Top 10 Banks in the UK for Students

Choosing the right banks in the UK for students can be overwhelming, with so many options offering different benefits. From high-street giants like HSBC and Barclays to digital disruptors like Monzo and Starling, each bank has its strengths. This guide lists the top 10 banks in the UK to assist you in making a decision, regardless of your preferences for cutting-edge mobile banking, excellent customer service, or the best savings rates. Which one stands out amongst the best banks in the UK for students? Read on to discover which bank offers the best perks, lowest fees, and ultimate convenience for your financial needs.

Overview of the UK Banking System

The UK banking system is one of the most developed and influential financial ecosystems globally, consisting of a mix of high-street banks, digital banks, investment banks, and financial regulators. It plays a crucial role in both domestic and international finance, providing services such as personal and business banking, loans, mortgages, and investment solutions.

Key Components of the UK Banking System:

High-Street Banks: Major banks like Lloyds, Barclays, HSBC, and NatWest dominate retail banking, offering checking accounts, loans, and mortgages.
Digital-Only Banks: Fintech disruptors like Monzo, Starling, and Revolut provide app-based banking with innovative financial tools.
Investment Banks: Institutions like Goldman Sachs and J.P. Morgan handle corporate finance, asset management, and trading.
Regulators: The Bank of England, Financial Conduct Authority (FCA), and Prudential Regulation Authority (PRA) ensure financial stability and consumer protection.

Central Bank

The Bank of England (BoE) is the central bank of the United Kingdom, responsible for maintaining financial stability, regulating monetary policy, and ensuring the overall health of the UK economy. In 1946, the Bank of England was nationalized and became the central bank of the British government; in 1997, it became a separate public sector, which means that, despite being entirely owned by the government, it has its autonomous monetary policy. Key functions of the Bank of England:

Monetary Policy & Inflation Control: The BoE sets the Bank Rate (interest rate) to control inflation and influence economic growth. It aims to maintain inflation at the government’s target (usually 2%).
Issuing Currency: The BoE is the sole issuer of banknotes in England and Wales, ensuring the stability of the pound (£).
Financial Regulation & Stability: Works with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) to oversee banks and financial institutions.
Managing Foreign Exchange & Reserves: Maintains the UK’s foreign currency reserves and stabilizes the financial system during economic crises.
Crisis Management & Lender of Last Resort: Supports struggling banks to prevent financial collapses, as seen in the 2008 financial crisis.

Building Societies

One kind of mutual financial organization that focuses on savings, mortgages, and other financial services is a building society. Some also provide credit and debit cards. Most of these financial institutions are based in the United Kingdom. In reality, the building society’s lenders and depositors own it. High street banks are more complicated than building societies. There are five main building societies in the United Kingdom.

The assets, services, history, and other criteria are used to determine the top 10 banks in the UK for students. Additionally, British residents are more likely to prefer these institutions.

1. HSBC Holdings

Founded: 1865
Headquarters: London, England
Total Assets (£bn): 2,387.03

One of the largest banking and financial institutions in the world, HSBC is one of the best banks in the UK for students. With around 4,000 offices throughout 64 countries, it has a sizable clientele. HSBC was established in 1864 with the intention of offering financial services to British businesses operating in the Far East at the time. HSBC has developed into a global banking institution in modern times. Foreign nations account for nearly 70% of its revenue.

2. Barclays

Founded: 1690
Headquarters: London, England
Total Assets (£bn): 1,477.50

Apart from being the oldest bank in the UK, Barclays is the second-biggest bank, right behind HSBC. With its headquarters located in London, it was established in 1690. Barclays is among the best banks in the UK for students, it was the first to establish an ATM in the world. Additionally, it produced the first debit card in the UK in 1987 and the first credit card in 1966. As a result, Barclays holds a special place in British banking history.

3. Lloyds Bank

Founded: 2009
Headquarters: Edinburgh, Scotland
Total Assets (£bn): 881.50

Among the top banks in the United Kingdom is Lloyds Bank. Lloyds is now one of the Big Four, the four biggest private banks in Britain, thanks to a string of M&A deals. North America, Europe, the Middle East, and Asia are the four regions where Lloyds has branches. It primarily controls the following banks: Lloyds European Bank, National Bank of New Zealand, Bank of Montreal in London, and others. Lloyds is deserving of its place among the best banks in the UK for students.

4. NatWest

Founded: 1968
Headquarters: London, England
Total Assets (£bn): 692.70

NatWest (National Westminster Bank) is a leading UK retail and commercial bank, offering personal and business banking, loans, mortgages, and digital services. As part of NatWest Group, it prioritizes innovation, sustainability, and customer support, with a strong mobile banking app, AI chatbot “Cora,” and green financing initiatives. It is considered one of the best banks in the UK for students

NatWest serves more than 19 million customers across more than 30 countries, making it one of the “Big Four.” The National Westminster Group currently owns NatWest, which was established in 1968 through the merger of National Local Bank and Westminster Bank.

5. Standard Chartered

Founded: 1853
Headquarters: London, England
Total Assets (£bn): 646.39

Standard Chartered is a British multinational bank headquartered in London, operating in over 59 markets worldwide. It focuses on corporate, retail, and investment banking, with strong presences in Asia, Africa, and the Middle East. Known for innovation and sustainability, it supports global trade, wealth management, and digital banking solutions.

Standard Chartered is a global provider of financial services. Deposits, loans, and international settlements are its primary business operations. Despite having its headquarters in the UK, Standard Chartered does not offer retail banking services to individuals in the country and has a small market share.

6. Santander UK

Founded: 2010
Headquarters: London, England
Total Assets (£bn): 275.45

Santander UK is a British bank and a subsidiary of the Spanish Santander Group. It offers personal and business banking services, including mortgages, loans, savings, and investment products. With a strong presence in the UK, it serves millions of customers through branches, online banking, and mobile app services. In 2010, Santander UK acquired parts of the Royal Bank of Scotland’s business in England and Wales and NatWest’s Scottish branch. As a result, it became one of the major banks in the UK for students

7. Nationwide Building Society

Founded: 1884
Headquarters: Swindon, England
Total Assets (£bn): 271.90

Nationwide Building Society is one of the UK’s largest financial institutions, offering banking, mortgages, savings, and insurance services serving over 16 million customers. Nationwide became the biggest building society in the UK and the world by combining roughly 250 building societies.
As a mutual society, it is owned by its members rather than shareholders, prioritizing customer benefits. Founded in 1846, Nationwide focuses on ethical banking, community support, and competitive financial products.

8. Virgin Money UK

Founded: 1995
Headquarters: Glasgow, Scotland
Total Assets (£bn): 91.79

Virgin Money UK is a British financial services company offering banking, credit cards, mortgages, and investment products. Originally founded as Northern Rock and later rebranded, it operates under the Virgin brand. Known for customer-focused innovation, it competes with traditional banks while embracing digital banking solutions for modern financial needs. The organization works in four commercial sectors: deposits, unsecured loans, mortgages, and commerce.

9. Royal Bank of Scotland

Founded: 1727
Headquarters: Edinburgh, Scotland
Total Assets (£bn): 90.40

The Royal Bank of Scotland (RBS), founded in 1727, is one of the biggest banks in the UK for students, headquartered in Edinburgh. In March 2000, the RBS merged with NatWest Group, providing banking and financial services to individuals and businesses. RBS played a key role in UK banking history but faced challenges during the 2008 financial crisis, requiring a government bailout. The deal has reached a record high in British banking takeover, up to £21 billion.

10. Metro Bank

Founded: 2010
Headquarters: London, England
Total Assets (£bn): 22.25

Metro Bank is a UK-based retail and commercial bank founded in 2010. It was the first new high-street bank in the UK in over 150 years. Known for its customer-friendly approach, Metro Bank offers seven-day branch services and a pet-friendly environment. It provides personal and business banking, including current accounts, loans, mortgages, and credit cards, making it one of the top banks in the UK for students

Best UK Current Account

A current account is a kind of bank account that facilitates money management and saving. It’s a practical method of purchasing and selling goods. A current account is the most popular and practical financial product, though you can use other ones as well. But how can one pick the best current account when there are so many banks? Based on user reviews, Finder has created a list of the top current accounts in the UK.

1. Starling Bank:

Starling Bank is a UK-based digital bank founded in 2014. It offers personal and business accounts with features like real-time notifications, budgeting tools, and no foreign transaction fees. Known for its user-friendly app and innovation, Starling operates without physical branches, emphasizing mobile banking and financial technology.

Pros:

No monthly charges
No foreign charges
Sign-up is entirely digital.
24/7 customer service in the UK
To separate shared bills, use the “settle up” tool.
Pays interest on the amount in the current account.
Accessible overdrafts (only on personal accounts)

Cons:

Absence of a branch network
Limited choices for depositors
Absence of incentives for competitive switching
ATM withdrawal limits are lower than those of several other digital competitors.
Absence of a collective savings feature
Lacks a dedicated monthly budgeting tool.

2. Monzo:

Monzo is a UK-based digital bank known for its user-friendly mobile app, budgeting tools, and fee-free spending abroad. Founded in 2015, it offers personal and business accounts, instant notifications, and savings features. Monzo prioritizes transparency, innovation, and customer-centric services, making banking more accessible and convenient for users.

Pros:

Simple to set up
Excellent for classifying expenditures and creating budgets
The feature of automatic saving
Spending overseas without fees
Stylish app with facial recognition
Available loans and overdrafts

Cons:

Free ATM withdrawals up to £200 are permitted outside the EEA.
There is a £1 cost to deposit money at PayPoints.
A maximum of £1,000 can be deposited in cash every six months.
No program of rewards

3. Chase

Chase Bank launched in the UK in 2021 as a digital-only bank, offering a fee-free current account with cashback rewards and savings features. Owned by JPMorgan Chase, it provides a competitive alternative to traditional UK banks. Chase UK focuses on seamless mobile banking, security, and customer-friendly financial services.

Pros:

Benefits when you spend
Award-winning account
Chase doesn’t charge foreign fees

Cons:

No branches if you would rather do your banking in person.
Cash or checks cannot be deposited into the account.
Overdrafts are not yet accessible.

Best Student Bank Accounts

For students in higher education, student bank accounts frequently provide further advantages over regular accounts. You can open a student bank account once your university admission has been confirmed. For many students, it signifies their independence and marks a new chapter in their lives. For this reason, creating the finest student bank accounts is a difficult yet crucial task for students. These are some of the top student bank accounts, per Money Saving Expert.

1. Santander UK

Student Accounts: Santander Edge Student
Service Rating: 60%
0% overdraft:
- £1,500 in years 1 to 3
- £1,800 in year 4
- £2,000 in year 5

2. Nationwide

Student Accounts: Nationwide FlexStudent
Service Rating: 87%
0% overdraft:
- £1,000 in year 1
- Up to £2,000 in year 2
- Up to £3,000 in years 3+

3. Royal Bank of Scotland

Student Accounts: RBS Student
Service Rating: 47%
0% overdraft:
- £500 in the first term
- Up to £2,000 from the second term until the end of year 2
- Up to £3,250 in years 3+

4. HSBC

Student Accounts: HSBC Student
Service Rating: 49%
0% overdraft:
- £1,000 in year 1
- Up to £2,000 in year 2
- Up to £3,000 in years 3+

Greenest Banks in the UK

People from many walks of life support environmental protection for the planet’s future. There are green banks in the banking industry that can accomplish this as well. These banks are sometimes referred to as sustainable or ethical banks. These are the greenest banks in the UK.

1. Co-operative Bank

The only high-street bank in the UK with a customer-led ethical strategy is Co-operative Bank, which took home the CFI Most Ethical Bank Award in 2021. For the past 15 years, the bank has been referred to as “beyond carbon neutral,” contributing an extra 10% offset year to lower emissions.

2. OakNorth Bank

Established in September 2015, OakNorth Bank is a new digital bank with its headquarters located in London, UK. OakNorth’s primary function is to lend SMEs, particularly those that prioritize sustainable development, between £500,000 and £45 million.

3. Triodos

The Netherlands-based ethical bank Triodos was established in 1980. Additionally, Triodos UK is merely a division of it. Similar to Co-operative Bank, Triodos was the recipient of the 2021 CFI Most Ethical Bank Award. As part of its commitment to sustainability, Triodos exclusively invests in businesses that prioritize agriculture, culture, and the environment.

How to Find the Best Bank Account?

How can you locate the best British bank when you first arrive in the UK? When selecting a bank, keep these factors in mind.

Service Charge: Please check if there will be a discount when you create an account. Inquire if the bank has any exclusive deals for students if you are one.
Cost of Service: Because certain banks may charge a monthly fee, you must ensure that the bank you select is free.
Distance: Which banks are the closest to your house or place of education?

Materials Required

You can schedule an appointment once you’ve decided on a bank. To create an account, you will need the following documents.

Identification (passport, BRP card): Presenting a Student Status Letter from your institution is required if you are a student.
CAS
Reservation list from bank
Extra materials (payment, rental agreement, two 2-inch passport ID photographs)

In conclusion, choosing the best bank in the UK for students depends on individual needs, as each top bank offers unique advantages. HSBC, Lloyds, and Barclays provide extensive branch networks and comprehensive financial services, while digital banks like Monzo and Starling excel in innovation and customer experience. Nationwide stands out for its customer-centric approach, while Santander and NatWest offer competitive rewards and mortgage options. Chase UK, though newer, attracts users with its fee-free model and cashback incentives.

Ultimately, the best bank varies based on factors like customer service, fees, digital capabilities, and financial products. Those seeking traditional banking with in-person support may prefer Lloyds or HSBC, while tech-savvy users might favor Starling or Monzo. For savings and cashback benefits, Chase and Santander are strong contenders. By comparing fees, services, and customer reviews, individuals can select the bank that best aligns with their financial goals and lifestyle, ensuring convenience and security.

Overview of the UK Banking System

Key Components of the UK Banking System:

Central Bank