The best bank accounts in the UK for students are easily accessible. Financial security can feel like a constant uphill battle if you struggle to find the best bank account in the UK. There is always news about new fees or restrictions being introduced every other day, and earning money as an international student in the UK can be tedious.
With competition continually intensifying, it can be challenging to keep up with all the changes in the banking sector when searching for the best bank accounts in the UK for students. However, plenty of great options are available if you know where to look and whom to trust.
Whether you’re just getting started or looking for more flexibility in your banking, we provide insight into what you should look out for and why having these bank accounts as a student could benefit your financial future.
When should you consider opening an account?
If you have been looking for the best bank accounts in the UK for students, there are a few factors to consider. Whether it’s the interest rates or fees and charges, it pays to ensure you know what you’re getting before committing to any new account.
After all, if you want to get the most out of your money, you’ll want your account balance to grow as quickly as possible.
If that means switching accounts, then it might be worth considering. Many banks in the UK offer different interest rates, but which one is right for you? Well, there could be many different reasons why choosing one bank over another would be beneficial. It could be because they offer more benefits than others.
For example, HSBC has been praised for its customer-centric customer service. Alternatively, Halifax Bank of Scotland provides reasonable access for those who need financial help with debt management. Barclays can help you access a cheap mortgage if you are on a visa.
It is crucial that whichever UK bank you choose as a student has features that will suit your needs and save you money in the long run – that’s what banking is about!
The following article will help you understand the best bank accounts in the UK for students – savings and current accounts.
Best savings bank account in the UK for students
When it comes to your savings, you might not always have the time to keep track of them. That’s why having a savings account that lets you easily access your cash is ideal.
Moreover, not having a bank account can make it difficult for you to keep track of your money spent at university. However, not all bank accounts are created equal when offering the best rates for savers.
You need to keep several factors in mind before choosing a UK savings bank account as a student, including the interest rate offered by the bank and any fees associated with using the savings account.
What you should know about a savings account as a student in the UK
A savings account is a type of bank account that allows you to save money and earn interest on your savings. Different interest rates are offered depending on the type of savings account.
These accounts usually have an easy way to access your money when needed, and they typically don’t require any sort of credit check to open an account. To find out which UK banks offer the best rates for savers, look at each bank’s total annual percentage yield (APY) for their savings accounts.
Also, factor in any fees associated with depositing or withdrawing funds from the accounts, how easy or difficult it is to open a new account and whether or not there are any restrictions on how much money could be saved in each account.
Best types of savings accounts in the UK
Lloyds Bank offers one of the best savings accounts in the UK. They offer a rate of 2.5 per cent, higher than banks like Halifax, Barclay, and Santander. Additionally, they offer a range of services like debit cards, mobile apps, and access to cash points that make it easy for you to manage your funds.
Lloyds is the way to go as one of the best bank accounts in the UK for students. Its low fees and a high-interest rate are among its other features.
Another one of the best bank accounts in the UK is offered by Santander. They offer a interest rate slightly lower than Lloyds but higher than Halifax’s and Barclay’s 1.5. This bank also offers a range of services, including credit cards, access to cash points, and even overdrafts if needed.
The third best bank account in the UK is offered by Halifax. They offer an interest rate of 1 per cent. However, their rates are competitive with other banks at 0.8-1 per cent on balances above £2 million, depending on how much you have in your current savings, account tied up in investments and mortgages.
Which banks give the highest interest?
The top interest rates in the UK are currently at 0.25 per cent for a savings account, 1.2 per cent for a fixed rate bond, and 2.1 per cent on a high-interest savings account. The highest of these is the 1.2 per cent fixed rate bond, which can be withdrawn immediately after the term is over to avoid fees on most accounts.
The highest interest rates, also seen as safe investments, are 0.25 per cent savings accounts and 2% high-interest savings accounts with no fees on any withdrawal within the first six months of opening the account.
Unsurprisingly, the best savings accounts in the UK are recommended for beginners and students. These accounts offer interest rates that are higher than other accounts and a better chance of getting your money back.
These accounts are not restricted by complicated terms and conditions like other banks. The account is only available to new customers, including international students, so you will need to open an account with one of these banks to take advantage of the high rates offered. The following banks are one of the best bank accounts in the UK for students and they offer high-interest rates for students:
- The Virgin Money Bank
- Nationwide Building Society
How to choose the best bank accounts in the UK for students
You must consider several factors when deciding on the best bank accounts in the UK as a student. One factor is the interest rate on offer. You might be tempted to choose an account with a high-interest rate, but there are often extra fees attached to those accounts, making them less attractive for students who want a simple, hassle-free savings account.
The only way to know which bank offers the best interest rates is by crunching some numbers and seeing what bank accounts offer the highest interest rates with the fewest fees.
To do this, calculate how much you could earn if you put £1,000 in each of these top 10 banks each year while they paid out at the average UK annual interest rate.
For example, if you save £1,000 and earn an annual interest rate of 1% over 12 months would give you £12.50 in return for your money.
Which UK banks to consider as a student
If you believe paying interest on your savings is essential, then choosing a bank account with an attractive rate is a must. However, before comparing rates, you need to do the math first. Look at how many monthly withdrawals you make and what type of account you want to open.
If you plan on withdrawing at least £5,000 in cash every month from your savings account, consider opening an easy-access account. This type of account will allow you to withdraw cash as quickly as swiping a debit card rather than going through the rigorous process of withdrawing funds by visiting cash points.
Furthermore, if there are no monthly fees associated with the account or any other withdrawal restrictions, then simply opening this type of bank account may be the best option.
Alternatively, consider opening an instant access account if you don’t regularly withdraw money from your savings accounts but still want an attractive rate for your funds.
This is because these accounts offer a much higher interest rate without increasing the risk of breaching withdrawal limits compared to regular savings accounts. And if there are no fees associated with using this type of account either, then it’s even better!
Another benefit of this type of bank account is that it offers greater flexibility when storing your money in more than one currency. Lastly, if there are no monthly fees associated with the account or any other withdrawal restrictions, there aren’t any high-interest rates.
Registered accounts for wealth management in the UK
Registered accounts can be a great way to save and they are one of the best bank accounts in the UK for students. They offer a higher interest rate than a standard savings account, which is something that you’ll want to take into consideration if you’re falling behind on your savings targets.
Registered accounts also allow for additional features and are more likely to have a broader range of services than standard accounts. Most notably, registered bank accounts often have access to wealth management services, which can help you monitor your investments and ensure that your money is working for you.
Among the best bank accounts in the UK for students offering registered accounts are: HSBC, Barclays and Santander UK.
Best current bank account in the UK for students
What is a current account?
A current account is a bank account that typically provides easy access to cash, payment services, and other financial services. Current accounts are the most common type of bank account in the UK. It is arguably the best bank account in the UK for students.
A current account should be flexible, so you can get your money whenever necessary. This might require having a debit card or being able to pay for purchases online quickly. If you’re considering switching banks, it is worth looking into how much interest you will earn on your savings and how long your statements will be available.
You might find that switching banks could help you save money by earning more interest on your savings or providing you with more monthly statements.
The best current accounts in the UK for students
The best current accounts in the UK for students are those which offer:
- Competitive interest rates
- A wide range of options for deposit and borrowing
- A mobile app, to make banking easier
- Accessibility on the go
- A single account to manage your finances
- Competitive rates so that you don’t have to pay too much interest on your savings
- Convenient access (such as 24/7 support)
- Clear identification requirements for new customers and a clear focus on customer service if you’re already a customer
- The ability to switch from one bank or account provider to another without being penalised financially.
Which bank accounts are the worst for students?
The worst current accounts in the UK are the ones that charge you for everything, no matter how small. It doesn’t matter if your account is an ‘unlimited’ account or not – if there are fees attached to it, it is not a good deal for you. This includes things like overdraft charges and card payments. Although these charges can be waived with a credit card, they shouldn’t be part of your bank account.
It’s possible to avoid these kinds of accounts altogether by sticking with a free current account that does not charge anything for any service offered. These accounts typically offer fewer features than their more expensive counterparts and may take some time to get used to. However, they’re typically worth the wait, given that they offer no hidden costs. They are not among the best bank accounts in the UK for students.
Savings bank account vs current bank account
While savings and current accounts are among the best bank accounts in the UK for students, if you are considering a switch providers, it helps to consider some key factors that will influence the decision. First, you should consider your financial goals and what type of bank account would help you achieve them.
Are you looking for a bank account with an annual fee-free year? Does a high-interest rate appeal to you? What are the fees associated with your current account?
Also, there are many benefits to opening an online bank account, including the ability to take advantage of online banking services and online bill payments. An online account is an excellent option if you don’t feel like you need a branch nearby or don’t want to make long trips just to pay your bills.
If you have kids as a student or plan on having them in the future, it might be worth looking into an account with a child development feature that helps parents manage their children’s finances. This service lets parents set spending limits and monitor their children’s spending habits, so they stay within budget and money goes towards savings instead of toys or other distractions. The best bank accounts in the UK for students will have these provisions.
If you’re looking for a bank that offers more flexibility and convenience, then a current account might be right for you. Another factor worth considering is the range of services available at each bank. Some banks offer more than others and may even have different packages tailored to your needs.
So if your current account doesn’t provide exactly what you need, don’t get discouraged—try out one of their competitors.
What are the benefits of having a bank account as a student in the UK?
There are benefits to having a bank account, such as access to your money whenever you need it and the ability to draw on your savings without a penalty.
The negative of a bank account is the possibility of being locked out of your money for any reason. There are also some circumstances in which you may not be able to access your funds, such as if the bank goes under or if you move to a different country without informing the bank first.
When choosing a bank account, it is essential to consider these various factors and decide which is best for you.
How to choose the best bank accounts in the UK for students with low fees
Choosing the best savings account can be daunting, given how many options are available. However, you should keep a few things in mind to ensure you end up with the best savings account for your needs. First and foremost, you should make sure that the interest rate offered by the bank is competitive.
If your bank offers low rates on their savings accounts, there’s likely a good reason. Look for a bank with a reputation for offering high-quality products and services to its customers. Also, make sure that the bank offers a range of different types of savings accounts to suit your needs.
Final words: Which are the best bank accounts in the UK for students?
By switching to a new bank, you can access exclusive perks like automatic refunds on ATM withdrawals, the ability to make international payments, and lower overdraft fees. If you are looking for options that are more flexible and offer more features. Remember to always read the small print before signing up.
This way, you can choose the one that best fits your individual needs, especially if you are an international student with higher expenses. For example, if you’re looking for a high-yield account targeted at long-term savers, you may want to choose an online-only account over a traditional brick-and-mortar bank.