HSBC Student Account review 2021 | Finder UK

HSBC student accounts review

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HSBC offers a current account designed to help students with their studies.

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123 Student Current Account

Get a free 4-year railcard with the Santander 1|2|3 Student Account

  • A free 4-year Santander 16-25 Railcard to save 1/3 on rail travel in Great Britain
  • Up to £2,000 interest and fee-free arranged overdraft
  • 1% interest (AER) on balances up to £2,000
  • Earn cashback of up to 15% at a range of major retailers

Types of current accounts for students

HSBC has one current account available for students – the imaginatively-named HSBC Student Bank Account.

Below, you’ll learn the benefits and incentives associated with this account.

Product NameStudent Bank Account
Card typeCash / Debit
Debit networkVisa
Min. opening balance£0.01
Account fees£0
Interest (AER)0% AER
Funding requirementNo minimum funding requirement
Daily cash machine limit£300
At end of termAccount transferred automatically to graduate account
Maximum overdraft in year 1£1,000
Maximum overdraft in year 2£2,000
Maximum overdraft in year 3£3,000
Overseas card transactions2.75%
Overseas cash withdrawals2.75% conversion fee plus 2% cash fee

Eligibility

To be eligible for this account, you need to be at least 18 years old, with a confirmed place on a qualifying educational course in the United Kingdom. Undergraduate and postgraduate degrees all count as qualifying courses, as do several other qualifications.

On top of that, you’ll need to have lived in the UK for at least three years, and this must be your only student bank account.

How to open an account

You can apply for an HSBC Student Bank Account online or in-branch.

As part of your application, you’ll need to provide some basic personal details, financial details and information about your course. Your 16-digit UCAS code will serve as proof that you’ve been accepted onto your course.

You won’t be able to complete your application until you have this code.

The benefits

  • Interest-free overdraft. You’ll be given an interest-free overdraft of £1,000 when you open the account. This can increase to a maximum limit of £2,000 in your second year and £3,000 in your final year.
  • Option to apply for a credit card. HSBC also offers a student credit card. As a student current account holder with the bank, you’ll be eligible to apply.

Pros and cons

Pros

  • An interest-free overdraft, with a limit increasing up to £3,000.

Cons

  • No freebies offered with this account;
  • This account is not available to international students;
  • This is not available to apprentices;
  • No eye-catching perks other than an interest-free overdraft.

Frequently asked questions

Do I have to get my student loan paid into this HSBC account?

No. This account comes with no regular funding requirements. See how that compares in our comparison of student accounts.

How much does it cost to use the HSBC student debit card overseas?

When you use your card overseas, you'll pay a non-sterling charge of 2.75%. For, example, if you spend the local equivalent of £250, you'll be charged £6.88.

Because it's a Visa, you'll find it's accepted pretty much anywhere that takes card payments.

Compare options for keeping costs down when spending abroad.

How much does it cost to withdraw cash overseas using the HSBC student debit card?

You'll pay a currency conversion fee of 2.75% plus a cash fee of 2%. For, example, if you take out the equivalent of £150, you'll be charged £4.13 plus the cash fee of £3.00. Withdraw 250 euros (that's around £216.60) at an ATM in Paris and it'll cost you £5.96 plus the cash fee of £4.33. Don't forget that the local cash machine provider may charge its own fee too.

Does HSBC's interest-free student overdraft limit increase over time?

Yes. While the opening interest-free overdraft limit is capped at £1,000, this increases to a maximum of £3,000 in year three. Check out our full comparison of student accounts to see the interest-free overdrafts available to UK students with a breakdown of each account's limit in each year of your course.

Verdict

This is a basic as student bank accounts get. Yes, there’s a interest-free overdraft, which grows up to £3,000 in your third year. But there are no incentives or other money-saving offers available with this account.

There are plenty more student accounts out there, which offer a large overdraft plus a range of freebies, cashback offers or retail discounts. As such, it would be difficult to see why a student would choose an HSBC student account.

Compare HSBC against its competitors

Table: sorted by interest rate, promoted deals first
Data updated regularly
Name Product Account fees Interest (AER) Funding requirement 0% overdraft limit Perks Link Representative example
Santander
£0
1% AER
Min. £500 per term
Up to £1,500
What about the perks? Free 16-25 Railcard for new customers. Valid for four years, with students saving up to one third on most rail fares.
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View details
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 0% EAR variable. Representative 0% APR variable.
Barclays
£0
0% AER
No minimum funding requirement
Up to £1,000
What about the perks? Free 12-month subscription to Perlego the online library when opening a Student Additions account. Offer available between 20.9.20 and 30.6.21.
View details
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 0% EAR variable. Representative 0% APR variable.
Student+ Account
AIB
£0
0% AER
No minimum funding requirement
Up to £1,850
What about the perks? Eligible for AIB Rewards in partnership with Visa. Receive cashback rewards when spending on your Visa card at selected retailers.
View details
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 0% EAR variable. Representative 0% APR variable.
The Co-operative Bank
£0
0% AER
No minimum funding requirement
Up to £1,400
View details
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 0% EAR variable. Representative 0% APR variable.
Lloyds Bank
£0
0% AER
No minimum funding requirement
Up to £500
What about the perks? Everyday Offers - Earn up to 15% cashback from selected retailers when shopping with a Lloyds Bank credit or debit card. Customers must be over 18, be registered for internet banking and activate the offer to be eligible.
View details
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 0% EAR variable. Representative 0% APR variable.
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