The UK has a variety of Banks to go for but what is the one that fits your needs as a student? We have digital and physical banks Some of the financial institutions working closely with universities are Barclays, Santander, HSBC, Metro, Natwest, and RBS. Other digital banks are Monzo, Tide, N26, Starling Bank, Revolut, Monese The student services department at most of the universities help students to open bank accounts in uniformity, but in most situations, you have to make your own decision who to go with and to do this you should consider: 

Types of Bank Accounts

Things to consider when choosing a bank

The UK has a variety of Banks to go for but what is the one that fits your needs as a student? Some of the financial institutions working closely with universities are Barclays, Santander, HSBC, Metro, Natwest, and RBS. The student services department at most of the universities help students to open bank accounts in uniformity, but in most situations, you have to make your own decision who to go with and to do this you should consider:

1. Is this bank close to your university or accommodation? Is the location convenient for you to get to?

2. Is your account "commission-free"? Check what is the cost for account handling.

3. What are the benefits of joining that particular bank, some banks in order to attract students they offer gifts or promotions, visit a branch, and talk to a representative!

What documents do I need?

For international students, you need to show a photo ID, ideally, your passport, your student visa and proof of address, which can be any utility bill or most of the banks will accept a letter from your university's admissions office confirming your address.

How to open a bank account?

Once you make a decision about which bank to go with, the next step will be to make an appointment in the nearest branch to your university of accommodation, normally you can book an appointment online of by phone. You will need to take your documents with you and a representative will help you to fill the application form, after the application, you will receive a letter from the bank with your card, your PIN will be sent separately... Ask your bank representative about their mobile banking and online banking options, they are very helpful.

UK Digital banks tend to have shiny new features the high street banks still don't, 

• The best rates on foreign exchanges
• Free international currency withdrawals
• 24-hour support
• Real-time spending notifications on your phone
• The ability to freeze and unfreeze your cards
• The option to round up card purchases to the nearest pound and put the rest into a savings pot
• Spending reports
• The ability to allocate specific saving pots and spending limits for certain types of purchase

Looking for the cheapest way to send money from the UK? Read our guide.

The digital banking apps

For the most part, the apps themselves are intuitive and easy to use. Each digital bank has its own simple interface, which aside from some custom features (which we'll go into later) are largely comparable. All four of the brands we're looking at operate on both Android and iOS devices.

Monzo: the best UK digital bank for frequent travelers.

Since its arrival, Monzo has been the darling of the London finance world. Back when exclusive codes were required to join, you could hear the Monzo buzz in hushed tones. These days signing up is a little more straightforward (though there are still referral bonuses for signing your friends up).

Monzo has a couple of big strengths. The first is international withdrawals-Monzo lets you pay via debit card anywhere in the world without fees. You can also withdraw up to £200.00 in cash in local currency anywhere without fees per month. After that, you'll be charged 3%. That's more than N26's 1.7% but still falls below the industry average of 2.75-2.99% plus any foreign usage fees (data taken from official websites of HSBC, RBS, Barclays, and Lloyds as of Jan 2020).

N26: the most well-established digital bank

Founded in Germany back in 2013, N26 was the first on the market to reach mainstream success. With a huge following in Europe, N26 pioneered several of the features digital-only banks are now well-known for.

Notably, there are no charges when paying by debit card abroad-though there is a 1.7% charge on withdrawing cash. That's great when you're in a city where card is accepted everywhere, but requires a little extra thought in a few places where cash is still king. We're looking at you, Tokyo.

If you travel a lot, you might consider the N26 You scheme, which costs £4.90 per month. This plan allows you to withdraw money in local currency overseas without any additional charges. That means you'll start saving money if your withdrawals exceed £288.00 per month.

Starling: the best UK digital bank for small businesses

If you've managed to get from one Tube station to another without seeing an ad for Starling, congratulations! As the ads suggest, Starling specializes in helping you to spend and save more effectively. That's mostly done through nifty customizable tools rather than through special interest rates or incentives.

Starling is the only bank we've mentioned here that offers interest on savings on current accounts. That's currently set to 0.5% AER on balances up to £2,000.00 and 0.25% on balances above £2.00 up to £85.00. As of January 2020, some mainstream banks (like HSBC) are offering 2.57% AER. So if you're dealing with big money, it's well worth using a Starling account for your daily spending, while transferring a surplus each month to a more competitive savings account.

Starling offers full current accounts, so you'll have a debit card and all the usual trappings of a bank account. You can also set up a very competitive overdraft, with interest rates of 15-35% based on your credit score starting in February 2020. For context, Natwest, RBS, and HSBC are all introducing blankets 39.99% interest rates as of spring 2020, while Barclays will stand at 35%. Depending on your credit score (and how you use your overdraft) that could mean big savings. Add that to a raft of nifty business integrations and customizable reports, a lot of people back Starling as the best bank digital bank for freelancers and small businesses too.

Revolut: the best digital bank for working overseas

Since securing a full banking licence, Revolut enables you to set up a current account in mere minutes. With the best rates by far for international transfers, it's a great option for if you're living or earning money abroad and plan to regularly transfer cash back to your home country (or vice-versa). Well-known among digital nomads and the like, Revolut also has some of the best rates for international cash withdrawals-free up to £200.00 per month, 0.2% in fees after that.

Should I switch from a traditional bank to a digital-only bank?

In theory, you could use UK digital banks exclusively. In reality, a lot of users find themselves with a more traditional savings account, supported by a digital bank for everyday spending and budgeting. That has a lot to do with interest rates, as well as credit cards, overdrafts, and mortgages-services many of the upstart banks aren't (yet) providing. There have also been reports that going entirely digital can hurt your credit score since some challenger banks don't share your financial data with the nosy folks at Experian and Equifax.

Is my money safe in a digital bank?

With the exception of Revolut, all of the banks we looked into were FSCS protected. So just like a traditional bank account, your money up to £85,000 is protected in case your bank goes under. Of course, if you've got that much money lying around, you should probably look into a savings account with a higher interest rate. With Revolut, your money is safeguarded by Barclays. So if Revolut goes under, they'll pay you back before any other debtors. The main risk here then would be if Barclays were to become insolvent too. While that seems unlikely, it's worth bearing in mind.

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