Student Overdraft

Starting university is stressful enough without having to worry about whether your money is sat in the right place. From interest-free overdrafts to freebies and rewards, student bank accounts are designed to make your time at uni a little easier. The right account can save you lots of money in the long run, so here’s a guide to help you choose the one for you.

What do you need to open a student account?

As it’s still a bank account you’ll need everything you typically would - proof of address, ID and what not. But there’s a couple more things you’ll need for a student account: Proof of study (typically your unique UCAS code), you need to be a full-time undergraduate student (or starting at least a 2 year course) and you must typically use your student account as your main account.

An important note, and the reason this guide exists, is that you can only have one student bank account, so choosing the right one for you is key.

Top Picks

Ok, assuming you now know that you’re eligible for a student account, here are the top options and what benefits they give you:

Lloyd’s Student Current Account

0% overdraft:

• £500 in the first 6 months
• £1000 from month 7 to 9
• £1500 from months 10 to 12
• £2000 from year 4 to 6

Free £100:

• Must pay £500 by October 31st and you will receive the reward by November 30th

6 sets of £15 Deliveroo vouchers:

• You must qualify for the above £100 cash to qualify for the Deliveroo voucher, and then for each month you make 20+ payments from the account between November 26 and April 26, you will be emailed a £15 Deliveroo voucher the following month. These vouchers expire 30 days after they’ve been sent, so don’t miss out.

If you’re after a steady overdraft and would appreciate a £100 reimbursement after that first rent payment then Lloyd’s is a real no fuss option. Plus, the Deliveroo voucher can make those first 6 months just that little bit easier.

Santander Edge Student

Guaranteed 0% Overdraft:

• £1500 in years 1 to 3
• £1800 in year 4
• £2000 in year 5

Free Railcard:

• Register for online banking and you’ll be sent a railcard code through the online banking.

Free £20+ prize draw

• As long you have opened your account before October 17th, each debit card purchase you make til December 31st, will add 1 entry into the prize draw, up to a maximum of 40 entries.
• 1 debit card purchase will guarantee you £20, but the larger prizes are not guaranteed.

If you’ll actually use the railcard, then 4 years of discounted train travel will save you a fortune, but be aware that you can also just buy a railcard. Overall, with a good overdraft, and a solid perk attached, Santander is a safe all-rounder.

Nationwide FlexStudent

0% Overdraft:

• £1000 in year 1
• Up to £2000 in year 2
• Up to £3000 from year 3 onwards

Free £100:

• Pay £500+ by December 12th

£10 Just eat voucher each month for a year:

• Once you have qualified for the £100 cash, you will receive an email outlining how to get the Just Eat vouchers. You must use each voucher within 30 days of receiving it.

The gradually increasing overdraft is reliable and no-nonsense. If required the £3000 can come in useful, but do your best to avoid getting that deep as you will have to pay it off eventually. The £100 cash will go down a treat in those early days, and the £10 a month in Just Eat vouchers means you basically get a free treat once a month. In addition, Nationwide occasionally rewards their customers with some free money for almost no reason but don’t bank on that coming through.

Natwest/RBS Student

0% Overdraft:

• £500 in the first term
• Up to £2000 from the second term til the end of year 2
• Up to £3250 in years 3+

Free £85:

• Open the account online or the mobile app.

Free four-year tastecard:

• Open the account online or the mobile app.

Another hefty overdraft and the most accessible free perks out of the lot. If you’re unlikely to spend £500 in the initial months, but you’re still looking to grab some free perks, this is a good option.

Conclusion

There are more options out there, such as Barclays and HSBC, but they come without the freebies for now. So if all you’re after is a basic overdraft to fall back on, and you’re not too fussed about the rewards, these are also some reliable options.

At the end of the day, there’s no one size fits all student bank account, and the best choice will depend on how you’re actually going to use it. Whether you plan on making the most of the railcard, or the sound of free Deliveroo is appealing, take the time to compare what each bank offers and think about what matters most to you. A little research now, can save you money, and stress, later.