Student bank accounts rated

There will be a long list of ‘To Dos’ to tackle before heading off to college or university this autumn, but getting a decent student bank account should be a priority.

Here’s what you should be looking out for when comparing accounts and a roundup of the best deals on offer right now.

How to shop for a student account

Given that most students will spend much of their degree courses 'in the red', the first thing to look for in a student bank account is a generous interest-free overdraft.

The best accounts offer fee-free, interest-free overdrafts of up to £3,000. However, this upper limit usually only applies to year three (or year four if your degree's a year longer), so it starts off lower and then rises with each academic year.

Also, you must understand that you may not get the maximum overdraft advertised, as your individual limit will be based on your credit score. However, some banks do guarantee to give you this upper limit, so always check whether the overdraft limit on offer with the student bank account is 'guaranteed' or only 'up to'.

Don't be tempted to exceed your overdraft limit without permission. Remember, it's a limit, not a target – and you must pay back all this borrowed money one day. If you do go overdrawn without permission, then you could be charged sky-high rates of interest, plus painful penalties of up to £30 per transaction on top.

After 0% overdrafts, the next features to consider are credit interest rates (how much you'll be paid when your balance is above zero) and freebies, gifts and other incentives.

Convenience does also play a part, with many students signing up to banks which have branches or cashpoints on campus.

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The latest student bank account deals

Here's what's on offer to students today.

We've ranked them based on a combination of any credit interest rate, free overdraft limit and incentives offered, but bear in mind that these may not be the most important factors for you.

Account	Credit interest	0% overdraft	Authorised overdraft	Incentives
Santander 123 Student Current Account	1% on balances above £100, 2% on balances above £200, 3% on balances from £300 to £2,000	Year 1, 2, 3 - £1,500 Year 4 - £1,800 Year 5 - £2,000		Free 16-25 railcard offering a third off rail travel for four years (must register for online banking and pay in at least £500 per academic term to qualify).
HSBC Student Bank Account	2.0% for first year (tracks Bank of England Base Rate + 1.5%) on up to £1,000	Up to £3,000 (£500 formal overdraft limit agreed at account opening)	N/A	£60 Amazon gift certificate (first year students only). Exclusive access to discount website. Commission-free currency.
			N/A
NatWest Student Current Account	None	Up to £2,000 (£500 in first term)	N/A	Free National Express Coach Card offering a third off coach travel for four years (must sign up to receive paperless statements). Access to Cashback Plus rewards scheme.
Royal Bank of Scotland Student Current Account	None	Up to £2,000 (£500 first term)	N/A	Free National Express Coach Card offering a third off coach travel for four years (must sign up to receive paperless statements). Access to Cashback Plus rewards scheme.
Halifax Student Current Account	0.10%	Up to £3,000 (unlikely to go beyond £1,000 in year one)	7.2% on overdrafts over £3,000	Commission-free traveller's cheques and currency. Access to cashback scheme Everyday Offers.
TSB Student Account	5% on balances up to £500.	Years 1-6 - up to £1,500	8.21%, plus £6 monthly usage fee if £10 buffer exceeded.	Money Planner tool to help keep track of finances
Lloyds Bank Student Account	None	Year 1 - up to £1,500 (tiered) Year 2 and 3 - up to £1,500 Year 4+ - up to £2,000	8.21%, plus £6 monthly usage fee if £10 buffer exceeded.	Free NUS Extra card for up to three years providing savings on 170 high street and online brands. Access to cashback scheme Everyday Offers. Option to activate It’s On Us, where each month there’s the chance to be paid back for something you’ve bought up to £500.
Bank of Scotland Student Account	None	Year 1 - up to £1,500 (tiered) Year 2 and 3 - up to £1,500 Year 4+ - up to £2,000	8.21%, plus £6 monthly usage fee if £10 buffer exceeded	Free NUS Extra card for up to three years providing savings on 170 high street and online brands. Access to cashback scheme Everyday Offers. Option to activate It’s On Us, where each month there’s the chance to be paid back for something you’ve bought up to £500.
Barclays Student Additions	None	Up to £2,000 (£500 from when you open the account)	£1 per day on balances over £2,000 up to £3,000	Access to Barclays Blue Rewards. Access to SmartSpend cashback scheme. Personalised debit card.
First Trust Bank Student + Account	None	Up to £1,850	N/A	Commission-free foreign currency.
The Co-operative Bank Student	None	Year 1 - £1,400 Year 2 - £1,700 Year 3+ - £2,000	9.9%

These deals could be altered at short notice

You don't have to stay with your bank

Signing up to one bank's student account does not mean that you have to stick with it for life.

You can switch student accounts from one year to the next, as well as moving to a top graduate account once you've got your degree.

[Compare student bank accounts]