The Best Student Bank Accounts for 2016

Everyone gets £250 overdraft, then up to £1,500 in year 1-3 (if you make £500 per term pay-in to the account), the majority of people will get £1200. £1,800/yr4 & £2,000/yr5

It says you must pay in £500 per term to get the freebie.

3% AER / 2.96% gross (variable) interest on balance from £300 up to a maximum of £2,000. 1% on £100+. 2% on £200+. Paid monthly.

£5 daily charge (max 10 days per month) if you’re over your agreed overdraft. £5 for each transaction over your agreed overdraft that gets paid & £10 for those unpaid. Total £95 per monthly statement period.

A reasonable overdraft at up to £1,500 (years 1-3) and a very good freebie that if you plan to travel to uni via train will save you a fortune over the 3-4 years.

If you don’t plan on using the train often then consider HSBC, Halifax or Natwest.

The 3% credit interest on balances above £300 is a nice bonus but you might find you can improve this by placing the money into an ISA instead.

Up to £3,000 overdraft & no overdraft fees. Subject to status and account conduct. Most likely you will be offered a £1500 interest free overdraft.

First year students will receive a free £60 Amazon voucher (before 31/10/2016).

For first year students, the first £1,000 in your Student Bank Account, will earn interest at 1.5% above base rate.
Interest is calculated daily on the cleared credit balance and is paid monthly.

Fees aren’t obvious which annoys us but it appears to be that you can’t go beyond you agreed interest free overdraft aka no fees.

One of the best overdrafts available (once you actually get it), a great freebie that can be spent or sold on for profit + an OK interest rate combined to make one of the top 3 accounts of the year.

If you’re planning on travelling by train or coach the other two accounts probably are worth considering.

We believe the account won’t allow you to go above your agreed overdraft which is a great benefit for students, who generally are all new to budgeting and will often make mistakes.

This is ‘Up to’ so you’re not guaranteed it and will depend on a credit check.

The first year is tiered at £500 in your 1st term then up to £2,000 in your 2nd.

Be aware that you must deposit £750 every 6 months (eg. your maintenance loan) and make at least 3 monthly transactions to get any overdraft at all.

Sign up to online banking and select to receive paperless statements to get this freebie.

Natwest have generally always had a strong offer for students, the coach travel discount won’t be for everyone but it’s very useful if you don’t mind the longer journey times and will actually use it.

The overdraft starts at £500 which is rather annoying but it goes up to £2000 in your second term which is one of the best you can get this year.

£6 for each payment over your overdraft (max £60 per period).

A decent sized overdraft, especially for the 3rd year.

You’ll need to pay in at least £1,500 per year of study* across two or more transactions. This can include your student loan, money from family members or any other income.

A decent sized overdraft, especially for the 3rd year.

Receive 1% AER/gross p.a. (variable) on balances up to £1,000.

The account is designed to prevent you from going over your agreed overdraft limit. However, in the unlikely event that you do go over your agreed limit, they still won’t charge you.

You’ll simply need to bring the balance back within your agreed limit before you can carry on using your account. If you don’t bring it back, you’ll be unable to take cash out, and will be unable to use your card to purchase items (both in store, online and via the telephone).

Nationwide are new to the student market, the overdraft is good to begin with but becomes one of the best at the end of year 3.

The lack of freebies is a shame but the fact the account stops you from being charged any fees is a great bonus and if you’re not good with budgeting this could be ideal for you!

This is ‘Up to’ so you’re not guaranteed it and will depend on a credit check.

£300 must be deposited straight away.

£1,400 interest free overdraft in your 1st year.
Up to £1,700 interest free overdraft in your 2nd year.
Up to £2,000 interest free overdraft in your 3rd year.

You will need to request an increase to your overdraft limit for years 2 & 3. Your overdraft limit will not automatically increase in your 2nd, 3rd, or subsequent years of study. Approval will depend on an assessment of account conduct.

Formal overdraft service above the account standard overdraft facility for the current year of study. 0.79% per month; 9.9% EAR.

Informal overdraft service above the account standard overdraft facility for the current year of study (1.46% per month; 18.9% EAR.

£10 daily fee for being over your agreed overdraft + £10 monthly fee.

EAR is the Equivalent Annual Rate for overdrawn balances

This is ‘Up to’ so you’re not guaranteed it and will depend on a credit check but more worryingly all mentions of the overdraft online don’t mention the £3000 at all, there is a possibility they’ve removed it. In the past £1200 is about what they offer a traditional first year student.

Earn credit interest on any credit balance 0.10%AER (0.10% gross) variable. Interest is paid monthly.

Over agreed %
Planned: 0.58% a month (7.2% EAR)
Unplanned: 1.82% a month (24.2% EAR)

£10 fee for each purchase that isn’t paid as you’re over your limit.

£28 monthly fee if at any point you go over your agreed overdraft.

“If we have a valid reason, we can choose not to charge a fee that you would otherwise have to pay.”

This is ‘Up to’ so you’re not guaranteed it and will depend on a credit check.

Starting with £500 for the first six months. You can then apply to increase it to £1,000 in months seven to nine and from month ten up to £1,500 – helping you to manage your spending over your first year.

Receive 5% AER /4.89% gross variable interest on balances up to £500, paid on the second working day of each month

Free £10 overdraft buffer. Over £1,500+ 0.66% (8.21% EAR)

This is ‘Up to’ so you’re not guaranteed it and will depend on a credit check.

£6 for each payment over your overdraft (max £60 per period).

Apply for a £500 overdraft when you open your account, which you can increase up to £3,000 over the course of your studies (subject to status).

Account opening: up to £500
Term 1: up to £500
Term 2: up to £1,000
Term 3: up to £1,500
Term 4: up to £2,000
Term 5: up to £2,500
Term 6 and beyond: up to £3,000

£1 a day when you go over your agreed overdraft, no maximum!

In your first year, you can apply for a Planned Overdraft where there is an interest and fee-free amount of up to:

£500 for the first 6 months,
£1,000 from month 7,
£1,500 from month 10,

Not the best freebie in the world as alternative cards/apps are available but worth £32 and gives 5% off Amazon and free McDonalds among other things.

Unplanned Overdraft balance of £10 or less: no fee (buffer applies)
Unplanned Overdraft balance is more than £10 but less than £25: £5 fee per day
Unplanned Overdraft balance is £25 or more: £10 fee per day

A returned item fee £10 for each item (for all purchases declined above £10)