Exploring Postgraduate Bank Accounts for 2017

Are you approaching postgraduate study and in need of a bank account?

Or are you looking to switch from your current bank account to benefit from some of the perks available to students (including those on Masters and PhDs)?

Well then this blog is for you!

While we are by no means financial advisors, we are able to introduce some of the options available for Masters or PhD students in the UK - and offer a few tips for making sense of student banking now you're a postgraduate.

There are a whole range of accounts currently available to postgraduates in the UK. Whether you’re a domestic or international student, you should be able to find the ideal one for you.

Here's a quick summary of the different types of bank account you may be able to consider:

Student accounts

You may already be familiar with student bank accounts. These are available to undergraduates and offer benefits such as interest-free overdrafts, discounts and other bundled perks.

What you may not know is that most student accounts are also available to postgraduates on recognised Masters or PhD courses.

If you already have a student account you can probably extend it for your new degree. If not, you may be able to open one with your current bank, or a different provider.

Note that some student accounts may require you to be studying a full-time course. This means they may not be available for a part-time Masters or PhD.

Graduate accounts

If you've recently completed a UK undergraduate degree, you could be eligible for a 'graduate account' from your existing bank, or another.

As their name suggests, these products are generally designed for graduates seeking work. They therefore offer financial perks such as favourable loan terms, but may require minimum monthly deposits or other commitments (the accounts generally assume you are earning a salary).

For these reasons, graduate accounts may not be ideal for post-graduate students (and may not be available to applicants who are still in full-time education).

Postgraduate accounts

Some banks offer accounts designed specifically for postgraduate students. These tend to combine some of the benefits of a classic student account with those of a graduate account. You'll have access to interest-free overdraft terms and some perks, but may also be able to borrow additional money to cover course expenses and living costs.

On the whole, postgraduate-specific accounts are quite rare. Instead, most banks simply offer a continuation of their student accounts.

So, which account should I go for?

It really depends on your circumstances and your needs. We've stuck to student accounts and postgraduate accounts in the tables below, but it may also be worth checking if a graduate account from your current bank is available (and appropriate) to your needs as a Masters or PhD student.

Applying for a student account is relatively straight forward, with most applications conducted online.

As well as proof of a UK address, you will need a copy of your acceptance letter.

The following table lists some of the accounts currently open to UK postgraduate students from the main 'high street banks'.

Accounts are also available for international students studying a UK Masters or PhD.

Unfortunately, international students aren't always eligible for the same overdraft terms and other perks.

Applying for a bank account as an international student

You will need a UK address in order to be eligible for one of these accounts, as well as an acceptance letter from your university.

For more details, you can read our guide to UK banking for international postgraduates.

The important bits:

We hope you find our tables useful, but please note the following:

• The information here is offered as a guideline only - we don't specifically recommend any of these accounts and they aren't listed in any particular order.
• We've done our best to make sure these details are up to date as we post this blog, but you should always check the details of any banking or financial product carefully before you apply.
• Finally, we can't cover every bank account that might be available to postgraduate students. If you think we've missed something great, please let us know via our Facebook or Twitter pages.

You’ll notice that most student (and postgraduate) accounts offer some kind of overdraft. Be careful with this.

Sticking to your budget and not going over your agreed overdraft limit is something which you should practise for life – not just because you’re a postgraduate.

No matter the interest-free overdraft amount available to you, you should always ensure you have a way to pay it back. After all, it is borrowed money.

In most cases, your overdraft is repayable a year after you graduate – and the bank can demand the amount in full, if they wish.

Unfortunately for international students, overdrafts are not usually available to you if you haven’t been ordinarily resident in the UK for at least three years.

Cases vary though, so it’s always worth finding out.

It’s worth noting these terms when viewing deals on overdraft limits.

Some banks offer you a ‘guaranteed’ overdraft limit of a certain amount, upfront, as soon as you open your account. This means you will have instant access to an overdraft.

Others will state that you might be able to get ‘up to’ a certain amount after a certain period of time. This will depend on your financial circumstances, and there is no guarantee that you will ever be entitled to the full amount.

Make sure you know which of these circumstances a bank is offering before choosing to bank with them.

Whatever service you choose, you'll generally need to have some form of account set up by the time your course begins.

This will make it easier to manage and pay your fees (and some universities may not register you without confirmation of your bank details). A bank account is also necessary if you're receiving certain types of funding, such as a UK postgraduate loan.

Similar terms may apply if you're studying abroad: up to date banking details may be a condition of your student visa or residence permit. See our international postgraduate study guides for more details.

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