Student Bank Accounts 2025: Which One Is Right for You?

If you’re heading to university this year and looking to set up student bank account – we have you covered. 

A student bank account is a special type of current account that is designed for students in higher education in the UK. 

Unlike normal current accounts, student bank accounts come with extra perks that can help you manage your money while you study. Each major bank offers its own benefits such as interest-free overdrafts or discount of student railcards.  

There are lots of student bank accounts to choose from, so it’s best to do you research before deciding which one is right for you. It’s always worth comparing what different banks are offering you and chatting to a representative from the bank before signing up. 

If you are asked to provide a proof of study letter to open your bank account or exempt yourself from council tax, you can request this on the student hub’s website. 

To open most student bank accounts, you will need to be a UK resident. If you are an international student, check out our advice on how to open a UK bank account.  

  
5 of the Best student Bank Accounts in the UK 

Santander 

• 0% overdraft of £1500 for the first 3 years, £1800 for year 4 and £2000 if you stay on for year 5 (provided you register for online banking and pay in £500+ every four months). 
• Free 4-year 16-25 railcard (worth £100)  

If you travel by train frequently, this is your best option. A 16-25 railcard can save you on average £167 per year.   

Nationwide 

• £100 cash and a £10 Just Eat voucher every month for a year. 
• 0% overdraft of £1000 in the first year, up to £2,000 until the end of year two, and up to £3,000 in years 3 and beyond  

The £100 is paid into the account within 14 working days of depositing your first £500+ (by 13^th December 2024) and you’ll receive an email with details on how to redeem the Just Eat vouchers. Vouchers must be claimed within 30 days of the email being sent.  

NatWest and RBS 

• £100 cash and a four-year tastecard  
• 0% overdraft of £500 in the first term, then up to £2,000 until the end of year two and up to £3,250 from years 3 and beyond  

The £100 is paid into the account within 10 working days of the account being opened and you’ll be emailed a code to redeem the tastecard within 5 days.  

HSBC   

• Get a guaranteed interest-free limit of up to £1,000 in your first year, which could rise to £3,000 by year 3.  

How much your overdraft limit will increase to depends on your credit score, and you will need to request an increase from the Bank. 

If you’re still not sure which student bank account to apply for, use the comparison feature on MoneySavingExpert or Save the Student.