Banking

As a student you normally need a bank account. There are different types of accounts to choose from so you should consider the best one for your circumstances.

Finding the best account takes a little bit of research.  SaveTheStudent, Moneyhelper.org.uk and Money Saving Expert have useful information to help you choose. You can find information on the different types of account below. Student Advice and Support Service are unable to make recommendations about which bank account you should choose.

A student bank account

A student bank account offer benefits such as an interest free overdraft as well as particular incentives. It’s worth considering longer term when it becomes a graduate account, if interest is charged and how quickly you are expected to pay off any overdraft at the end of your studies. Remember that you could change banks when you graduate to look for a better deal.

To open a student bank account you will need ID and some proof that you are a student. You can use your Loughborough University offer letter but if you need confirmation of your student status (including your university address) you will only be able to download a bank letter from the student self-service portal AFTER you have fully completed your university registration: Student Self-Service | Student Enquiries | Loughborough University (lboro.ac.uk)

The bank will conduct a credit check prior to being accepted for an account. If your credit score is poor, you might have to apply for a basic bank account instead.

An international student bank account

If you are an international student coming to the UK to study, unfortunately you won’t be eligible for an overdraft and most of the benefits of a student bank account. You may be able to open an international student bank account. You can find reviews of different bank accounts and more information on the SaveTheStudent website.

To open an international bank account, you need some or all of the following:

• An in-date passport
• A valid visa
• A bank statement from your home bank, from the past three months
• Proof of address in the UK or abroad (check with your bank).
• Loughborough University offer letter

You may be able to open some international bank accounts from abroad, but if you need confirmation of your student status (including your university address) you will only be able to download a bank letter from the University student self-service portal AFTER you have fully completed your university registration: Student Self-Service | Student Enquiries | Loughborough University (lboro.ac.uk)

It can take time to open an international bank account so you might also want to consider bringing a pre-paid card with you for initial spending. You can find more information about these on the SaveTheStudent website. If you bring cash with you, you won’t be able to spend this at the retail outlets on campus because they only accept card payments but will be able to spend it in some shops and retail outlets off campus.

A basic bank account

Most high street banks offer this type of account. As the name suggests, a basic bank account has no additional facilities such as an overdraft. Basic bank accounts can be useful for international students and students with a poor credit rating. Money Saving Expert is a good place to compare basic accounts

You will need a form of ID and proof of address to open one. If you need confirmation of your student status (including your university address) you will only be able to download a bank letter from the University student self-service portal AFTER you have fully completed your university registration: Student Self-Service | Student Enquiries | Loughborough University (lboro.ac.uk)

It can take time to open an international bank account so you might also want to consider bringing a pre-paid card with you and you can find more information on these on the SaveTheStudent website. If you bring cash with you, you won’t be able to spend this at the retail outlets on campus because they only accept card payments but will be able to spend it in some shops and retail outlets off campus.

A graduate bank account

You don’t have to remain with your student bank account when you graduate and you may find a better deal elsewhere. Compare graduate bank accounts on the Money Saving Expert website.

Banking security and fraud

Banks have a duty of care to protect your money, but you have to play your part too.

• Don’t use easy-to-guess passwords
• Don’t share PIN numbers/passwords or let friends borrow your card.
• Be cautious at cash points – shield your PIN.
• Be alert to online or phone scams – your real bank will never phone or email you asking for your password/PIN.
• Password-protect your phone and other devices where you use online banking.
• Contact your bank if you spot any unauthorised transactions on your account.
• REPORT ANYTHING SUSPICIOUS to your bank or to Action Fraud (online fraud and cybercrime reporting centre).

Complaints about banks

If you are unhappy about the service the bank has given you or feel they have discriminated against you, the bank will have a complaints procedure you should follow.

• Approach your bank and ask for them to resolve the problem.
• If you are not satisfied with their response, ask for a copy of their complaints procedure.
• Follow the procedure and make sure the bank does too.
• If you are still not happy, make a complaint to the Financial Ombudsman.

If you require further advice or guidance, you can contact the Student Advice and Support Service, but please note that the Student Advice and Support Service is not authorised to make financial recommendations about choosing a bank account. You can however use the webpages listed to help with your choice.

Last Updated: 15th September 2023