The best student banks in the UK & Scotland

Put your money troubles to rest and bank the smart way, not the hard way.

Whether you're from the UK or overseas, managing your finances is crucial to a happy experience as a student. It can be confusing or even daunting at times, especially if it's your first time setting up an account. Don't worry, this article will break down the banking process and help you pick out the best bank for you.

What information you will need at the ready

UK Banks will require you to apply by providing information to open a new account. Additional documents may be requested depending on which one you choose but all will need some form of the below:

• Passport (or national I.D. card may be accepted if you are from an EU country)
• Visa if you are from a country outside the EEA
• Confirmation of your UK address (lease agreement, accommodation contract, bills, etc)
• Confirmation of your home address (unconditional offer letter for your course, bank statements, bills, etc)

You must provide this information or you will likely get rejected. Additional documents could be things like a letter confirming you have registered as a full-time student or information about your funding arrangements if you are sponsored by your employer or government.

As a student, you will most likely be offered a student-style bank account that is essentially a basic cash/current account. This will allow you to deposit cash, cheques (travellers and personal), and banker's drafts and to arrange credit transfers to your account. Most accounts will come with a physical debit card as well which will allow you to make purchases online and in person, so make sure to put in a request for one if it's optional.

It is important for international students to set up a UK bank account because usually deposits and transfers in currency other than UK sterling will have a transaction charge.

Online-only banking

You may consider opening an online-only bank account. This means there will be no physical branch you can visit but you will be able to do all of your management through a website or app. If you are concerned about the safety of doing all of your banking online, then I'd recommend setting up measures to protect your account. For example, email alerts and basic password protection is required to gain access to your accounts no matter what but you could make sure your device also has a password (that is different to your account password) or fingerprint in order to unlock the device.

It's usually easier to create an account with an online-only bank as they are more forgiving on the documentation you have to send in. Each has its own pros and cons but here are the best online-only banks right now:

• Monzo - Open an account in 15 minutes, extensive cost-of-living crisis support/advice and FSCS protected
• Starling - TechZero greener banking initiative, best-rated customer service and FSCS protected.
• Revolut - Track your card as it's being delivered, sort bills easily with a built-in chat system, and exchange money fast (NOT FSCS protected though).

Look into all of them first before coming to a decision, there may be one better suited to your situation than the rest. For instance, you may benefit more from a card that is better at exchanging between currencies.

High street banking

These are banks with physical branches close to the campus, so you have the added benefit of being able to talk to someone face-to-face if you have any issues. These are usually a little harder to set up compared to online-only banks with a few more steps in the application process. For international students, a lot of student-specific accounts require you to have either lived in the UK for a period of time or are counted as a permanent resident. You can still apply for a normal current account but will not receive added benefits of a student-specific account. Below are two popular options:

• Santander - Recieve a free 4-year 16-25 Railcard (save 1/3 on rail travel in the UK) when you sign up. Handy if you plan on using trains to explore the UK or your course/lifestyle requires you to travel back and forth a lot. Interest-free arranged overdraft of £1,500 for the first three years.
• Bank of Scotland - Get up to 15% cash back on everyday offers for purchases made at JustEat, Costa and Sainsbury's (and more!). Interest-free arranged overdraft of £1,500 for the first three years.

You can compare these against other banks offering student accounts on Finder as well as a good chunk of additional useful information on banking as a student.

Ready to pick out a bank? Good! You can now feel that weight off of your shoulders knowing it's the right one for you.