland, and Ulster Bank. Danske Bank, AIB, and Bank of Ireland also offer student bank accounts in Northern Ireland.

Although challenger banks such as Monzo and Revolut offer appealing budgeting features within their respective apps, they don’t offer specific student bank accounts.

Methodology

Student bank accounts tend to be offered by the same handful of high street banks every year, so we included those brands in our research.

We were mainly interested in accounts with interest-free overdrafts, followed by accounts with perks such as freebies, cashback and ‘card-free’ cash withdrawals.

Frequently Asked Questions (FAQs)

How do student overdrafts work?

Most student bank accounts offer 0% interest on overdrafts, at least up to a certain limit, although this can be high, such as up to around £3,000 in some cases. These accounts are sometimes advertised as having a ‘free’ overdraft.

This does not mean you can borrow without having to pay it back, it just means you only have to repay what you borrow, without interest.

Also, what’s advertised isn’t necessarily what everyone gets. The offer tends to be ‘up to’ a limit, meaning some people will be offered less than the headline overdraft amount.

The actual overdraft an applicant gets is determined by a credit check. Those who have mismanaged credit in the past by missing repayments on something like a phone contract, for example, could get a less favourable overdraft limit, or might even be rejected.

What happens if I exceed my student overdraft limit?

If you exceed your overdraft limit and go into an ‘unarranged overdraft’, you can no longer be charged a higher amount than you would for staying within your overdraft limit on an interest-charging overdraft.

This has only been the case since 2020, and as a result, some banks such as Barclays and Nationwide, simply don’t allow student account holders to go into an unarranged overdraft. It means any attempt to spend beyond the overdraft limit will be rejected.

Natwest, RBS and Ulster charge £1.55 per withdrawal or rejected payment if it takes the account holder into an unarranged overdraft.

What perks are on offer with student bank accounts?

Student bank accounts tend to include the following types of perks:

  1. 16-25 Railcard
  2. cashback on purchases
  3. retailer discounts
  4. tastecard
  5. Amazon Prime or Spotify membership
  6. Uber Eats vouchers
  7. cash welcome bonus.

While discounts on food and travel can help, an interest-free overdraft tends to be more helpful.

What happens to my student account when I graduate?

Student bank accounts typically convert to graduate accounts automatically once the accountholder has completed their studies, which might come with different features and benefits.

Crucially though it also means different arrangements for overdrafts. For example, after a grace period the portion of the overdraft that is interest-free reduces with each year.

You don’t have to stay with your student bank and can switch to a graduate account or a regular current account with another provider, as long as you meet the criteria for the new account.

Do student bank accounts pay interest?

TSB currently pays 5.00% AER up to £500, Lloyds Bank Student account pays 2% interest up to £5,000 and Halifax Student account pays 0.50%.

But for students with savings or cash on deposit, there are likely to be savings accounts that pay more in interest. Also consider cash ISAs (Individual Savings Accounts) which tend to have competitive rates. With an ISA there is no tax on savings interest on deposits up to £20,000 per tax year.

How do I find the best student bank account?

If you’re looking ahead to the academic year 2025/26, you’ll need to wait until the accounts are launched in the summer in order to compare the best deals. Narrow your focus to the interest-free overdrafts on offer, and try not to be swayed by lucrative perks.

If you’re just now looking for an account for the current academic year, check our list of the best student bank accounts above.

How do I open a student current account?

You can apply online, in-app or in-branch, as long as you have the following:

  1. photo ID (driver’s licence or passport)
  2. proof of address e.g. on a bank statement
  3. evidence of your student status e.g. UCAS number, offer letter etc.
  4. copy of your student loan financial assessment form
Guides To Student Banking
Recommended Reading
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Bethany Garner Editor

I’ve been writing for a broad array of online publications for four years, always aiming to make important insights accessible. It’s my goal to ensure that as many people as possible can make informed decisions about their money, and get the most out of their finances with the least amount of stress.

Emma Lunn Contributor

Forbes Advisor UK’s broadband and mobiles expert, Emma Lunn has reported prolifically on the subjects for more than 16 years. Her award-winning work features in national newspapers, right through to specialist websites and trade titles.