Can you switch your student bank account after the first year?

If you have finished your first year of university, you may be able to pick up another bank account perk by switching to a different account. 

Choosing a student bank account may have been one of the first financial decisions you made after accepting your university offer. But you may not have considered switching since then, even though many perks are either one-off cash payments or vouchers that only last a year.

Some student account incentives are worth more than £200. However, switching may involve a credit check, and moving accounts can be more complicated if you're already using your overdraft. 

Here, we explain if it's worth switching part-way through your degree.  

How switching pays off

Banks tend to promote student accounts most heavily to people starting university, so you may not realise that some of the same incentives are available if you switch later in your degree.

The Current Account Switch Service (CASS) told us that 32% of young people would be prompted to switch by cashback or rewards. Thankfully, many of the same incentives available to first-year students are also available to those who switch. 

Santander and NatWest confirmed their student account perks are available to those who switch later in their degree. The terms and conditions for Lloyds and Bank of Scotland also state that their rewards are available to eligible switchers.

Your overdraft is another important consideration. NatWest, Santander, Nationwide and Barclays said that if you switch to them in your second year or later, you can apply for the overdraft available for your year of study, rather than automatically starting with the first-year limit.

Lloyds and Bank of Scotland’s terms and conditions also indicate that later-year students can apply for the higher overdraft available for their stage of study.

• Find out more: how to switch your bank account

Key checks before you make the leap

Before you decide to switch your student account, there are a few things to consider. 

1. Can your new overdraft cover what you currently owe?

If you’re using your overdraft, check whether the limit offered by the new bank will cover the amount you currently owe.

Barclays and NatWest told us that if you have an overdraft with your current bank, the balance can be transferred to your new account, provided your agreed overdraft limit is high enough. This must be arranged before using the CASS.

Nationwide said that you may be able to switch while overdrawn if the amount you owe is within the arranged-overdraft limit it is willing to offer you. If your existing overdraft is higher, your application may be declined.

Santander told us that an overdraft with your previous bank wouldn't move to your new Santander account. You'd remain responsible for repaying the old provider.

Be careful about keeping both overdrafts open. Having access to more borrowing could make it easier to take on debt that you may struggle to repay.

Policies vary, so ask the new bank how it will deal with your existing overdraft before applying.

• Find out more: free debt advice contacts

2. Could switching impact your credit score?

As student bank accounts include an overdraft, any applications will involve a hard credit check which will appear on your credit file. 

Credit reference agency Experian told us that switching student bank accounts could cause a temporary dip in your credit score. However, your score may recover over time if you manage your finances responsibly.

You can help build your credit history by:

• registering to vote at your current address, if you’re eligible
• staying within the overdraft limit
• paying off household bills on time
• paying any credit card or buy now, pay later balances on time.

Find out more: how to check your credit score for free

3. How will you prove your student status?

You will need to provide evidence that you’re a student when you apply.

Depending on the bank, you may be asked for your UCAS details, a four-digit UCAS status code or confirmation from your university. Check what your chosen bank requires before you begin your application.

• Find out more: how to check your credit score for free

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Which student bank accounts offer rewards to switchers?

Among the leading student accounts we examined, Lloyds and Bank of Scotland offered the highest-value advertised rewards available to eligible switchers. The rewards available at the time of our research were:

• Lloyds and Bank of Scotland: £100 cash and £120 in Deliveroo vouchers (paid over six months) and 15% cashback at selected retailers
• NatWest: £100 and a four-year Tastecard (worth £79.99, saves 25% or 2-for-1)
• Santander: four-year Railcard (worth £115) and cashback through Santander Boost. 

However, if you have previously held a student account with Lloyds, Bank of Scotland, or Halifax, you will not be eligible for the rewards from either Lloyds or Bank of Scotland. 

NatWest also told us that you wouldn't be eligible for its incentives if you had received a previous reward from NatWest since July 2022.

• Our expert has rounded up all the latest deals. Find out more: best student bank account freebies

Top tips for a simple switch

1. Update your student finance provider with your new account details at least four working days before your next payment is due.
2. Tell your employer, university or bursary provider about your new details, even though payments sent to your old account may initially be redirected.
3. Check how you will repay your old overdraft before starting the switch.
4. Update any subscriptions you have with your new bank details. Direct debits and standing orders will be moved automatically through the CASS, but recurring card payments, such as Spotify or Netflix subscriptions, may not.
5. Add your new card to your Apple Pay or Google Wallet.
6. Keep a copy of the incentive terms in case you need to show you met the qualifying conditions.