The Best Student Bank Accounts

Introduction

Heading off to university is an exciting time filled with new experiences, independence, and responsibilities. Before you begin your studies, it’s the perfect opportunity to get your finances sorted. One of the best ways to start is by opening a student bank account. Having a reliable and rewarding student account can help you manage your money more effectively, stretch your budget and even give you access to some brilliant perks. From interest-free overdrafts (a lifesaver when you’re waiting for your next loan instalment) to rewards like railcards and cashback, the right account can make student life a lot easier. Student bank accounts are particularly useful when you’re trying to balance rent, food and fun on a student budget. You’ll usually open a student account after receiving your A-level or Scottish Highers results and confirming your place at university. To help you make the most of your money while studying, we’ve rounded up the best student bank accounts on offer.

The Top Student Bank Accounts

1. Santander Edge Student Account

The Santander Edge Student Account has long been a favourite for students, and it’s easy to see why. One of its standout features is the guaranteed 0% overdraft, which can be a real lifesaver. In your first three years, you’ll have access to an interest-free overdraft of £1,500, with potential increases of up to £2,000 in your final year. This means you’ve got a financial safety net if rent, bills or an impromptu night out leaves you a bit short.

But what really makes this account shine is the free four-year 16-25 Railcard, worth £100. This handy little card gives you a third off rail fare, which is perfect if you need to travel home during the holidays or explore the UK on weekends away. Plus, with our AXO Student Living accommodations located in lively urban areas, a Railcard could help you escape to the countryside for a quick weekend getaway. To secure the Railcard, simply open the account, register for online banking and you’ll receive a Railcard code within five days—just be sure to use it within 60 days!

You can open this account once you’re a first-year student and those starting level 4-7 apprenticeships. Even if you’re already a student, you can switch to Santander if you have at least two years left on your course.

Overdraft:

• £1,500 in years 1 to 3
• £1,800 in year 4
• £2,000 in year 5

2. Nationwide FlexStudent Account

The Nationwide FlexStudent Account is another excellent option, offering a competitive 0% overdraft that increases as you progress through your degree. In your first year, you’re guaranteed a £1,000 overdraft, which can rise to £2,000 in your second year and up to £3,000 by the third year, which is perfect if you need a little extra wiggle room to cover rent or bills.

Nationwide also offers some great perks for new customers. Open an account and deposit £500 by 13 December 2024, and you’ll receive £100 in cash, plus £120 worth of Just Eat vouchers, ideal for those takeaway-fueled study sessions or hangover recovery meals after a heavy night.

To claim these perks, open the account and pay £500 before the deadline. Your £100 cash will arrive within 14 days, and you’ll get an email with instructions on how to redeem the Just Eat vouchers. You’ll need to be enrolled in a full-time UCAS-registered course that lasts at least two years. You can even apply up to five months before your course begins.

Overdraft:

• £1,000 in year 1
• Up to £2,000 in year 2
• Up to £3,000 in year 3+

3. HSBC Student Bank Account

HSBC’s Student Bank Account offers a 0% overdraft, starting at £1,000 in your first year and rising to £2,000 in your second year, with a potential increase to £3,000 in later years. HSBC is a good option if you’re focused on getting a reliable overdraft to help you manage cash flow.

Overdraft:

• £1,000 in year 1
• £2,000 in year 2
• £3,000 in year 3+

4. Co-operative Bank Student Account

The Co-op Bank Student Account offers a respectable overdraft of £1,400 in the first year, which increases to £1,700 in your second year and £2,000 in subsequent years. It’s a straightforward, no-fuss option for those who want a reliable overdraft to help cover rent and living expenses.

Overdraft:

• £1,400 in year 1
• £1,700 in year 2
• £2,000 in year 3+

5. TSB Student Bank Account

TSB’s Student Bank Account offers a flexible overdraft starting at £500 for the first six months, which increases to £1,000 for months seven to nine and up to £1,500 by the end of year three. What’s particularly appealing about TSB is that it offers 5% interest on balances up to £500, making it a great option if you’re disciplined with your money and manage to keep some in your account.

Overdraft:

• £500 for the first six months
• £1,000 for months seven to nine
• £1,500 from year three onwards

6. Monzo

While Monzo doesn’t offer a student-specific account, it’s still a great choice for students, thanks to its modern features. With Monzo, you can set up “pots” for different expenses, helping you save and budget more effectively. This can be really useful when managing your student loan, rent and everyday expenses like food and travel. Monzo also makes splitting bills a breeze with its easy-to-use app.

Conclusion

When it comes to managing your money at uni, budgeting is essential. It’s all about understanding your income, which for most students will include a combination of your student loan, part-time job earnings, support from family, and any grants or scholarships. A good student bank account can help you make the most of your money by providing an interest-free overdraft to smooth over any cash flow issues. But remember, an overdraft is a loan—not free money, and you’ll need to pay it back after graduation, often with interest.

Choosing the right account depends on your individual needs, but accounts like Santander Edge Student and Nationwide FlexStudent stand out for their generous overdrafts and enticing perks. Whether it’s free cash, Just Eat vouchers or a Railcard, these extras can make student life a little easier. 

At AXO Student Living accommodation, we make budgeting even easier by combining all of your bills. From your rent and utilities to WiFi, all bills are inclusive. Secure your spot today for a stress-free way of living at uni.