Student bank accounts Student account reviews
Some student accounts offer £3,000 interest-free overdrafts in the first year
Student accounts and interest-free overdrafts
If your outgoings are liable to exceed your income while at university, it's well worth going for the biggest interest-free overdraft possible. The cost of rent, food, books and leisure means the ability to call on extra cash without paying interest can be hugely valuable.
We compared 14 undergraduate accounts - most offered a free overdraft, though we found big variations in the size of the overdrafts each bank offered. The most common free overdraft offered in the first year of study is £1,000. Banks offering this level of overdraft include NatWest, Royal Bank of Scotland, Santander and Smile.
The biggest interest-free overdrafts
Banks offering bigger student overdrafts include Lloyds TSB (£1,500), First Trust Bank (£1,850), Barclays (£2,000), HSBC (£3,000) and Halifax/Bank of Scotland (£3,000).
Other banks aren't so generous - Bank of Ireland offers just a £400 first year free student overdraft, while Clydesdale Bank and Yorkshire Bank don't offer free overdrafts at all.
Student accounts
Our table shows student accounts ranked in order of the maximum free overdraft they allow.
| Provider | Max free overdraft year onea | Max free overdraft year threea | Additional authorised overdraft rate | Access Access help | Customer score Customer score help | Find out more |
|---|---|---|---|---|---|---|
Halifax | £3,000 | £3,000 | 7.20% |
| 53% |  |
HSBC | £3,000 | £3,000 | 3.50%b |
| 57% | |
Barclays | £2,000 | £2,000 | 8.90% |
| 52% | |
First Trust Bank | £1,850 | £1,850 | 0.00% |
| n/a | |
Lloyds TSB | £1,500 | £1,500 | 8.20% |
| 55% | |
The Co-operative Bank  | £1,400 | £2,000 | 9.90% |
| 86% | |
Ulster Bank | £1,250 | £1,600 | Negotiable |
| n/a | |
NatWest | £1,000 | £1,500 | n/a |
| 55% | |
Royal Bank of Scotland  | £1,000 | £1,500 | n/a |
| 54% | |
Santander | £1,000 | £1,500 | n/a |
| 39% | |
Smile | £1,000 | £1,800 | 9.90% |
| 87% | |
Bank of Ireland | £400 | £500 | 0.00% |
| n/a | |
Clydesdale Bank | n/ac | n/ac | 7.49% |
| 58% | |
Yorkshire Bank | n/ac | n/ac | 7.49% |
| 59% | |
Table notes
- a) Depends on your credit scoring
- b) Calculated as 3% above Bank of England base rate
- c) Do not offer free undergraduate overdrafts.
Help
Access
Key:
- Branch
- Internet
- Postal
- Telephone
Customer score
Which? member score based on customer satisfaction and likelihood of recommending company to friend/family member.
Student account charges and fees
If you exceed your free limit, the bank will normally charge interest and/or fees. You'll pay much less (usually 3.5%-9.9%) if you contact the bank and formally arrange for the limit to be increased rather than go over it without telling them. Some banks may allow an extension to your free limit.
If you go over your student overdraft limit without authorisation, interest can rise to almost 30%. Some banks also charge penalty fees - see the table for full details of extra charges.
- For everything you need to know about going to university, check out our expert guide
- Preparing to leave home? Take a look at our guide on getting discounts on products
- Or read our guide on how to find the best laptop
