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Student bank accounts
Grab the top overdrafts and freebies in 2022/23
Free 0% overdrafts, free railcards and free cash – banks love to reel in new students with goodies, and this year's no different. This guide's about bagging the best deal.
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What is a student account?

Student accounts are simply bank accounts made for those in higher education. They let you pay money in and out, and offer additional benefits such as an interest-free overdraft.
Usually you'll open one after your A-level or Scottish Highers results have come through and you have a confirmed place at university.
What ID do I need to open a student account?
As with all bank accounts, you'll need proof of address and identity. This can include your passport, birth certificate or current UK driving licence.
In addition, you'll need your UCAS code or confirmation letter with an unconditional offer or, if your offer's conditional, A-level results that meet that condition (or a letter from the university you'll be attending confirming your place). As soon as you've got these, you can open an account, allowing you extra time to make full use of its benefits before the start of term.
Top student accounts 2022/23

With all these accounts you'll usually need to be a first-year student (or about to be one) and have proof of acceptance to a university or further education course, often defined as one lasting at least two years.
Important. All accounts below automatically turn into a graduate account once your course ends, which continues the 0% interest overdraft for a further two or three years – though the interest-free limit drops each year. Remember to check at this point if another top graduate account may beat it.
Top student accounts 2022/23
The only account with a guaranteed 0% overdraft each year, plus get a free four-year railcard. The Santander 123* student account gives a definite £1,500 0% overdraft in years one to three to all accepted (provided you pay in £500+ each term). You can also claim a free four-year 16-25 Railcard (worth £100) which gets you a third off many rail tickets – though it's not valid in Northern Ireland. You'll be sent a railcard code within five days of opening the account and registering for online banking. But it's only valid for 60 days. Do note that you'll need to be a first-year uni student or starting a level 4-7 apprenticeship to apply. (Not in your first year? You may qualify but will need to switch in to this account.) | |
![]() Santander* |
0% overdraft: - Year 4: £1,800 - Year 5: £2,000
Perks: - Four-year 16-25 Railcard |
Higher possible 0% overdraft from year two. The HSBC student account offers a guaranteed £1,000 0% overdraft in the first year, though limits aren't guaranteed in later years – so you'll need to ask for increases (and how much you'll get depends on your credit record). The account's open to first-year under- and postgraduates, and those doing certain BTEC courses. |
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0% overdraft: - Year 1: £1,000 - Year 2: up to £2,000 - Year 3 & beyond: up to £3,000 |
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Joint-highest 0% overdraft – though limits aren't guaranteed. Nationwide's FlexStudent account offers a 0% overdraft that matches HSBC above – starting at £1,000 and rising to £3,000 in year three – although here limits aren't guaranteed in any year. The amount you'll get at 0% depends on your credit record, and you'll need to ask for the increases. To qualify for the overdraft you must pay in £500+ a term (for example, your maintenance loan). The account's open to those on a UCAS-accredited course of two years or more. |
|
![]() Nationwide |
0% overdraft: - Year 1: up to £1,000 - Year 2: up to £2,000 - Year 3 & beyond: up to £3,000 |
Important. You'll need to stay within your overdraft limit. If you exceed it, all these accounts will restrict access until you get the balance back under your limit – so no debit card spending or cash withdrawals. All accounts have full Financial Services Compensation Scheme up-to-£85,000 savings protection, though note HSBC's is shared with First Direct and Santander's with Cahoot – so don't hold more than £85,000 across brands that share this protection.
Other student accounts
These accounts aren't our top picks as the 0% overdrafts are not as generous as the ones above and/or the perks as lucrative.
Next best student accounts
Provider | 0% overdraft amount | Main perks |
---|---|---|
NatWest | £500 in term one, then up to £2,000 for the rest of your time at uni | £50 cash and a four-year Tastecard |
RBS | £500 in term one, then up to £2,000 for the rest of your time at uni | £50 cash and a four-year Tastecard |
Co-op | £1,400 in year one, up to £1,700 in year two and then up to £2,000 for the rest of your time at uni | None |
Lloyds Bank | Up to £1,500 in years one to three, then up to £2,000 | Cashback when you spend at certain retailers |
Bank of Scotland | Up to £1,500 in years one to three, then up to £2,000 | Cashback when you spend at certain retailers |
Halifax | Up to £1,500 | Cashback when you spend at certain retailers, plus 0.1% interest |
Barclays | £500 in term one, then up to £1,000 in the rest of year one; then up to £1,500 for the rest of your time at uni | A 12-month Perlego subscription (worth £12/month) – it's a digital library with over 900,000 textbooks |
TSB | Up to £1,500 (guaranteed £500 for the first six months, up to £1,000 in months seven to nine, and up to £1,500 from month 10) | 5% interest on balances up to £500 |
Ulster Bank | Up to £1,000, or up to £3,000 if you study medicine, dentistry, law, accountancy, pharmacy, optometry, physiotherapy or veterinary science | None |
Table ranked by biggest overdrafts in years one to three. Last updated Jan 2023.

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For that rare student breed: the ones who are always in credit, there aren't many choices (even if you're only occasionally overdrawn, go for the top overdraft deal).
If you don't need your overdraft for the long term, it's worth considering putting your everyday spending on a credit card and repaying it IN FULL every month. Doing so, can help build your credit rating which should mean future borrowing (such as a mortgage) will be easier and cheaper to get. See Student credit cards for full help.
Alternatively (or additionally), if you're super organised and financially disciplined, there is a way to make your 0% overdraft pay you...

Do a budget the right way
It's a mantra parents push at their student offspring all the time. "You've got to do a budget young Johnny, it'll all go to hell if you don't, please do it Johnny, please..."
Yet "do a budget" is a meaningless phrase unless you understand your income.

With people who work it's an easy message:
You shouldn't spend more than you earn.

But when it comes to those going to university, you need to:
Add up student loan + employment earnings + money from family + any grants/sponsorship money, and that is your income.
While 0% overdrafts are very useful and should help with cash-flow issues while you're a student, they're never part of your income. Always remember, an overdraft is a LOAN and must be repaid (its rate will jump once you graduate).
If you're going to university next year or are currently studying, funding is key. Make sure you're aware of the loans and grants available to you and plan accordingly. See our Student loans guide for more on fees and funding.
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