Student bank accounts

Alongside student loans the High Street banks form an important role in financing the studies of many students through their student bank accounts. This is because they offer free overdrafts to students that often don't need to be repaid until a few years following graduation, just be careful not to go above your agreed interest free limit or you may face interest charges of up to 24% AER with a charge of £30 per transaction over the limit, or a daily charge such as Santander's £5 daily charge for being overdrawn beyond the agreed limit. In competing for tomorrow's high earners they are keen to snap up today's students with some decent student bank account opening packages. All of the banks listed below offer Graduate Accounts that offer at least one year's interest free overdraft after graduating. Review our guide to the features of each account below to find the best student current account for your circumstances:

Barclays Student Additions Account
Incentive: Save £75 on a new monthly mobile contract with Phones 4u. Discount on student travel and possessions insurance.
Interest free overdraft: Up to £2000. £2,001 to £3,000 charged at 8.9% interest per annum.
Credit interest rate: 0.1% AER

Halifax Student Current Account
Incentive: 25% off one year's AA breakdown cover.
Interest free overdraft: Up to £3,000 available interest free for the length of your coursen. 8.2% interest charged over agreed limits.
Credit interest rate: 0.1% AER

HSBC Student Account
Incentive: Two years free worldwide travel insurance.
Interest free overdraft: Initially £500 then can be increased up to £3,000 upon request (subject to credit approval).
Credit interest rate: 2% AER on balances up to £1,000 in Year 1

Lloyds TSB Student Account
Incentive: Free NUS Extra card and YHA membership for 3 years.
Interest free overdraft: Year 1: £1500 (max £500 in months 1-6) , Year 2, 3: £1500, Year 4, 5, 6: £2000
Credit interest rate: 0.1% AER

NatWest Student Current Account
Incentive: Student discount card and £100 off an ASUS laptop.
Interest free overdraft: Year 1: £1250, Year 2: £1400, Year 3: £1600, Year 4: £1800, Year 5: £2000
Credit interest rate: 0% AER

Royal Bank of Scotland Student Royalties current account
Incentive: Student discount card and £100 off an ASUS laptop.
Interest free overdraft: Year 1: £1000, Year 2: £1250, Year 3: £1500, Year 4: £1750, Year 5: £2000
Credit interest rate: 0% AER

Santander Student Current Account
Incentive: Mobile, gadget and laptop insurance, worth over £240 each year.
Interest free overdraft: Year 1: £1000, Year 2: £1250, Year 3: £1500, Year 4: £1750, Year 5: £2000
Credit interest rate: 1% AER on balances up to £500