Ultimate Guide to Top Student Bank Accounts for 2024 – What You Need to Know

 22nd April 2024

Choosing a student bank account can be a huge decision. With products on the market from so many big players right now, it’s hard to know which student account is best for you. 

Firstly, having a bank account is non-negotiable. With all the fees, finance and grants you’ll need to deal with, it’s imperative that you have somewhere decent to put your money. 

You might already be in possession of a regular bank account, but these tend to differ from bank accounts designed specifically for students. If you don’t open a student bank account, you could find yourself missing out on some serious perks.

Luckily, we’ve done all the leg work, so you don’t have to. 

Below is everything you need to know about student bank accounts in 2024.

Why Should I Open a Student Bank Account?

A student bank account is designed to cater to students’ needs. Most banks recognise that the way students in higher education receive and spend their money is different from that of non-students, who are more likely to have a regular income and financial responsibilities.

While some students may have a steady job alongside their study, it’s likely that they will receive a student loan and/or grant three times a year. This means that payments into the account are expected to be irregular. They may also only pay rent during term-time.

The banks also know students’ spending habits will differ from those in the workforce and are aware that money will be tight around certain times of year. This is why student accounts often come with a 0% interest overdraft alongside other perks.

Going for a student bank account when you go to university is not essential, but these accounts are designed with a student’s needs in mind. Lots of student bank accounts on the market offer “thank you” gifts for setting them up too, so you could be much better off with a student account over any other type.

How to Choose a Student Bank Account

Which student bank account to go for is a choice only you can make. Some might come with great free gifts but offset that scary borrowing fees. Others may seem like a great deal but have limited digital banking tools.

Before choosing a bank account as a student, it’s important to weigh up your needs. Will you be travelling back home a lot or visiting friends at other universities? If so, you might lean towards a bank account that offers a free rail card. Would you rather have other discounts or perks to make your time away from home more enjoyable?

It’s best to consider your priorities before looking at what the banks offer and don’t make any decisions until you’ve compared what’s available.

Student Overdraft Facilities

As mentioned above, a lot of banks offer 0% interest on overdraft fees for their student accounts. This doesn’t mean all of these accounts are equal, as some will offer a lower borrowing amount, and some may start charging interest the day you finish your course. 

Take time to read your overdraft terms before opening an account to make sure you’re happy with them.

As a brief overview, below are some of the most popular student bank accounts with the overdraft details laid out so you can easily compare.

While it might be tempting to open a student bank account that offers the biggest overdraft, it’s important to consider what the terms of that overdraft are, and whether you trust yourself to use it responsibly.

You might feel safer with a bigger overdraft option, just in case you need it, but can you be sure you can adhere to the terms of the overdraft?

It’s important to think about how quickly you’ll be able to repay your overdraft once you’ve graduated. Certain careers start of with a low salary, despite a degree. Will this affect how easily you can repay what you’ve borrowed?

For example, the Co-operative Bank gives you a year after your course ends to pay off your overdraft, but the Halifax student bank accounts advertises that the overdraft still runs at 0% for three years after you graduate.

Banking Perks

Most student bank accounts also offer some freebies and other perks to try and encourage you bank with them. They’re hoping to snag you as a customer while you’re a student so that you let them look after your money when you’re making the big bucks after university. 

If all the student bank accounts you’ve narrowed it down to offer pretty similar services and overdraft facilities, the perks might be the deciding sweetener.

Below are all the perks from the nation’s favourite student banking options.

From the list above, it’s easy to see which banks have the most perks, discounts and freebies. This can be another good thing to consider when shopping around for student banking. 

A railcard can be a great option for someone expecting to travel a lot of trains, but cashback might be more useful for someone who has their own transport. It's worth noting that Tastecard offers more than just discounts at restaurants; they also provide discounts for cinema trips and attractions, as well as other member perks.

Also, earning interest on your bank balance might seem tempting. Still, when you work out how much you could get over the course of university, you might find you’d prefer a discounted gym subscription after all.

Digital Banking Tools

In a digital age, it’s really important that your bank account can keep up. While you might not give digital tools a second thought when you open your bank account, you might find yourself missing out when you see what your friends’ student accounts can do.

Here’s a quick rundown of the digital banking tools all the student accounts mentioned above have on offer:

Customer Support Services

All of the banks mentioned above offer easy-to-access customer support services via the app, online or on the phone. Some banks have branches in major cities, too, but it might be worthwhile to check this if you prefer to do in-person things. 

If speaking to staff at a branch is more your thing, it might also be worth checking whether there is a branch in your hometown, too. Many banks are shutting down their branches across the country, so if this is a deciding factor, try to find out if your local branch is here to stay.

In Summary

Opening a student bank account when you go to university isn’t necessary, but it can be worthwhile. Student bank accounts are designed to help students manage their money while they study, so they often come with perks such as discount schemes and 0% interest rates on overdrafts. 

It’s best to consider what’s most important to you and choose the account that best meets your needs. 

Not all banks have branches in every town or city, so if you prefer to ask questions and make changes in person, check whether your local branches at home and university are still open.

Once you’ve chosen which student bank account you’d prefer to use, double-check the terms on things like overdrafts and perks to ensure you’re happy to proceed.