Common conditions to be aware of
High street student bank accounts are usually only available to full-time higher education students, so if you’re in further education (post-compulsory education at pre-degree level) you may not be eligible.
When you open a student account, most banks specify that you must use it as your main current account, and that your student funding must be paid into it. In other words, you can’t have more than one student account (although you could, for example, have a separate savings account).
If you’re an international student studying in the UK you may be able to get an account tailored specifically to you, but these are less likely to offer forms of credit such as overdrafts or credit cards.
Choosing the right bank for you
Banks put a lot of effort into attracting students, because many continue use that company for the rest of their lives – so do your research and don't get swayed by the free gifts alone.
People often ask NUS which bank we recommend. We don't make any recommendations, but we do advise you to consider these factors when you’re deciding which bank to go with:
- Convenience and service: some banks have branches on campuses, others nearby. If you like banking in person, check out where your nearest branches will be. Remember that some banks can be thin on the ground in some parts of the country. If you prefer online or telephone banking, investigate how good the bank’s service is, and whether it meets your needs.
- Overdrafts: a generous overdraft limit that’s interest-free while you study is usually the key attraction of a student account. Some banks offer more than others, and often the interest-free limit rises with each year of study. A good overdraft can be really useful while you study because money may be tight – but don’t forget you have to pay it back eventually. Check out the bank's policy about repaying this money after graduation, and also when the interest-free limit will be reduced – this often happens in stages in the years after you graduate, but you don’t want to get a nasty surprise.
- Credit services: many student bank accounts give you a credit card or other such services. These can be useful, but be careful because of course you’ll have to repay the money, and the interest rates will be far higher than for most other forms of borrowing.
- Interest rates and other perks: an account might offer additional perks such as preferential savings account interest rates, free travel insurance or cheaper foreign currency exchange rates. Check out what each bank offers, what the conditions are, and consider what will be most useful to you.
- Bank charges: although charges have become more transparent and less costly in recent years, unauthorised overdrafts, using foreign cash machines and so on can still cost you more than you’d like. Look at the bank's charges policy and at least be aware of the costs you may incur.
- Ethics: finally, like many other students you may want to choose a bank that has a strong ethical investment policy. Some banks have better reputations than others, so see what they say about where they invest your money.
NUS provides this information in good faith and has taken care to make sure it’s accurate. However, student finance issues can be complicated, and rules change frequently. You should contact the advice centre in your students' union, college or university for support if you’re uncertain or need more help.