Which are the best student accounts for 2025?
Whether you're preparing to head to university yourself or helping a teen take the leap into higher education, now’s the perfect time to start swotting up on the best student accounts.
Banks offer some tempting incentives to persuade students to sign up to their student accounts, but it’s usually the interest-free overdraft which students need to pay closest attention to. “Students may be enticed by the free perks on a student account, but it is essential they compare the whole bundle alongside the 0% overdraft in the first instance,” said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.
Here’s our round up of some of the top student accounts currently available, and what they offer.
Student accounts: what you get
Lloyds Bank
Lloyds’ Student Account, which is available from 1 August, gives you a tempting £100 in cash just for signing up, as well as £90 worth of Deliveroo vouchers spread across six months. To be eligible for the £100 cashback, students must pay in a minimum of £500 into the new account before the end date on 31 October 2025. After this, they’ll need to make at least 20 qualifying transactions each month to get the Deliveroo vouchers. The account offers a £1,500 interest-free overdraft and a mobile app which can help students to budget, for example by setting themselves spending limits and enabling them to track bills.
Cashback offers from Hargreaves Lansdown for 2024 - savings, investments and pensions
Nationwide
Nationwide’s FlexStudent account offers students a combined £220 in incentives, comprising of a £100 cash bonus and £120 in Just Eat vouchers over 12 months, which you can boost by another £40 if you refer the account to two friends. To qualify for the £100 bonus students must open the account before 12 December 2025 and pay in a minimum of £500. The building society also provides one of the most generous interest-free overdrafts, offering up to £1,000 in year one, increasing to £3,000 by the third year. Students also benefit from fee-free card use abroad, which could prove useful if you’re on a course which involves a year abroad.
Santander
The Santander Edge Student account gives students entry to a £100,000 prize draw, which they’ll win a guaranteed minimum of £20 from. Students will also get a free 16-25 Railcard worth £115 which saves a third off train travel and a £1,500 interest-free overdraft. They’ll have access to a savings account paying 5% annual interest before tax, which might be useful for those planning to have a job alongside their studies.
NatWest and Royal Bank of Scotland (RBS) student accounts
Both the NatWest and RBS student accounts offer interest-free overdrafts of up to £2,000 in your first year as a student, but during the first term, you can only borrow up to £500. From your third year onwards, you can apply to increase the overdraft to £3,250, which is currently the most generous interest-free offer available on any student account.
Both RBS and NatWest offer £85 in cash as a sign-up bonus, along with a free Tastecard membership which is valid for up to four years. The Tastecard gives students access to restaurant discounts, such as 25% off the total bill, as well as providing money off selected attractions and entertainment venues.
Barclays
The Barclay Student Additions account provides a £500 interest-free overdraft which increases to £1,500 in the second year. Accountholders can sign up for the bank’s Blue Rewards scheme for £5 per month if they want to, which provides various benefits including access to exclusive savings rates and an Apple TV+ subscription.
HSBC
HSBC has yet to announce whether it will offer any additional perks with its Student Bank Account package for 2025. However, students can borrow up to £1,000 interest-free in the first year, increasing to £3,000 by your third year. Accountholders can also get discounts and offers on eating out, leisure activities and shopping through the HSBC home&Away scheme.
Ms Springall said: “The most generous overdrafts come from NatWest, HSBC and Nationwide Building Society, which could be a lifeline for students who need to borrow during their years of study.
“However, taking on some part-time work in between their studies to have a bit of disposable income is wise, because an overdraft will need to be paid back.”
Once you get to university
Living on a budget can be really challenging, so once you’ve got your student account, it’s important to look at ways you can stretch your money further.
That means keeping your eyes peeled for any student discounts you might be eligible for. A spokesman for student housing brand and operator Yugo, said; "Chains like Co-op and ASDA offer 10% discounts with a student card, and flights with airlines like Ryanair and EasyJet often include reduced fares during off-peak periods for student travellers.
“The trick is knowing where to look – platforms like UNiDAYS, Student Beans, TOTUM, and VoucherCodes do the legwork for you, and are updated constantly with new offers across food, fashion, tech, and travel. A quick browse before you buy could shave £50–£100 off monthly outgoings, so it’s well worth a regular browse."