How to Set Up Your Student Bank Account

This post is part of our "Next Stop: Uni" series which guides you through each week of the summer between finishing school and Freshers so you can start uni prepared and excited.

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In an ideal world, you might have already gone ahead and sorted out your student bank account by now. You’ve been responsible, you’ve been prepared, and you’ve been on it – you went and set up everything months and months ago, even.

But let’s be real for a second. With revision and exams and socialising and all the other bits of admin you’ve got to consider when applying to university, it’s easy to let sorting out a student bank account fly under the radar. And with student finance deadlines and Freshers’ Week sailing ever closer, it’s also easy to start feeling overwhelmed.

Between choosing a bank to go with, setting up your account, and applying for all the necessary student loans you need, it can seem like the list of steps you need to follow is never ending. But at UniHomes we’re here to help you through the process and ease your stress, thanks to our handy student bank account guide. Read on for our tips, tricks and advice.

What is a student bank account? 💳

To put it simply, a student bank account does what it says on the tin. Essentially, it’s a type of bank account designed specifically for students, and people become eligible for one as soon as they get accepted onto a university (or college) course.

But how is it different from a regular bank account? Well, for starters, student bank accounts tend to come with extra bonuses like complimentary railcards or cashback schemes, as well as interest-free overdrafts. These benefits vary from provider to provider, though, so always make sure you know what you’re signing up for.

How do overdrafts work? 🙋‍♀️

Perhaps the most enticing feature of a student bank account (at least, it is for most people) is the prospect of a shiny interest-free overdraft. Student bank accounts usually come with the option for you to apply for an overdraft, which basically allows you to borrow money from the bank free of charge when your balance reaches £0. Your overdraft limit (the maximum amount you can borrow) tends to increase as you progress through uni, with some banks offering up to £3000 for third years.

Be warned, though: this money isn’t free forever. Once your account changes from a student account to a graduate account (which happens automatically as soon as you graduate), you’ll have a limited timeframe in which you can pay back the money you’ve borrowed before you start to face interest (charges). Make sure you’re confident you can pay back your overdraft in a timely manner when you graduate before applying for one, and double check how long you have before your bank starts to reduce your overdraft.

Do I need a student bank account?❓

Strictly speaking, a student bank account isn’t 100% necessary for your studies; it is in fact possible to get by without one, but in doing so you’ll be foregoing the bonuses that typically come with student bank accounts, and you’ll also have no interest-free overdraft to fall back on should your budgeting go all pear shaped.

Still, it’s best to avoid maxing out the overdraft – it’s much harder to pay off £3000 than you think, even if you do end up with a cushy graduate job. Stick to budgeting or consider getting a part-time job (or just a summer job or a Christmas job) if you’re struggling financially.

How to open a student bank account 🤔

Opening a student bank account is very similar to opening up a regular current account, in that you’ll need to provide the bank with proof of identity and proof of address. Typically speaking, your passport, driver’s licence or birth certificate will suffice as ID and proof of your address should be covered by a utility bill, a bank statement or your driver’s licence.

The main difference between opening up a current account and a student account, though, is that you’ll need to have proof that you are in fact a student. More often than not, banks will want to see your unique 16-digit UCAS code for this (here’s how to find your UCAS status code), but some will accept a letter from your university showing that you’ve been accepted onto your course.

Can international students open a UK student bank account? 🌍

Opening a UK student bank account as an international student can be a great way to manage your money and budget more effectively while at uni, because you won’t face any currency conversion fees when making purchases or withdrawing money. It could also make having a part-time job easier, as more often than not employers will want to pay your wages into a UK bank account.

That being said, policy does differ from bank to bank. Not every bank allows international students to open a UK account, and the ones that do will most likely require evidence that you’re an international student, such as your passport, your student visa, proof of UK address, and proof that you’ve been accepted onto your course. If in doubt, check in with each bank and their rules before making any big decisions.

Which bank should I go with? 🏦

This is completely up to you! What you want out of your student bank account will be completely different to what someone else will want, so it’s important to only consider your own financial needs and goals when picking a bank.

Don’t feel pressured into staying with the same provider you’re currently with, either. If you’re with one bank but like the look of the benefits that another offers, feel free to switch! All you should be thinking about is what will be best for your finances, so consider any and all benefits (and fine print) at length.

Check out the MoneySavingExpert for more information on the best student bank accounts for 2025 – including all of the pros and the cons.

Can you have multiple student bank accounts? 💰

The simple answer to this question is "no". The terms and conditions that come with having a student bank account usually state that your account must be used as your main bank account (meaning that this is where your student finance payments and any wages must be deposited into), and you generally won’t be eligible to receive any banking benefits or to apply for overdrafts with second student bank accounts.

Applying for student finance 💷

Okay. So you’ve decided on which student bank account you want, you’ve gone ahead and applied, and you’ve been approved. Now what? It’s not too hard to figure out that the next logical step is going ahead and applying for student finance, especially if you want that first student loan to arrive in your lovely new student bank account on time. That’s why the calling point in this weekly series will be walking you through the steps you need to take when applying for student finance, with our advice guaranteed to make the process smooth and simple once again.

Budgeting is easier with UniHomes

Want to give your budgeting another boost? When the time comes to start looking for student accommodation, remember properties featured on UniHomes have bills already included – making it easier to plan what'll be coming out of your bank account each month.

This blog is written for general informational purposes only and does constitute legal or financial advice, nor does it reflect the opinion of UniHomes. Information correct as of July 2025. See each individual web page for full terms and conditions, and always carry out your own research and seek independent financial advice. UniHomes is not regulated by the Financial Conduct Authority (FCA) and its authors are not financial advisors.