The best student bank accounts will let you transfer money, offer an interest-free overdraft, and provide additional discounts to help lower your expenses – while you focus on pursuing higher education.
Every year, providers roll out the red carpet for students, enticing them with free railcards, cashback, retail offers, food discounts and attractive overdraft options.
While these perks are a welcome bonus, it’s necessary to make sure that the account you choose boosts your savings and suits your circumstances.
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At a time when the cost of living is already making a dent in student budgets, it’s important to make the most of every opportunity and cut unnecessary costs.
If you or a family member is heading off to university, we explain how to pick the best student bank account.
The best student bank accounts
Santander Edge Student
Heading to university far from home? The Santander Edge Student current account is an attractive option as it gives you a free four-year railcard (otherwise £115). This means you get a third off rail tickets when travelling across the UK (except for Northern Ireland) over the course of your studies.
On top of that, you’ll receive an interest-free £1,500 overdraft for three years, as long as you pay in at least £500 a term. The overdraft rises to £1,800 in year four and £2,000 in year five.
One of the biggest offers coming from Santander is its prize draw, where one lucky winner can get £100,000. Every eligible student will get at least £20, but higher cash prizes ranging from £100 to £10,000 are up for grabs.
To be eligible, you will have to open or transfer to a Santander Edge Student current account between 21 July and 17 October 2025, and make a debit card purchase by the end of this year.
The account also comes with access to a 5% regular savings account when you pay in up to £200 each month for the first 12 months.
Nationwide FlexStudent
If you’re starting university this year, the Nationwide FlexStudent bank account is offering a host of perks, provided you open the account before 12 December 2025.
Students can avail a guaranteed 0% £1,000 overdraft in their first year, and ask to increase the overdraft limit to £2,000 in the second year, and £3,000 in the third.
You'll need to pay in at least £500 each term, keep up with any bill payments, maintain a good credit record and stay within your arranged overdraft limit.
You can also get a £100 cash bonus and a total of £120 in Just Eat vouchers (£10 voucher every month for 12 months). If you refer two freshers, you could get a further £40 (two lots of £20) in Just Eat vouchers.
The account offers you fee-free spending when you use your debit card abroad while on holiday, gives you access to member-only products – like the 6.5% Flex Regular Saver – and you could also be eligible for the £100 Fairer Share payment, which the building society has paid out for three years in a row.
NatWest Student
The NatWest Student bank account comes with a 0% overdraft of up to £2,000 from year one (limited to £500 in the first term), and up to £3,250 from year three.
You can get an £85 cash bonus and a free four-year tastecard (otherwise worth £79.99 per year). It gives you 25% off the total bill, two-for-one meals or 50% off food, and 25% off barista-made drinks, at thousands of restaurants and coffee shops across the UK.
Lloyds Bank Student Current Account
With Lloyds Bank’s student current account, you can get an arranged overdraft of £1,500 for years one to three, and then up to £2,000 in years four to six. You also get up to 15% cashback at certain retailers.
From 1 August, any student who opens a new Student Account with Lloyds can get a £100 cash bonus and up to £90 in Deliveroo vouchers.
HSBC Student Bank Account
HSBC’s student account offers a £1,000 interest-free overdraft in the first year and then, depending on your credit record, you can apply to increase it to £2,000 in year two and £3,000 in year three. Beyond the overdraft arrangement, you can access its 5% regular savings account if you save anywhere between £25 and £250 each month for a fixed 12-month period.
Bank of Scotland Student Current Account
If you open a Bank of Scotland’s Student Current Account between 1 August and 31 October 2025, you can get £100 in cash and up to £90 in Deliveroo vouchers. You can also apply for an interest-free arranged overdraft of up to £1,500 in years one to three and £2,000 in years four to six.
Plus, you can receive up to 15% cashback with its Everyday Offers at some retailers, and it lets you ‘Save the Change’ by rounding up your transactions to the nearest pound and putting the difference in a nominated savings account.
Halifax Student Current Account
From 1 August, Halifax’s student account is offering an increased interest-free overdraft amount of up to £1,500 in years one to three, and up to £2,000 in years four to six. You can also get £100 cash and up to £90 in Deliveroo vouchers, provided you open an account between 1 August and 31 October 2025.
Additionally, you can receive up to 15% cashback with its Cashback Extras at some retailers, and you can round up your transactions to the nearest pound and put the difference in a nominated Halifax savings account.
Other accounts to consider
While the accounts we’ve mentioned so far are best for maximising interest-free overdrafts and getting freebies on the side, there are a few more that are worth considering. Here’s a rundown of what other major banks are offering.
- Barclays Student Additions Account: Interest-free overdraft of up to £1,500. You can also sign up for Blue Rewards for £5 per month, which gives you better savings rates, cashback on everyday spending, and a free Apple TV Plus subscription.
- Co-op Student bank account: An interest-free overdraft starting at £1,400, and then up to £1,700 in your second year and £2,000 for your third.
- TSB Student bank account: Up to £1,500 overdraft for years one to three, and 5% interest on balances up to £500
Should you prioritise an interest-free overdraft?
The perks offered to students range from free cash to railcards, but don’t be swayed by the freebies. The account needs to work well during university and beyond, so the main thing to consider is how much of an overdraft you’ll need and how long you will need it to be interest-free.
Student bank accounts offer much larger than normal free overdraft facilities to help students through their expensive university years.
Rachel Springall, finance expert at Moneyfacts, says, “Students may be enticed by the free perks on a student account, but it is essential they compare the whole bundle alongside the 0% overdraft in the first instance… It is worth pointing out with all these perks that they are only really good value if used frequently.”
