Student Bank Accounts and Credit

Student bank accounts exist because ordinary current accounts will not give an 18-year-old a four-figure interest-free overdraft and the UK's big student accounts compete almost entirely on the size of that overdraft and the freebie they bundle alongside it. That's the one feature that actually matters.

What this pillar covers

The Best Student Bank Accounts guide ranks every UK student account on interest-free overdraft size, eligibility rules and the freebie (railcards, cashback, subscriptions). The Opening Bank Account Checklist walks through the proof-of-address, UCAS-confirmation and ID steps most students trip over when moving to a new city. The Graduate Bank Accounts guide explains what happens to the overdraft the year you leave university.

The one mistake most students make

Treating the overdraft as free money. Every UK student overdraft is interest-free only while you are a student. After graduation it converts to a graduate overdraft with a step-down schedule (typically the limit falls year by year from £3,000 down to £0 over two to three years, with interest charged if you exceed it). Borrow only what you need. Plan to clear it during the first year of your first job.

How to move between accounts

The Current Account Switch Service (CASS) moves everything from direct debits to standing orders in seven working days. It's the only way to switch cleanly if you already have a live overdraft. Pay off what you can first, then switch, some banks will not honour the full interest-free limit if you arrive mid-year already in the red.

Linked pillars

Student Finance covers the loans that pay into the account. Student Budgeting is where we explain how to keep the overdraft untouched for emergencies. Graduate Money covers the year you graduate and the overdraft starts costing interest.