Student Bank Accounts

There isn’t a specific time you should set up your student account, but you may want it ready to go for when you start your course. That way, you’ll have access to all the features of a student account when you begin your studies and know where you’re at with your finances – particularly if you’ll need access to an overdraft. You’ll need to provide proof of your student status when you apply, so it may be worthwhile to set up your student account as soon as you’ve confirmed your place at university. 

To open a student bank account, you’ll need the following information to hand:

• Proof of ID: Typically photo ID such as your driver’s licence or passport

• Proof of address: Bank statement or recent utility bill

• Proof of student status: Your UCAS offer letter or letter of acceptance from university 

Most banks will allow you to apply online. But don’t forget to send off your supporting documents. When your new student current account is open, remember to update your Student Finance account with your new bank details. Your Student Finance Account is the hub where you can see your statements and letters about your maintenance loan or grant from Student Finance England.

When you apply for a student account you’ll receive a credit check to look at your credit history and how well you’ve managed credit in the past. If you have missed any debt repayments in the past you may find it difficult to be approved for a student account.

If your student account application hasn’t been approved, a basic bank account may suit your situation better. Basic bank accounts work in a similar way to current accounts, only with less features. You'll still be able to withdraw and deposit money, but you won’t be offered an overdraft or cheque book.

Depending on the student account you have and when you’re due to graduate, you may be able to increase your authorised 0% overdraft limit. Whether you can increase your overdraft limit will depend on your bank’s terms and lending criteria, as well as your borrowing history and financial situation. If you’re looking to increase your overdraft limit, contact your bank for more information.

Unfortunately, international students aren’t usually able to take advantage of some of the benefits included in student current accounts, such as an interest free overdraft. Instead, you will be able to open a standard current account with most banks if you’re in the UK for more than six months. Want to learn more about how current accounts work? Check out our guide to current accounts.

Once you’ve graduated from university, your student account will convert into a graduate account, which is similar to a standard current account. Your existing student overdraft may be transferred over to your new account (meaning it will stay at 0% interest for a few years) and you may be able to apply for an arranged overdraft limit on top. In some cases, the bank may ask that you start to reduce your agreed overdraft limit over a period of time, depending on your work and income status.

There are lots of types of current account to suit all sorts of personal situations. These include:

• Standard: For managing ordinary income and expenditure, usually with a debit card, a cheque book and an overdraft
• Basic: No-frills accounts which come with fewer features, designed for people with bad or no credit history
• Packaged: These come with various bonuses, including things like interest-free overdraft, insurance add-ons and discounts for other banking products. They usually have monthly fees and eligibility requirements
• Student/graduate: Current accounts designed to cover the particular financial pressures faced by students and recent graduates, normally including larger interest-free overdrafts
• Joint: Accounts designed for two or more people, to cover household expenses or couples’ expenditure
• Children’s: These have few features and are designed to introduce children to banking and saving

Some current accounts come with extra benefits for the account holder, like a cash bonus for signing up, better interest rates or even breakdown cover. The accounts might only be available to certain customers, like those with high credit ratings.

Some current accounts include fees if you use them in a certain way – some banks might charge you for resending a printed account statement or for accessing your account abroad. You may even be charged a fee for going into your overdraft without telling your bank beforehand.

The traditional idea of banking is being changed by digital or challenger banks, who provide most of their services through the internet or a mobile app rather than in branch or over the phone. Many are designed to be more open and transparent with customers and less focused on banking products.

If you tend to stay in credit and never go overdrawn, you could get rewarded regularly by your bank or building society. By switching to a rewards current account, you could get a monthly reward payment and earn cashback on your spending. Some providers will also offer a cash incentive for switching your current account to them.

Many rewards accounts have requirements such as paying in a minimum amount eachmonth, or having a minimum number of direct debits, so make sure you can meet the criteria to get the rewards.

If you’re fed up with getting poor customer service from your bank, switch your current account to a provider that’s known for looking after its customers.

As well as making your life easier, some of these accounts offer extra benefits such as competitive overdrafts or cashback for switching.