Student bank accounts are fairly similar to regular bank accounts, however they're set up specifically for university students, and offer several significant benefits which you can use while managing your student finances. Here’s our guide to the benefits of having a student bank account!
Where can you get a student bank account?
Honestly, pretty much all major banks offer them. With so many young adults attending uni, it makes sense for the major banking companies to offer a student account option. Each bank offers a package of student account services with similar terms, and different perks that will be best suited to you based on your own financial circumstances.
There’s no single best choice of bank, and we encourage you to do a decent amount of research and ask for advice before opening a new account. The bank you’re currently using most likely offers student accounts, and if you are pleased with their service so far, it’s a good place to ask for more information.
How do you open a student bank account?
You can open a student bank account as soon as soon as you’ve received your UCAS confirmation letter, and since the process can sometimes take a couple of weeks, it’s a good idea to start early. There are two ways to open your account – in-person at a local branch, or online.
To open an account in-person, you can book an appointment at your local branch, and speak to an advisor who will guide you through the application process. You’ll need to bring your UCAS letter, and a folder of various other documents which will be specific to the bank of your choosing, so it’s a good idea to check their website or give them a call and be sure about what you need to get started.
Most students need some form of photo ID, such as a passport or driving license, and proof of your visa if you are an overseas student. Proof of UK address is also required.
It’s also possible to complete this process online, through the mobile app of your chosen bank. You'll need to submit digital proof of the above documents, as well as perform online ID security checks.
Benefits of a student bank account
Interest-free overdraft
The main benefit of a student bank account is that you’ll probably have an interest-free overdraft. This means that you can arrange an ‘overdraft’ amount, which is an agreed sum of funds that you’re able to access, even when your account has no money remaining in it.
If you’re ‘overdrawn’ then you’re essentially borrowing the bank’s credit. Usually, you’d pay an interest rate on the amount you’re borrowing, but with a student account there’s often no charge for this service as long as you stay within the overdraft limit. Be aware that after graduating, your bank will usually start charging overdraft fees if you've not paid in enough money to get your account out of overdraft.
Free discount cards or subscriptions
Some banks will user special offers or deals to entice you to choose them as your bank. This can include things like cheaper subscriptions to streaming or music services, special rates on travel fares or shopping, and more.
Cashback
Fairly often, banks will credit your account with some money as a sign-on bonus. This amount is usually around £100. Additionally, banks can offer you a rewards program, where you ‘earn’ a percentage cashback when you use their debit or credit card to make purchases from selected retailers.
Learn how to manage your money wisely, with our student finance advice article.