Student Banking FAQs

A student bank account is a current account designed for people in higher education. It works like a standard current account but usually comes with student-focused features. This could be an interest-free arranged overdraft and perks like cash offers or vouchers.

An overdraft can give you a useful buffer when money is tight, but it’s borrowed money you’ll need to pay back.

No, you don’t need a student bank account to go to university. But you could get useful features that a standard current account might not offer, like an interest-free arranged overdraft or student perks.

Compare your options and think about which features will actually be useful to you, rather than choosing an account just for the sign-up offer.

Yes, you can usually keep your existing current account when you open a student account. Having more than one account can help you separate things like bills and everyday spending money.

Check the terms of the account before you apply, as some student accounts or offers might ask you to switch your main banking or pay in a certain amount.

You can usually apply for a student account once your university place is confirmed. Applying before term starts gives you time to get your account set up and ready for your first student finance payment.

Check what proof you’ll need and give yourself plenty of time, as applications can take longer if the bank needs more information.

You’ll usually need proof of your identity, address and student status. This could include a passport or driving licence, proof of your UK address and confirmation of your university place.

Exactly what you’ll need will depend on the bank, so check before you apply.

Possibly. Some banks let existing customers change to a student account, while others may ask you to open a new account or switch from another bank.

Before switching, check if you’re eligible and whether you’ll qualify for any student offers or features. Providers will check your student status and may require proof of your course.

It depends on the bank. Some could let you have a student account alongside another current account, while others might have rules about holding a student account elsewhere.

Having more than one account does not mean you have to use, or you’ll get, two student overdrafts. If you have overdrafts on multiple accounts, keep track of what you borrow and remember you’ll need to repay it.

You’ll need to check each bank’s terms before you apply.

Student bank accounts are usually free to open and do not normally charge a monthly account fee.

That’s not to say everything is free. Depending on the account and how you use it, you could still face interest or charges, so check the terms before applying.

Charges could apply for things like:

• spending with your card overseas
• going over your arranged overdraft limit
• missing payments.

Our FlexStudent bank account has no Nationwide fees for spending abroad or using your arranged overdraft.

Download our Fee Information Document - PDF, 71KB (opens in a new window)

A student account usually lasts for the length of your course, as long as you continue to meet the bank’s eligibility requirements.

After you graduate, your bank might move you to a graduate account or standard current account. Speak to your bank to find out what happens next, as your overdraft and other account features could change.

No, but most student accounts will give you the option to apply for an arranged overdraft. The provider will look at your financial situation to check if you can get one and how much you could afford to borrow.

For example, with our FlexStudent account, you can apply to borrow up to £1,000 in your first year. If you want to increase your limit in your second or third year, you’ll need to apply again, pay enough money into your account, and we’ll check that you qualify.

No, an arranged overdraft is an optional way to borrow money in the short term while studying. You don't have to apply for one.

Lots of student accounts offer an interest-free arranged overdraft, so you won’t pay interest if you stay within your agreed limit.

Limits and eligibility can vary between banks, so check the terms before you apply.

How much you can get depends on the bank, if you’re eligible and your year of study. Your overdraft limit may increase as you move through university, but you might not get the maximum amount advertised.

You can usually apply for an arranged overdraft at any time by speaking to your banking provider.

This will depend of who you bank with. If a payment takes you over your arranged overdraft limit, you could go into an unarranged overdraft. This means you’ve borrowed more than you agreed with your bank.

If you bank with us, we don’t normally let you spend beyond your balance or arranged overdraft limit.

It can. When you apply for an arranged overdraft, your banking provider might carry out a credit check. This means looking at your credit history to see how you’ve managed borrowing in the past.

How you manage your overdraft can also affect your credit score. If you’ve not borrowed before, you might have little or no credit history. A student overdraft could be one of your first forms of borrowing, and how you manage it could affect your chances of getting credit in the future.

On one hand, if you keep going into an unarranged overdraft, it could show potential lenders you struggle to manage your finances. On the other, if you use an overdraft responsibly, it demonstrates you’re responsible financially.

Credit means borrowing money you’ll need to pay back, like an overdraft, credit card, loan or mortgage.

Your overdraft will not usually disappear as soon as you graduate. Depending on your bank, you could move to a graduate account or a regular current account. Your overdraft limit or interest rate could change too.

Check what happens to your account and when you’ll need to repay any money you’ve borrowed using your overdraft.

A student overdraft can be a useful way to cover unexpected costs or short gaps in your budget. But it’s still borrowed money that you’ll need to pay back.

If you have one, understand your limit and how and when you’ll need to pay it back.

Compare the features that matter to you, like an interest-free arranged overdraft, incentives and ways to manage your money. Check the eligibility and terms too, as well as what happens to the account after you graduate.

Not necessarily. A bigger overdraft gives you access to more borrowed money, but you’ll still need to pay back what you use.

Compare the interest-free limits and how they change during and after university, rather than choosing an account based on the biggest number.

They can be, but cash, vouchers and other incentives should not be the only reason you choose an account.

Compare the account itself first and check what you need to do to qualify for the offer.

It depends on what the new account offers compared with your current one. Look at features such as the arranged overdraft, incentives and ways to manage your money.

You might also be able to change your existing account to a student account without switching banks.

A good banking app can make it easier to manage your money at university.

Look for useful features like spending insights, balance alerts and card controls, and consider how easy the app is to use day to day.

This will depend on things like where you live, your rent and your lifestyle. Your main costs are likely to include accommodation, food, transport and course materials.

Work out your essential costs first and plan your spending around what you have left where you can.

You could get by on a budget of between £100-£200 a month on food shops, although your real total could be higher once takeaways, coffees, and eating out are added in.

If you cook most meals at home, compare supermarket prices, and buy own-brand where it makes sense, your money will usually stretch much further.

Some students can live on the maintenance loan they get through student finance, but plenty find it doesn't fully cover their living costs for the whole year. How far it stretches depends on your maintenance loan amount, your rent, your city, and whether you live at home or away from home.

A student in a lower-cost city may be able to cover most essentials, but a student renting privately in London could face a much bigger shortfall.

If you run out of money, act quickly and focus on essentials first. Then look at your savings and emergency fund and see if that can help cover costs.

If you don't have a buffer, or it's not enough, let your university know as soon as possible. There are hardship funds and bursaries, as well as student services that can help. You should also contact your landlord, bank and the companies you pay your bills to if you're going to miss a payment. They may be able to give you options if you ask as soon as possible.

As student finance is usually paid at the start of the term, and needs to last the whole term, a weekly budget is best. It will give you a clearer limit for all your expenses, and make it easier to see what you can actually afford.

Spending too much early in the term, losing track of small purchases and treating an overdraft as everyday spending money can be common.

Having a budget, checking your balance regularly and planning for bigger costs can help you stay on track.

They can help make your money easier to see and harder to ignore. When your student finance arrives in a lump sum, a budgeting app can show what's gone out, what's left to pay and whether you're sticking to your budget.

Banking apps can also help. Depending on the provider, some apps let you create savings pots, get alerts when money goes out, or send you a notification when a pot is running low. Some also offer spending insights, making it easier to see where your money is going without needing a spreadsheet.

Whatever apps you choose, you'll still need to check them regularly and use them to support realistic spending habits.

Starting university can mean managing money independently for the first time. Parents can be there to talk through things like budgeting, bills and making student finance last while giving students space to manage their own money.

No, not normally. A student bank account belongs to the student, so parents cannot usually access it or discuss it with the bank without special permissions.

If a student needs some extra support, they can speak to their bank about the options available.

There’s no right answer, as every family’s situation is different. If you’re thinking about helping with an overdraft, talking about how it’s being used and what happens next can be a useful place to start.

Remember, an overdraft is borrowed money that will eventually need to be repaid.

If a student needs money quick, parents can usually send it straight to their bank account by bank transfer.

Check the account details carefully before sending money, especially when setting up a new payment.

Your student account will usually change after you graduate. Depending on your bank, you may move to a graduate account or a standard current account.

Your overdraft and other account features could change too, so check what happens before your course ends.

You will need to repay your student overdraft, but you might not need to pay it back all at once when you graduate.

Your interest-free limit may reduce over time, so check your bank’s terms to understand when and how things will change.

Yes, you can usually stay with the same bank after university. Your student account may change to a graduate account or a standard current account, depending on your bank and whether you're eligible.

Check what your account will change to and whether the overdraft, fees or other features will change too. You can then decide whether staying with your bank still works for you.

Not always. Some banks may move you to a graduate account after your course ends, while others may move you to a standard current account.

Check what your bank does before you graduate, so you know what to expect.