Tuesday 29-11-2022 - 08:30

Like getting your money’s worth? If you’re a student, you should think about setting up a student bank account. 

 

Student bank accounts are simply bank accounts for those who are in Higher Education and offer lots of different rewards that can help and support you through your studies.  

 

As we navigate through a tough winter, it’s important to be smart with your money. Lots of banks offer cash prize perks for those who set up student bank accounts. This blog lists some of the best student bank account deals in 2022. 

 

How do I set up a student bank account?

 

Setting up your student bank account is very similar to when creating up a standard current account. The bank of your choice will require proof of your identity, and this will include: 

 

• One or two forms of photo ID: such as a passport or driving licence
• Proof of address: such as a recent utility bill or bank statement
• Proof of student status: a letter of acceptance from your university, or UCAS offer letter.

 

Many banks offer an easy switch process. To find out more about setting up a student bank account or switching your current one, you should first speak to your bank.

 

Student bank account perks

 

Student bank accounts often come with extra perks. Check out the list below for some of the best student bank account deals in 2022.

Santander 

• Four-year free railcard
• 0% overdraft – Year 1 to 3: £1,500, Year 4: £1,800, Year 5: £2,000

HSBC

• £100 FREE cash. To get it, spend it on the debit card 5+ times in the first 30 days.
• 0% overdraft - Year 1: £1,000, Year 2: up to £2,000, Year 3 and beyond: up to £3,000

Nationwide 

• £100 FREE cash. To get it, credit the account with £500+ by 16 Dec 2022. The £100 is then paid within 14 days.
• 0% overdraft: Year 1: up to £1,000, Year 2: up to £2,000, Year 3 and beyond: up to £3,000

Natwest 

• £80 cash
• Four-year Tastecard (2 for 1 or 50% off your food bill at thousands of restaurants UK wide). 
• 0% overdraft - £500 in term one, then up to £2,000 for the rest of your time at uni

 

RSB

• £80 cash
• Four-year Tastecard (2 for 1 or 50% off your food bill at thousands of restaurants UK wide). 
• 0% overdraft - £500 in term one, then up to £2,000 for the rest of your time at uni

 

Lloyds Bank 

• Cashback when you spend at certain retailers
• 0% overdraft – Year 1 to 3: up to £1,500, Year 4 and beyond: up to £2,000

 

Bank of Scotland 

• Cashback when you spend at certain retailers
• 0% overdraft – Year 1 to 3: up to £1,500, Year 4 and beyond: up to £2,000

 

Halifax 

• Cashback when you spend at certain retailers
• 0.1% interest
• 0% overdraft - up to £1,500

 

Barclays 

• 12-month Perlego subscription worth £12 per month (digital library with over 900,000 textbooks)
• 0% overdraft – Year 1: £500 in term one, then up to £1,000, Year 2 and beyond: up to £1,500 

 

TSB 

• 5% interest on balances up to £500
• 0% overdraft - 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)

 

If you’re already a student and you’ve still not set up a student bank account, you’ve still got time to sign up. You are also able to have both a student and a current account, so you don’t need to worry about swapping these accounts over. Some students tend to open a student bank account with the bank they are currently with whereas other students may look to alternative banks who offer better benefits.

 

What is an overdraft?

 

When you go through all your money, you can borrow money from your bank with additional interest rate. This means you will eventually have to pay the money back at a higher rate. Banks set limits on how much you can overspend. This is called an overdraft. 

 

A huge benefit to most student bank accounts is a 0% overdraft. This means there is no interest on money borrowed through overspending, so you’ll pay back the same amount you borrowed.  

 

However, remember that the 0% interest period does not last forever. Interest charges may be applied to your overdraft after graduating, and you will have to start paying your overdraft back at an inflated rate. Always be cautious about entering your overdraft and consider your overdraft terms and conditions carefully before finalising your bank account choices. 

 

Student bank account resources

 

Best student bank accounts 2022 - free railcard or £3k 0% overdraft - MSE (moneysavingexpert.com)
Best Student Bank Accounts 2022 - Save the Student
Student bank accounts | Compare student accounts | Finder UK

 

This article was contributed by Education President Ben Broadhurst.