A student bank account can help you manage your money better. That is why both domestic and international students should consider getting one when studying in the UK.
In this guide, you will discover a list of the best student bank accounts.
What is a Student Bank Account?
A student bank account is a current or savings account for higher education students. Unlike standard bank accounts, student accounts often come with perks like interest-free overdrafts and freebies.
Since financial institutions will use these perks to reel students in, you should take caution when choosing a bank. Some of the things you should consider include:
- The overdraft on offer: An overdraft is an agreement you have with your bank allowing you to withdraw more money than is available in your current account. Check the interest rates you will pay if you go into minus on your account.
- The maximum overdraft: The maximum overdraft will vary from bank to bank.
- The repayment guidelines: Understand the overdraft repayment terms so that you can plan ahead.
- The incentives on offer: Take advantage of the incentives that come with student bank accounts. These perks could help you immensely.
- The bank location: You could consider joining a bank with a branch or cashpoint on campus. However, if the bank you prefer is not on campus, you can still get an account with it since it is probably offering online or mobile banking.
Furthermore, you should consider your spending and savings needs when choosing a bank.
Opening a Student Bank Account
Opening a student account is as easy as walking into a local branch or applying online. You will need original copies of the following documents.
- An ID. This could be a passport or driving licence. International students will need to produce their visas, as well.
- Proof of address such as a tenancy agreement or utility bill. That means that international students should get a permanent residence before applying for a bank account.
- A confirmation letter from the Universities and Colleges Admissions Service (UCAS) to prove that you are a student.
- Opening a student bank account could take some time. Therefore, start the process before your first term begins. Moreover, international students should bring travellers’ cheques or cash in case it takes longer to get a bank account.
When opening an account, you might have to deposit some money as well. So, find out the minimum deposit that the bank requires.
Best Student Bank Accounts
The following are five of the best student bank accounts in the UK.
Barclays
Barclays provides a student bank account to people in full-time higher education or higher apprentice. To apply for this account, you should be 18 years of age or over. Furthermore, you should have a UK phone number and residential address. Students can make their application on the Barclays app.
Below is a breakdown of what you will get with this account.
- Account type: Barclays student additions account
- Overdraft fee: Zero percent
Arranged overdraft limit
The maximum overdraft limit is £3,000. When you open an account, you will get an overdraft limit of up to £500 in the first term. After this period, the arranged overdraft limit will rise as follows:
| Year of Study | Arranged Overdraft Limit |
| 1 | Up to £1,000 |
| 2 | Up to £2,000 |
| 3 and beyond | Up to £3,000 |
Note that the maximum overdraft amount that the bank offers will vary from student to student. Some of the factors that will affect this limit are the lending criteria, your credit score, and your financial circumstances.
Moreover, it is crucial to understand that “up to” does not mean guaranteed. It is simply the maximum amount that the bank offers.
Incentives
You can customize your debit card with a photo. Also, you will get cashback for shopping online or on the high street. You will also get a free one-year subscription to Perlego. Perlego is an online library that provides unlimited access to more than 400,000 academic and non-fiction books.
With a Barclays student account, you can make mobile payments with Apple pay and send, request, or spend money using Pingit.
Santander
Santander provides one of the best student bank accounts in the UK. To apply for this account, you should be 18 years of age or older and enrolled in a higher education or higher apprentice institution. Also, you should not have an existing current account with the bank. If you do, you will have to transfer it to a student account.
Here is what Santander offers:
- Account type: 123 student current account
- Overdraft fee: zero percent
Arranged overdraft limit
The maximum overdraft limit is £2,000. When you open an account, you will receive an overdraft limit of £250. To increase it to £1,500, you will need to apply for online banking and pay at least £500 every term. When you meet these terms, the bank will increase the limit as follows:
| Year of Study | Arranged Overdraft Limit |
| 1, 2, and 3 | £1,500 |
| 4 | £1,800 |
| 5 | £2,000 |
Monthly interest
Your account balance of up to £2,000 will earn a monthly interest of one percent annual equivalent rate (AER).
Incentives
One of the perks of a Santander student account is the free 16-25 rail-card. The card could help you save about a third of your rail expenses when travelling in England, Scotland, and Wales. You will also get exclusive deals when eating out or during holidays.
Another benefit that you will get is the chance to earn up to 15 percent cashback on retail offers with your Santander debit card.
You can apply for a student account online. Keep in mind that Santander provides mobile banking, mobile payments with Paym, and contactless payments.
RBS
RBS is another financial institution that allows students to open current accounts. To be eligible for a student account you must be 17 years and over and living in the UK. Additionally, you should be undertaking or completing a higher education course. You can also apply if you are starting your course within the next six months. Students can make applications online.
RBS will give you the following:
- Account type: student account
- Overdraft fee: zero percent
Arranged overdraft limit
The maximum arranged overdraft limit is £2,000. To get an overdraft, you must be 18 years and above. You should also have lived in the UK for three years or more.
After the bank approves your overdraft application, you will have access to a limit of £500 in the first term of year one. Afterward, you can apply to increase the limit to £2,000. The overdraft limit that you get is subject to lending criteria.
Incentives
RBS offers three perks. However, you can only choose one. Below are the incentives that you can pick.
- One-year Amazon Prime membership.
- Four-year tastecard membership. Get two for one or 50 percent off your bill at thousands of UK restaurants. You will get cinema discounts, as well.
- A four-year National Express coachcard where you will save a third off your fares. You will also receive 15 percent off fares to festivals and events.
Another perk from RBS enables students to withdraw up to £130 without a card every 24 hours at an ATM. As long as you are within your daily withdrawal limit, this benefit should work just fine.
Fees
International students have to pay a monthly fee of £10 for a student account. However, UK students get the account at no fee.
Nationwide
Nationwide is a building society that offers a student account. You can apply for a student account if you are 18 years and over and have been accepted to a full-time UCAS course. Also, you are eligible if you do not have another student account.
You should send your application no more than five months before your course begins or no more than two months after your course starts. This instruction applies to students with unconditional offers.
Here is what Nationwide offers:
- Account type: FlexStudent
- Overdraft fee: zero percent
Arranged overdraft limit
The maximum overdraft limit is £3,000. When you get an account, Nationwide will allow you to have an overdraft limit of £1,000. The limit will grow by £1,000 each year to a maximum of £3,000, as long as you pay £500 every term.
| Year of Study | Arranged Overdraft Limit |
| 1 | £1,000 |
| 2 | £2,000 |
| 3 | £3,000 |
Nationwide does not offer any incentives. But it makes up for this by guaranteeing the full overdraft amount.
Students with a Nationwide debit or credit card can pay for commodities using Apple Pay, Samsung Pay, and Google Pay.
Online application is available.
Lloyds
Lloyds Bank has set aside a current account for students to manage their finances. Students can apply if they are 17 years and above and studying a full-time course of at least two years. Alternatively, you can apply if you are on a one-year full-time course that will lead to a degree.
Students are only eligible for this account if they have lived in the UK for at least three years. Also, applications are available online.
Here is what you will get with Lloyds:
- Account type: student current account
- Overdraft fee: zero percent
Arranged overdraft limit
The overdraft limit is £2,000. Below is a breakdown of the overdraft limits by year.
| Year of Study | Arranged Overdraft Limit |
| 1 (6 months from opening account) 7-9 months from opening account 10-12 months from opening account | £500 £1,000 £1,500 |
| 2 | £1,500 |
| 3 | £1,500 |
| 4-6 | £2,000 |
You have to be 18 years and above to apply for an overdraft.
Incentives
When you use the Lloyds debit card, you will get up to 15 percent cashback on everyday offers. Furthermore, you can round off card payments to the nearest pound, and the bank will save the difference.
Lloyds also offers a free TOTUM card, valid up to three years. The card gives students access to more than 200 UK discounts and 42,000 worldwide discounts.
You can manage your money through a contactless debit card or mobile payments with Apple and Google Pay. Additionally, you can withdraw up to £500 per day from any Lloyds cash machine in the UK.
With any of these best student bank accounts, you can seamlessly manage your money. Additionally, the incentives will enable you to enjoy travelling around the UK, shopping, and eating out. Note that incentive offers might not be available at all times.
The conditions for opening an account with these banks as an international student could be different. Therefore, contact the bank for more information if you cannot find it on the website.
FAQs
What bank is the best for student accounts? ›
- Best for college students: Chase College Checking℠ Account.
- Best for teens: Capital One MONEY Checking Account.
- Best for rewards: Discover Cashback Debit Account.
- Best for saving: Bank of America Advantage SafeBalance Banking®
Here are our picks for the best national banks of 2022-2023: Chase Bank: Best overall. Citibank: Best rate. PNC Bank: Best combo checking/savings account.
Do colleges look at student bank accounts? ›Verification doesn't necessarily check the student's or parent's bank accounts. Rather, the school will ask for documentation to clarify information provided in the form. These documents can include income tax returns, W-2 forms, and 1099 forms.
Is Chase or bank of America better for students? ›Best Overall Chase
Chase offers a wide range of bank account options for both college and high school students with no fees while in school, no minimum balance, and access to nationwide ATMs. Chase is one of the largest banks in the U.S., with branches and ATMs available nationwide.
- Low or no opening deposit requirement.
- No monthly maintenance fees.
- No balance requirements.
- No direct deposit requirements.
- Online and mobile banking options.
- A nationwide or international account and ATM/branch access, if needed.
- No ATM fees.
- A large and widespread ATM network.
Chase further offers better options for kids and those who don't qualify for free checking accounts. For entrepreneurs, gig workers and other individuals without regular direct deposit income, Wells Fargo offers a solid option for free checking.
Which bank is most trustworthy? ›The Lifestory Research 2022 America's Most Trusted® Bank Study found Chase the most trusted bank. The America's Most Trusted® Study is a large-scale survey of consumers in the United States that seeks to identify the brands that people trust the most within their respective industries.
Who is the number 1 bank in America? ›1. JPMorgan Chase. Chase Bank is the consumer banking division of JPMorgan Chase. It currently has more than 4,700 branches and more than 16,000 ATMs.
Who is the best bank to open an account with? ›- Best overall rate: Heritage Bank.
- Best for no/low fees: NBKC Bank.
- Best for members of the military and veterans: Navy Federal Credit Union.
- Best for mobile app and high-yield rate: Ally Bank.
- Best for unlimited ATM fee rebates: LendingClub Bank.
...
Average savings by education level.
| Education | Median bank account balance | Mean bank account balance |
|---|---|---|
| Some college | $3,900 | $23,550 |
| Bachelor's degree | $15,400 | $78,890 |
How much income is too much for FAFSA? ›
There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens on October 1st for the following school year.
How far back does FAFSA look at bank accounts? ›FAFSA – 2 Year Lookback
FAFSA looks back 2 years to determine what your income will be for the upcoming school year. For example, if your child is going to be a freshman in college in the fall of 2020, you will report your 2018 income on the FAFSA application.
- High monthly fees.
- $3 fee at non-Chase ATMs in the U.S. for basic checking accounts.
- Low rates on CDs.
- Low rates on savings.
One of the main benefits of the Chase Freedom® Student credit card is that you don't need a substantial credit history with a high credit score to qualify. Since the Chase Freedom® Student credit card is a starter credit card geared toward students, you'll need only a FICO credit score of 660 or higher.
Should I switch from Bank of America to Chase? ›Overall, if you're choosing between Chase and Bank of America, the better option for you will really depend on your personal banking needs and preferences. Both are big banks with thousands of branches and tens of thousands of ATMs. Chase offers a wider variety of accounts, though it is lacking in IRA options.
Should I have 2 student bank accounts? ›Although you can have multiple current accounts or savings accounts, usually a condition of receiving the perks of a student account is that you pay your student loan into that account. Banks regularly check to see that this is happening. For that reason, you're unlikely to be allowed more than one student account.
How much money should I have in my checking account as a college student? ›If you're on top of your budget and not overspending, Steinberg recommends college students keep around one to two months worth of their income in checking and put everything else in a high yield savings account or a retirement fund.
Is Chase a good bank for students? ›The Chase College Checking account can help college students avoid pesky monthly maintenance fees and even let you earn $100. Account holders have the flexibility to bank online, with a top-rated mobile app and Zelle access, and at over 4,700 branches in over 30 states.
Why is Chase good for students? ›The Chase Freedom® Student credit card earns 1% cash back on purchases. Plus, if your account is in good standing, you may also qualify for an extra $20 after each account anniversary for the first five years. And while student credit cards aren't known for handing out sign-up bonuses, this one does.
What are the cons of Wells Fargo? ›The main drawback we see with Wells Fargo are the low APYs on most accounts — if you're looking to earn money through interest, this is not the bank for you. Wells Fargo should also be avoided by people who struggle with overdraft fees. The standard overdraft fee is $35 at a max of three a day.
What is a better bank than Wells Fargo? ›
The bottom line: Chase is a better choice for savings and CDs, but Wells Fargo has easily manageable checking options.
Which US bank is safest? ›- JPMorgan Chase.
- U.S. Bank.
- PNC Bank.
- Citibank.
- Wells Fargo.
- Capital One.
- M&T Bank Corporation.
- AgriBank.
- Chase.
- Capital One Bank.
- Citibank.
- Bank of America.
- U S Bank.
- Union Bank.
- SunTrust.
- Bank of the West.
Jana Small Finance Bank offers interest rates between 4.50% to 7% on various amounts. The interest rates with the are provided below, effective as of November 15, 2022.
What bank do rich Americans use? ›Bank of America, Citibank, Union Bank, and HSBC, among others, have created accounts that come with special perquisites for the ultrarich, such as personal bankers, waived fees, and the option of placing trades. The ultrarich are considered to be those with more than $30 million in assets.
Which banks are too big to fail? ›- Bank of America Corp.
- The Bank of New York Mellon Corp.
- Citigroup Inc.
- The Goldman Sachs Group Inc.
- JPMorgan Chase & Co.
- Morgan Stanley.
- State Street Corp.
- Wells Fargo & Co.
United States: JPMorgan Chase, Wells Fargo. United Kingdom: HSBC, Barclays. China: Industrial and Commercial Bank of China (ICBC), China Construction Bank. Japan: Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group.
What's the easiest bank to open an account with? ›- Easiest account to open — Revolut.
- 2nd-easiest account to open — Chime.
- 3rd-easiest account to open — Capital One.
- 4th-easiest account to open — Current.
- 5th-easiest account to open — Wise.
- 6th-easiest account to open — Majority.
- FAQ about online banking.
- TD Bank. ...
- United Bank. ...
- Synchrony. ...
- Chase Bank. ...
- Axos Bank. ...
- Ally. ...
- Wells Fargo. In addition to the basic info, Wells Fargo requires new members to make an opening deposit of just $25. ...
- Online Features Make Everything Simpler. All of the banks that make the easiest-to-join list tout online banking features.
Ally Bank offers a checking account that doesn't have a monthly maintenance fee or a minimum opening deposit. It also pays 0.1 percent APY on balances less than $15,000 and 0.25 percent APY with a minimum daily balance of $15,000.
What is a reasonable monthly allowance for a college student? ›
According to Admissionly, depending on how strictly your student budgets, their average monthly spending will likely fall between $1,400 and $2,082 for necessity and non-necessity expenses combined.
How much do most parents save for college? ›Americans seek to save $55,342 on average for their child's college expenses. On average, parents expect to pay roughly 30% of their child's college expenses. On average, parents actually pay 10% of their child's college expenses.
Should a college student have their own bank account? ›Being a college student comes with more independence than high school, and with independence comes adult responsibilities. Part of these responsibilities may include paying bills, budgeting, and filing taxes, and all of those are easier when you are in full control of your bank account.
Should I empty my bank account for FAFSA? ›Empty Your Accounts
If you have college cash stashed in a checking or savings account in your name, get it out—immediately. For every dollar stored in an account held in a student's name (excluding 529 accounts), the government will subtract 50 cents from your financial aid package.
Don't worry, this is a common question for many students. The good news is that the Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (plus, it's free to apply).
How much do parents income affect FAFSA? ›The FAFSA formula doesn't expect students or families to use all of their adjusted available income to pay for college. The formula allocates 50 percent of a dependent student's adjusted available income to cover college expenses and anywhere from 22 to 47 percent of parents' available income.
Does having many in your bank affect your FAFSA? ›A nominal value of $200 or $300 may be listed, but there is no reason to include any more cash assets. Cash assets sink financial aid eligibility, but are virtually untraceable unless admitted to on the FAFSA.
What disqualifies you from getting financial aid? ›Incarceration, misdemeanors, arrests, and more serious crimes can all affect a student's aid. Smaller offenses won't necessarily cut off a student from all aid, but it will limit the programs they qualify for as well as the amount of aid they could receive. Larger offenses can disqualify a student entirely.
Should I answer student assets on FAFSA? ›If you (and your spouse or your parents, if applicable) meet certain income and tax filing conditions, you may be able to skip the following questions about assets: Amount in cash, savings, and checking accounts. Other net worth of investments. Net worth of businesses and/or investment farms.
Is Chase or Bank of America better for students? ›Best Overall Chase
Chase offers a wide range of bank account options for both college and high school students with no fees while in school, no minimum balance, and access to nationwide ATMs. Chase is one of the largest banks in the U.S., with branches and ATMs available nationwide.
Which bank is better Capital One or Chase? ›
When it comes to interest rates, Chase only offers a 0.01% APY for both its savings and checking accounts. Capital One, however, offers a 3.40% APY for its 360 Performance Savings Account. Chase's CD rates are also considerably lower than that of Capital One. In fact, Chase's term rates vary from 0.01% up to 4.00%.
What bank is ranked the best? ›- Capital One. Best Customer Satisfaction. ...
- PNC Bank. Best Banking Bundle. ...
- Bank of America. Best Online Banking. ...
- TD Bank. Best Customer Service. ...
- Wells Fargo. Best for In-Person Banking. ...
- Ally Bank. Best Online Bank. ...
- Truist. Best Community-Focused Bank. ...
- CIT Bank. Best for Money Market Accounts.
Is Chase Freedom Unlimited hard to get? You'll need good to excellent credit to qualify for the Chase Freedom Unlimited®. Generally speaking, this is defined as a credit score of 690 or better.
Is Chase Freedom student worth it? ›With its flat cash back rate, the Chase Freedom Student card is a solid choice. It has no annual fee, and you'll earn 1% cash back on every purchase you make, with no limit on how much you can earn, and no points expiration date to keep track of.
Is it easy to get approved by Chase? ›In general, Chase credit cards aren't the easiest to get since most require a good or excellent credit score for approval (700 or more). Most of those requirements are pretty standard, although some credit card companies offer cards to people with lower scores.
What are the disadvantages of Bank of America? ›- Interest rates for savings and CD accounts lag behind other banks.
- $35 overdraft fee can be charged up to four times daily.
- High account balances are required to qualify for Preferred Rewards status.
Generally speaking, Wells Fargo edges out Bank of America on checking accounts, while Bank of America is somewhat better for savings accounts.
Why Chase is better than Bank of America? ›When it comes to savings accounts, both banks offer the same interest rate, but Chase comes out slightly ahead with no initial deposit requirement and a lower monthly service fee (that's also easier to get waived).
Which bank is best for students under 18? ›ICICI Bank, which is one of the leading private banks of India, also offers Savings Account for Minor that helps children learn important money-saving skills at an early age. With its ICICI Bank Young Stars Account, you can open and operate a minor savings account to plan your child's financial future.
What bank is best for a 17 year old? ›- Capital One. Learn More. Capital One Financial (COF) has an account geared specifically for teens. ...
- Chase Bank. Chase Bank. Learn More. ...
- Wells Fargo. Wells Fargo. Learn More. ...
- Union Bank. Courtesy of Union Bank. ...
- USAA. USAA. ...
- Alliant Credit Union. Alliant Credit Union. ...
- Citizen's Bank. Citizens Bank. ...
- Bank of America. Bank of America.
What bank account is best for 18? ›
- Best Overall: Axos Bank First Checking.
- Best for College Savings: Capital One MONEY.
- Best APY: Alliant Credit Union Free Teen Checking.
- Best for Educational Tools: Copper.
- Best for Parental Controls: Chase First Banking.
- Best for Teens From Military Families: USAA Youth Spending.
Although you can have multiple current accounts or savings accounts, usually a condition of receiving the perks of a student account is that you pay your student loan into that account. Banks regularly check to see that this is happening. For that reason, you're unlikely to be allowed more than one student account.
Is Chase Bank good for 18 year olds? ›You can open a Chase First Checking account for your child who is 6-17 years old. Once the child has reached the age of 18, Chase may recommend they open their own account.
How much do most 18 year olds have in their bank account? ›How Much Money Does an Average 18-Year-Old Have In Their Bank Account? Now that assumes full-time work and little to no financial responsibility. In reality, the average teen likely has far less than 1,000 in their savings. For comparison, the average adult has around 5,300 in savings³.
What type of bank account is best for a 16 year old? ›Prepaid cards & bank accounts for kids
If you have kids under the age of 18 then a card could be a great alternative to cash to teach them how to spend wisely. There are two main alternatives – prepaid cards or debit cards that come with children's bank accounts.
How do I open a bank account for a teenager? Teens 13 - 16 years old need an adult co-owner to open this account. Ages 13 - 17 must open at a branch and bring a state-issued ID or passport.
Which bank is good for a 16 year old? ›The best teen checking accounts come from Alliant Credit Union, Capital One, Navy Federal Credit Union and Connexus Credit Union. Chanelle Bessette is a personal finance writer at NerdWallet covering banking.
What are the cons of Chase college account? ›Cons of Chase College Checking
If you want a checkbook to make check payments, this comes with an additional fee. Chase College Checking accounts don't pay interest. If you use a non-Chase ATM, you will be charged ATM fees, and Chase bank doesn't offer ATM fee reimbursement like some banks do.
The best checking accounts for March 2023
Best overall rate: Heritage Bank. Best for no/low fees: NBKC Bank. Best for members of the military and veterans: Navy Federal Credit Union. Best for mobile app and high-yield rate: Ally Bank.
Opening more than one bank account
Usually the terms and conditions of your student bank account won't allow you to open multiple student accounts but there's nothing stopping you from using another current account for your day-to-day spending.
What is the best bank in America? ›
- Chase Bank.
- Bank of America.
- Citibank.
- Wells Fargo.
- U.S. Bank.
- PNC Bank.
- Truist Bank.
- Goldman Sachs.