Student Accounts
Introduction to student accounts
Here at Studentvalue we understand that managing your finances efficiently is a significant aspect of student life. It is our aim to provide you with important information in order for you to make an informed decision when choosing which bank to use. The majority of banks offer student accounts and here at Studentvalue we have selected a few of the most popular banks and ranked them in alphabetical order. Students should keep in mind that some banks require students to meet certain conditions in order for their application to be accepted and many require students to apply for student accounts within their first year. In no way at all does this site purport to offer financial advice and we encourage all students and consumers who use this site to use it as a guide only and to read all of the terms and conditions of each account before applying.
Compare student accounts
| Bank | Interest | Overdraft limit | Benefits offered to Students |
|---|---|---|---|
  |
0% | £200 interest-free overdraft when you open your account. Opportunity to apply to increase your interest-free limit to £2,000. |
Mobile Banking, Text alerts and access to personal reserve. |
 |
0% | £1400 in year one, rising to £2000 in year three. | £100 cheque guarantee card. |
 |
0% | £500 interest-free overdraft when you open your account, which can increase to £3000. | Overdraft can last up to five years, plus an extra year after you graduate. 25% discount on AA Breakdown cover. |
 |
0% | Up to £2000 | Discounts with both Dell and CDWOW, two years free worldwide travel insurance. |
 |
0% | Up to £1500 tiered interest-free planned overdraft in years one to three, and up to £2000 in years four to six. | Free NUS extra card & YHA membership, 40 free music downloads, access to internet banking. |
 |
0% | Up to £1250 interest-free overdraft in the first year, £1,400 in your second year, £1,600 in your third, £1,800 in your fourth and £2,000 in your fifth. | £100 discount off of selected ASUS laptops, student discount at selected retailers. |
 |
0% | Up to £2750 interest-free overdraft in your first year. | Top up your mobile phone at any RBS or Natwest cash machine. |
 |
0% | Starts at £250 and can increase up to £2000 | In credit rate of up to 5% on balances up to £500 |
Who can apply for a student account?
It really depends on the student account that you are applying for. Each bank has different criteria that you need to meet in order to apply for a student account, however. the general rule is that you have to be a student that is registered to study at a UK University. Another aspect that many students are not aware of is that most banks stipulate that you have to apply for your student account in the first year of study in order to be entitled to one. After you have found the right student account for you, be sure to check the criteria of what is needed to apply for the student account before applying as this can vary.
Student Accounts: Should I just stick with my current bank?
Many students tend to not bother comparing student accounts and instead tend to purchase the student account from the bank with which they are already associated with. You can see examples of this in our student accounts: what other students did section. However, if you do not consider the benefits that student accounts at other banks have to offer, you may be selling yourself short, so it is always a good idea to shop around and see what other student accounts are out there.
What is the most important thing when comparing student accounts?
Most students will tend to base their decision on what student account to go with on the size of the student overdraft offered. Pretty much all of the highstreet banks will provide you with an interest free student overdraft and the larger the overdraft you receive, the less you have to worry about exceeding your overdraft limit and being charged a premium. Many students wonder how you can possibly exceed an overdraft of £2000/£3000, but it is easy to do if you have to buy food, pay rent and purchase your text books all in one term.
Having said all this, the best account for you may not be the one offering the largest student overdraft, but may instead offer other services. You should definitely pay close attention to the services and freebies thrown in with the student accounts as they can save you money in the long run.
All of the different banks will put together a different package of discounts and include them within their student account, for example, many banks offer free student insurance when you decide to opt for their student account.
Studentvalue's student account of the year
The student account of 2011 goes to Natwest's student account due to their incredible customer service and generous student overdraft limits. By allowing students to gradually increase their student overdraft limit, they help students manage their budgets more effectively. They will also send you a unique PIN code in order to draw out £300 in cash if your card gets stolen, all part of their exceptional customer service. They are a deserving winner of the Studentvalue student account of the year award 2011.
Student Accounts: What other students chose
Studentvalue knows that the best advice that you can get as a student is from those students that have already experienced University. Below are the accounts of some of the students that we interviewed....
Joe from Sheffield University
The Student account I went with was Barclays student account. The reason I chose Barclays student account was just because I was with Barclays when i was younger. I Didnt go into my overdraft massively so it wasnt a big issue.
Ben Michell from Leeds University
I went for the Natwest student account because of the rail travel car they used to offer. It was really good to get up to a third off of rail travel so that I could come home more often. I used to be with Santander but switched to Natwest because of the rail travel option.
Holly Turberfield from Manchester University
Im with Lloyds student account because it seemed to have the largest overdraft available for students going upto £1500 at the time, whereas others only seemed to go upto £1000. Although, other accounts like Natwest offered free railcards and things like that I found it too daunting filling out all the forms because I'm lazy like that.
Nuala Maguire from Royal Academy of Dramatic Art (Liverpool)
I have a student account with Lloyds tsb. To be honest I went with Lloyds as I already had an account with them and joined uni very late so it was just easier to change my account than go hunting for the best... but I probably should have opened a second and had two accounts: one for ingoings (eg student loan) and one for outgoings phone bill etc.. but it's ok. Initial overdraft was small though, but I was able to extend the student overdraft as the terms went on.
