Student and graduate bank accounts

A student bank account works in the same way as a current account, so you’ll be able to:

• receive money, like maintenance payments, wages or cash from family  

• pay for things or take out cash with a debit card 

• transfer money to pay bills or other people, including regular payments like Direct Debits and standing orders 

• manage your account 24/7 through mobile and online banking. 

Many accounts also let you access your account over the phone, in branches and at the Post Office. 

After you turn 18, you can usually apply for an optional overdraft. This is a type of borrowing that lets you spend more than you have, up to a limit set by the bank.

There’s normally no cost to use a student overdraft while you study, but it’s not free money. You’ll have to repay everything you spend.

Here’s how they work:

• you need to pass a credit check – see how to improve your credit score. 
• overdraft limits are typically £500 to £3,000, and either: 
  
  • guaranteed – all accepted get the advertised amount 
  • up to – you could get less depending on your credit history.
• your overdraft limit might increase each academic year, either:
  • automatically, so you don’t need to do anything, or 
  • by applying to the bank. 

Your student bank account is normally changed to a graduate account automatically at the end of your course. This usually keeps your overdraft interest-free for at least another year, helping you budget to clear it.

See graduate bank accounts explained for more information. 

If you decide not to finish your studies, you’ll need to tell your bank. They’ll typically turn your account into a normal current account, which usually means you’ll be charged overdraft interest.

If you’re unable to repay the amount you owe, ask your bank for help. They might agree an affordable repayment plan or waive interest for a set period. See talking to your creditor for step-by-step help.  

You can usually get a student bank account if you’re aged 17 or over and studying full time. Typical courses include:

• an undergraduate course
• a postgraduate course
• a level 4 to 7 apprenticeship 
• a foundation degree
• a level 4 and 5 NVQ.

The list of qualifying courses varies per bank, so you might need to shop around to find a bank that lets you apply. You often need to apply within six months of the course start date.

Banks will ask for proof you’ve been accepted, such as a: 

• UCAS status code
• letter confirming your place
• student ID card.

You’ll also need ID, like a driving licence or passport. See how to open a bank account for more information.  

You can usually only have one student bank account, but you might be able to switch to a different bank. Some banks only let first year students open an account, so always check the eligibility criteria. 

If you want a second account, you could open a normal current account. 

See how to choose a bank account and how to switch accounts for help. 

Banks have safeguards in place, but here are tips to keep safe:

• never share login details or your PIN with anyone

• keep sensitive paperwork hidden, especially in shared houses

• if you receive a phone call from someone claiming to be from your bank, hang up and use the number printed on the back of your card to call back

• don’t click on any links in messages or emails from someone you don’t know

• if a deal seems too good to be true, it probably is – such as an offer for ‘free money’

• if you spot any transactions you don’t recognise, tell your bank immediately

• don’t store money for someone else, you could be helping illegal activity.

Read more in a beginner’s guide to scams.

As well as an interest-free overdraft, some student bank accounts offer freebies to tempt you to sign up – like free cash or a railcard. 

Our compare bank accounts tool helps you view student account features, fees and charges. 

To read reviews and work out which is the best student account for you, see:

• MoneySavingExpert’s best student bank accounts reviewOpens in a new window

• Which? round up of student bank account perksOpens in a new window

• Save The Student's student account comparisonOpens in a new window

Some credit cards will accept students, normally with relatively low credit limits starting as low as £50. 

If you don’t spend more than this and can repay it on time, it can boost your credit rating – which can make getting future credit easier and cheaper.

But, unlike a student overdraft, a credit card is only interest free if you repay it in full every month. Not paying in full or paying the minimum monthly repayment will mean you’ll be charged expensive interest. Missing a payment could also damage your credit rating.  

See our simple guide to credit cards for more information.

You can see the student credit cards that are availableOpens in a new window at MoneySavingExpert.

Once you finish studying, most student bank accounts automatically convert into a graduate account. This often works like a student account in reverse, with the interest-free overdraft reducing each year.  

This varies per bank, but for example:

Always check when your bank will start to charge interest, and budget to repay the overdraft before that date. 

If you’re struggling to repay, ask your bank for help. They’ll look at ways to support you, such as agreeing an affordable repayment plan. See step by step help in talking to your creditor.  

You don’t need to stick with your current bank, especially if there are better deals elsewhere. 

If you’re still in your overdraft, check if other graduate accounts can offer you a larger or longer interest-free period. For a round up and best buys, see:

• Save The StudentOpens in a new window 

• MoneySavingExpertOpens in a new window 

If you don’t owe the bank any money, you might be better off switching to a current account. These often come with perks like cashback, savings interest and free overseas spending. See how to choose a bank account.

If you have a problem with your bank or current account, follow these steps.   

1. Ask your bank’s customer services to put things right – if you can’t agree on a resolution, then

2. Make a formal complaint – they have eight weeks to investigate and give a final response. If you still don’t agree, or the timeframe has passed, you can

3. Take your complaint to the free Financial Ombudsman Service – you’ll get an independent decision on whether your bank’s response was fair or if they need to do more.

For more information, see our full how to complain guide.