Best student bank accounts revealed – including £100 free cash

WITH A-level results out the way, banks are working hard to lure students in by offering a host of freebies including free railcards and cash on top of interest-free overdrafts.

While the perks offered this year aren’t as generous as previous years, there are still some freebies for kids and grandchildren to consider. 

Student bank accounts offer larger interest-free overdrafts than normal accounts, with some offering up to £3,000. 

Always consider the best package for you - not just the freebie, experts advise. 

James Andrews, of said: “It’s important not to be overly swayed by the freebies on offer, as while they might be nice at the start, you’ll have to live with the account for three or four years overall.”

How to find the best account

Before applying, consider how long you’ll need an interest-free overdraft.

You will need to pay it off once you graduate.

Andrew Hagger, of said: “Although a zero percent overdraft can be a godsend when you're trying to manage on a tight student budget, it is still a form of borrowing that will need to be repaid at some point.

“Once you start work you'll need to start paying it back - however most banks offer graduate overdrafts where you can gradually repay your student debt for free over a period of two to three years.”

Use a comparison website like and and take a look at our handy table above to compare features. 

Students can apply for an account as soon as their place to study at a UK university is confirmed.

However, most banks ask for students to enrol on to a full-time course. 

Part-time students are less likely to qualify, as they’re often able to work full-time while they study.

James said: “If possible, chat to some current students about what they found most helpful while studying to get an idea what you’re signing up for."

How to apply

You must be over the age of 18 and will usually be required to present your UCAS 12-digit pin to open up one of these accounts.

If you don’t have this to hand most banks will also accept your university acceptance letter.

Lenders will also allow students to apply for these accounts online.

You’ll be expected to upload a scanned copy of your passport or driving licence.

Although on occasion some banks may require you bring these into your local branch.

Find the perfect perk

Banks offer perks to secure new customers, with many going on to bank with their chosen account into early adulthood. 

In recent years many of the best freebies have disappeared or reduced, according to analysis by The Sun. 

Rachel Springall, finance expert at , said: “Student account perks are showing mixed results this year, as some banks have decided to boost their free cash offers, remove perks or even reduce their interest-free overdraft facility. 

“You'll also need to check the accounts that suit your needs in other ways, such as having an app or ATM withdrawal limits, as well the full terms and conditions and eligibility criteria.”

Co-op and TSB offer student bank accounts, but they are among the few not offering any decent perks on top of the interest-free overdraft of up to £2,000 but not until after the first year.

Barclays has dropped its overdraft limit from £3,000 to £1,500 over three years, instead it is offering new customers a free 12 month subscription to Perlego, an online library. 

Lloyds and Halifax are offering up to 15 percent cashback when you shop at certain retailers.

Lloyds also has an interest free overdraft worth up to £2,000 while Halifax offers students £1,500. However, both accounts fall short of offering free cash and other perks.

Natwest and RBS offer an interest-free overdraft up to £2,000 but students will only be able to borrow £500 in the first term.

However, both banks have upped their free cash offer by £20 this year. Students now get £80 in cash plus a free four year Tastecard usually worth £140 over the same period.

HSBC and Nationwide give students the most cash. Both banks will pay £100 when an account is opened.

They’ll also offer the highest arranged interest-free overdrafts worth up to £3,000.

While Santander doesn’t offer free cash it has renewed its offer from last year, giving students a free four year railcard.

Rachel said: “Discount cards are useful for students to save themselves a bit of money when eating out or travelling.

“It’s positive to see Santander upholding its Railcard offer this year and, according to the bank, can save students an average of £636 over the course of the four-year offer.”