How to open a student bank account

Whether you’re a local or international student in the UK, it’s important to start learning how to manage your money properly - especially if you start working. Get more information about money saving tips for students here.

Your first step to success is opening a student bank account that works for you. In this article, we’ll explore everything you need to know about finding the best student bank account for your needs.

How to open a student bank account as a student

Opening a student bank account often comes with benefits and perks, such as an interest-free overdraft or reduced monthly rates. Of course, every student bank account is different so it’s important to do your research and compare a few of them.

In the UK, there are several large banks you can apply to. Here’s a list of some of the main banks:

• HSBC
• Barclays
• Lloyds Bank
• Royal Bank of Scotland
• Standard Chartered
• Natwest
• Nationwide
• Santander

When it comes to opening a student bank account, you’ll have to prove to the bank that you are indeed a student.

Are you eligible to open a student bank account?

If you’re over 17 years old and studying full-time in the UK, you’re likely to be eligible for a student bank account. If you have a conditional offer from the Universities and Colleges Admissions Service (UCAS), then you’ll be eligible for a student bank account.

If you have an unconditional offer or are studying part-time, there may be different requirements, such as providing your A-level results.

The bank will probably ask for proof that you are a student when you try to open a student bank account. The following documents may be requested:

• UCAS status code or confirmation letter
• Student ID card
• Personal ID such as a driver's license or passport

Can you have multiple student bank accounts?

Typically, you can only have one student bank account at a time with a specific bank. You can open a different type of bank account though, such as a current account, which may have different regulations and fees.

You might be able to open another student bank account with a different bank, however, you have to be very careful managing your overdraft so as not to negatively impact your credit score and fall into debt. If you’re unhappy with your current student bank account, know that you can close it and change to a different bank.

How to open a student bank account as an international student

Opening a student bank account as an international student is similar to opening one as a UK resident.

The main difference is that the bank may require more documentation to prove your residency and student status in the UK. Here’s a list of documentation you may need to provide the bank when opening a student bank account:

• Proof of address in the UK
• UCAS status code or confirmation letter
• Passport
• Student Visa
• Secondary form of identification such as a Student ID or driver’s license

Remember, every bank is different and may have different requirements. Our recommendation is to keep all these documents on hand, as it’s better to be over-prepared than underprepared. 

Learn more about driving in the UK as International students here.

Student bank account overdraft explained

One perk of opening a student bank account is that you may be able to get an account with an overdraft that is interest-free.

What does this actually mean? An overdraft allows you to spend money (up to a certain amount) even if you have nothing in the account. Banks often charge hefty fees on overdrafts, so an interest-free overdraft is a good benefit to have. Although it’s not good to accumulate debt all the time, having this overdraft limit can be helpful in emergencies.

Be wary that some banks will have different student bank account overdraft options. Generally, there are two types of overdraft. They are as follows:

• Arranged overdraft - this is an amount pre-arranged with your bank that you’re allowed to ‘borrow’
• Unarranged overdraft - this is an amount that has surpassed your agreed overdraft amount and could be subject to fees

Comparison of student bank accounts in the UK

We understand that it can be intimidating to start banking in a new country, so it’s a good idea to compare student bank accounts and their offers first to ensure you get the best deals. We’ve explored a few options in the table below.

The requirements for an international student may vary between banks. Luckily, there are some international student bank accounts in the UK you can explore. Remember to always read the terms and conditions before applying for a student bank account, and don’t be afraid to ask any questions. 

The process might looks complicated, but definitely will easier your future academic life. Explore more about Uni scholarships for international students.

Student credit cards

Nowadays, there are credit cards specifically available to students. These credit cards can be given without a long-term credit history for those wanting to start building their credit scores.

Student credit cards work like normal credit cards and often have no annual fee and a low credit limit. The requirements for getting a student credit card may be a bit stricter than opening a general student bank account, for example, you may need to prove that you have a regular income besides a student loan. 

Most student credit cards will have a predetermined limit to avoid overspending and could be subject to high interest rates or repayment fees. There are some useful budgeting apps for students to avoid Impulse buying. 

If you’re considering a student credit card, make sure to do your research beforehand and understand the implications of falling into debt. 

Now that you have a good idea of how to open a student bank account, you can enjoy your newfound freedom as a student in the UK. In the process of looking for accommodation? We’ve got you sorted at iQ Student Accommodation - visit our website for information on our locations.