So you have got into university, something that probably isn’t top of your list is student bank accounts. The bank account you have now possibly isn’t the right option for you when in higher education as it will not have the necessary features required for you when in university. Like an overdraft or freebies that you wouldn’t get if you didn’t switch to a student account.
Getting an overdraft is always a good option. Many student bank accounts offer 0% overdraft. Overdrafts can be scary to many but on occasions it may help your cash flow. Therefore, many banks do offer 0% overdraft, most students aim to get the biggest and longest guaranteed 0% limit, as this will help you throughout your time at university in case loans or accommodation don’t arrive on time or in case you buy too many drinks at the bar one night.
However, other banks offer freebies to try and entice students. The main catch is a free rail card, rail cards are particularly useful for students who are living far away from home. These rail cards offer 1/3 off the usual price.
Many university campuses have a Santander bank on site, this is due to Santander being the most popular student account. They offer an overdraft amount of £1,500 in year 1 to 3 with 0% interest, if a £500 payment is made into the account every term. However, this is usually covered from your loan coming into that account. Santander offer a four year 16-25 Railcard. This is also a big catch as this is usually worth around £90 per year. If you want to view Santander’s student account, click here.
The Co-op bank is also a good account to go for due to the large 0% overdraft limit. Within the first year, it has a limit of £1,400, increasing to £1,700 in year two and then finally £2,000 in year three. To get these increases, you must ask at the start of every year. This bank scores well with customer service polls from students. Click here to view Co-op’s student account.
Nationwide Building Society FlexStudent account also has a large overdraft, although you don’t have to, you can set a lower limit if you prefer. The 0% interest limit entail of £1,000 for year one, £2,000 for year two and £3,000 for year 3. Therefore, this is the bank account with one of the largest overdraft limits. A payment of at least £1,500 per year must be paid into the account, yet, loans will probably cover this. For more information on the FlexStudent account, click here.
Updated on 05/07/17
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