Student Banking

Student bank accounts give you access to a variety of benefits (e.g. interest-free overdraft, free railcard, free tastecard) which are not available through ordinary bank accounts.

Benefits will vary from bank to bank so it is a good idea to research and see which student account is the best one for you.

You can compare information about the student accounts that are on offer on various comparison websites and you can also visit the individual banks’ websites for up-to-date information. Money Saving Expert provides a list that allows you to compare a range of bank accounts here. Save the Student also provides a handy table of options here.


Most student accounts offer an interest-free overdraft with the account but how much is given and what charges may apply if you exceed the arranged overdraft will vary.

An overdraft facility allows you to essentially borrow money from the bank. The amount you can borrow will be set by your bank is either set at the start of the year or it could increase in stages during the course of the year.

It is common for banks to allow you to extend your overdraft limit with each year of study, but you may need to apply to do this.  Your eligibility to extend your overdraft limit may depend on how well you have managed your account (e.g. not exceeding the limit without permission from the bank) in the past and your age.

Remember, if you exceed your overdraft limit without permission from the bank you will incur bank charges which can become very expensive. Therefore, it is most important to check through all the fine print related to your overdraft before you commit to an account or start using your overdraft.

What happens with my student account once I graduate?

When you graduate, you can usually apply to switch over to a graduate account or your bank will do it for you automatically. It is worth shopping around and looking what benefits you can get from different graduate accounts as the bank you are with may not be best for a graduate account.

There can be offers for switching banks such amounts of cash for making a switch. Most banks will be signed up for The Current Account Switch Guarantee scheme which makes switching banks easier and safe. This page explains how the scheme works and you can find more information about how to switch banks here.

Money Saving Expert publishes some advice on the best graduate bank accounts here and you can also find a ranked list from Save the Student here.