Student bank accounts

Keep your money simples while you study

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0% overdrafts

Many student accounts come with an overdraft to help you manage costs

Perks for student life

Some accounts offer discounts or perks that fit around student life

Keep on track

A graduate account could help you manage an overdraft after uni

Compare the Market doesn’t currently compare student bank accounts. However, we can help you compare current accounts.

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What is a student bank account?

A student bank account is a current account for people in higher education. That includes undergraduate and postgraduate university courses, and some apprenticeships.

They work just like standard bank accounts, so you can pay money in, take it out when you want to, and make payments. The difference is they may also come with certain benefits tailored to students, the main one usually being an interest-free overdraft.

An interest-free overdraft lets you borrow money (up to your pre-agreed limit) while you’re studying without paying interest on it. However, you may need to start repaying your overdraft once you’ve graduated.

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Am I eligible for a student bank account?

You should be able to open a student bank account if you’re:

Aged 18 or over
On an eligible higher-education course and can provide proof of your offer or enrolment.

Eligibility rules vary by provider. Some banks accept students on post-graduate course, degree equivalent, or part-time courses.

If you’re in Scotland

In Scotland, some students start university at 17. You might be able to open a student bank account early, but most providers won’t offer an overdraft until you’re 18 because it’s a form of borrowing.

If you’re under 18, check the provider’s eligibility rules before you apply.

Banks typically only accept students enrolled on a qualifying full-time course, so part-time students may find it more difficult to get a student bank account.

However, some could make an exception. Check the provider’s criteria carefully to make sure you’re eligible.

What are the benefits and disadvantages of student bank accounts?

Pros

Agreed interest-free overdraft
Many student bank accounts offer this - some give you an overdraft of up to £3,000 during your studies and you won’t have to pay any interest on that overdrawn balance until after you graduate
Potential extra benefits
Deals vary, but you could get extra benefits such as:
- A free young person’s railcard for a 1/3 off train fares throughout Great Britain
- Cashback when you use your card to pay at certain retailers
- Discounts at participating restaurants
- Subscriptions to apps or services

Cons

You'll usually earn less interest
Student bank accounts often pay less interest than regular accounts. This means it might not be the best option for you if you’re always in credit and are hoping to gain interest on your money
Temptation to overspend
Some people may find the interest-free overdraft too tempting and end up borrowing more than they can afford. It’s usually only interest-free up to an agreed limit, and you’ll still need to pay it back.
Potential limitations for international students
If you’re an international student coming to the UK to study, many banks require you to have lived in the UK for a few years to qualify for a student bank account.

Quick tip

After you finish your course, some banks let you switch to a graduate account.

This can extend any interest-free overdraft for a limited time, then the interest-free amount may reduce each year. Always check your provider’s terms.

What do I need to watch out for when looking at overdrafts?

Read the overdraft terms

It’s crucial to check the terms of any overdrafts you might need. Check if the overdraft is ‘guaranteed’ (what you can definitely borrow) or ‘up to’ (what you may be able to borrow). The latter means the bank will decide your overdraft limit after running a credit check.

Typically, banks will let you increase your overdraft limit over the course of your studies. For example, they may offer up to £1,000 in your first year at university and up to £2,000 in your second year.

Check your credit score

Before applying for a new student bank account, it’s a good idea to check your credit score. The bank will perform a credit check on you when you apply for a new student bank account and each time you apply to increase your overdraft.

It’s important to understand how an overdraft can affect your credit score.

Review any fees and charges

You should always stay within your arranged overdraft limit to avoid paying any penalties. Fees may also apply if you keep using your student account after graduating.

Still, it’s always best to understand what happens if you go over your overdraft limit by accident or in an emergency.

Bear in mind...

Having an interest-free overdraft is still borrowing money.

Try to budget so you stay in credit whenever you can and only dip into your overdraft when you really need to, as you’ll have to pay it back after uni.

How to open a student bank account

If you’re eligible for a student bank account, opening one is simple and you can usually do this online or in a branch. To open an account, you’ll need to show:

Proof of identity

Typically, you’ll need one or two forms of ID, such as your driving licence and passport

Proof of address

This could be a utility bill or bank statement. Some banks will want proof you’ve been living in the UK for the past three years

Proof of your student status

This could be your Universities and Colleges Admissions Service (UCAS) status code or a letter from your chosen university confirming your place on a qualifying course.

Once you’ve opened your account, don’t forget to update your information with Student Finance. This will make sure that any student loans or grants are paid into your new student bank account.

Did you know?

You might need to ensure your Student Finance payments come into your student bank account to benefit from any included interest-free overdraft.

When should I open a student bank account?

You can apply to open a student bank account as soon as your A-Level or Scottish Highers results are in, and you have a place confirmed at your chosen university. You may be able to apply up to six months in advance of your course starting if you have an unconditional offer from UCAS.

Many high street banks offer their best deals for students in July and August, in the lead up to new the academic year. So even if you can apply early, you might want to wait until then to compare your options.

Setting your account up before the start of term means you’ll have plenty of time to set up your bank account with your student finance body, as well as arrange any payments for your accommodation, utilities, phone bill and student contents insurance.

It also means you’ll have extra time to take advantage of any exciting freebies offered by your bank.

How to find the best student bank account for you

Compare the Market doesn’t currently compare student bank accounts. However, if you’re ready to explore your options, start by checking...

The overdraft limit

You may need to dip into your overdraft at some point, so finding one with the right limit is key. Overdraft limits usually range from around £1,000 to £3,000, but they can vary depending on the provider and year of study.
You may also need to apply to increase your limit after your first year.
Be careful with these limits. Remember that you’ll have to pay your overdraft back, so it’s best to only use what you need and can afford to repay.

Rewards and gifts

The current accounts market is competitive, so banks are regularly offering incentives to tempt students to open an account with them.
Some student bank accounts offer attractive rewards like free railcards and shopping discounts. But make sure you don’t sacrifice other important features for the sake of a one-off benefit.

Interest rates

Interest lets you earn money on your balance. It might only be a small amount, but it’s always helpful to have that little bit extra while you’re studying.
While most student accounts don’t pay interest, some do, so it pays to compare rates.
Comparing will help you choose the right account and manage your finances with confidence.

More helpful banking guides

Learn about types of accounts, overdrafts and managing your money

Account types

Switching to a graduate bank account

Move on from student banking with overdraft and budgeting guidance

Everyday banking

A guide to online banking

Bank online safely with tips on access, fraud risks and app security

Overdrafts

How do overdrafts work?

See how overdraft limits, fees and repayments work before borrowing

Everyday banking

What do you need to open a bank account?

A little preparation can make opening an account easier

View all current account guides

FAQs

What are the best savings accounts for students?

The best type of student savings account for you depends on what you’d like to get out of it. You can choose from:

Regular savings accounts: typically offer favourable rates but there may be rules on how much you can put in and take out.
Easy-access savings accounts: useful if you want to withdraw your money whenever you need it.
Fixed-rate savings accounts: offer predictable interest rates if you can put your money away for a fixed time.
Cash ISA: you can save £20,000 a year tax-free. From 6 April 2027, the amount you can put into a Cash ISA will be capped at £12,000 a year if you’re under 65.
Lifetime ISA: save up to £4k a year and get a 25% government top-up towards your first home or retirement from when you turn 18.

Will I get the maximum student overdraft?

To see if you’ll get the maximum student overdraft, check to see if it’s ‘guaranteed’ or advertised as ‘up to’.

Guaranteed means you’ll get the full amount advertised if you meet the terms of your account
Up to means you’ll need to undergo a credit check to determine your personal limit.

It’s well worth shopping around to find the student overdraft that works best for you.

What happens if I exceed my overdraft?

Your bank will report any use of an unarranged overdraft to the main credit reference agencies. If you stay over your limit for more than 30 days, charges may apply and it will have a negative impact on your credit score.

An overhaul to overdraft rules in 2020 means banks can’t charge more for unarranged than arranged overdrafts. They also can’t apply daily or monthly fees. Instead, they now charge a single Annual Percentage Rate (APR).

That may seem like good news for students but remember, the way you handle your overdraft now could affect your ability to get credit in the future.

What happens to my student current account after I graduate?

After you graduate, your student bank account will likely automatically convert into a standard current account or a graduate account.

You’ll lose access to the perks of your student account, and if you switch to a current account, you might have to start paying interest on your overdraft immediately.

Switching to a graduate account may give you a little longer to pay off your interest-free overdraft. Graduate accounts also often come with enticing rewards, so it’s a good idea to shop around before you switch to make sure you still have a bank account that works for you.

Can I have more than one student bank account?

You’re unlikely to be allowed more than one student bank account.

That's because your student loan payments usually need to come into your student account for you to qualify for the overdraft and any other benefits. Banks regularly check to see that this is happening.

Can I switch my student bank account?

It’s possible to switch your student bank account. Have a look for bank account deals open to students at any point in their studies, rather than those specifically for people in their first year.

Find out more: switching bank accounts.

Can I get a student bank account with bad credit?

A bad credit rating is likely to significantly impact your ability to get a student bank account.

However, you might be able to apply for a regular bank account. Have a look at our guide to getting a current account with bad credit.

Can mature students get a student bank account?

You usually need to be at least 17 or 18 to open an account, but there’s no maximum age limit. So, as long as you can prove you’re a full-time student, you should be able to get a student bank account.

If you’re a mature student, check the terms of the student account carefully to make sure that it’s worth switching from your current bank account.

Looking for something else?

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Reviewed 11 Jun 2026 by Sajni Shah Personal finance expert

Sajni is passionate about finding money products to help you make great financial decisions. She keeps track of the latest trends and evolving markets to find new ways to help you save money.

Methodology

¹ Based on the % of respondents reporting Compare the Market is their preferred brand in the last 12 months vs. other leading PCWs. Source: Savanta BrandVue Financial Services, National Representative Survey of 12,257 respondents (June 2026)