HSBC student account review: get £125

HSBC’s student account can get you £125 in cash

You’ve got yourself a set of A-Level results and an offer at university – what’s next? It’s time to think about a student bank account. HSBC’s account can get you an interest-free overdraft of up to £3,000 and some new students can get £125 in cash.

Here’s everything you need to know about the HSBC Student Bank Account.

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What is the HSBC Student Account?

The HSBC Student Account is a current account for students – that is, those studying full-time at a UK university or college. As with other student accounts, you get access to an interest-free overdraft. HSBC has also jumped on the bandwagon, offering £125 to new students, but with the caveat that you have to have had a HSBC current account on 1 July 2024.

The HSBC Student Account offers an interest-free overdraft of up to £1,000 in your first year, potentially increasing by £1,000 per year until your third year. More on this later.

Features of the account

With the HSBC Student Account you can manage your account online, in a branch and on its app. Its mobile app lets you view your balance, make payments, manage your overdraft and set a budget. You can get notifications when you spend, insight into where your money’s going and set targets.  

You can use the card with contactless, as well as set up Apple Pay, Google Pay and Samsung Pay.

You’ll also get access to the HSBC Regular Saver, which is decent but can be beaten by other banks. 

HSBC Student Account welcome offer

Do you get an overdraft with the HSBC Student Account?

With all student bank accounts, you’d usually expect to get an interest-free overdraft of at least £1,000 in your first year, with the option to increase it as you study.

An overdraft lets you run into a negative balance up to your overdraft limit — a £1,500 limit will allow you to go overdrawn by £1,500, showing as -£1,500 in your account. This isn’t free money, you’ll have to pay it back, and it’s cumulative, so any further increases to your overdraft limit will include the money you already owe. 

HSBC offers an arranged interest-free overdraft of £1,000 in your first year, with the option to increase it by up to £1,000 each year until your third year.  

What overdraft could I get with the HSBC Student Account?

Year	Overdraft limit
Year 1	Up to £1,000
Year 2	Up to £2,000
Year 3 (and later years)	Up to £3,000

When you graduate, you’ll be automatically moved to an HSBC Graduate Account. With this account, you’ll get an initial overdraft limit of up to £3,000. This will reduce in later years, giving you time to pay the money back. 

HSBC Graduate Account overdraft limits

You’ll be automatically moved to the graduate account after you graduate. This account still has an interest-free overdraft, but this will gradually reduce over time, which we’ve detailed below. 

Years after graduation	Overdraft limit and details
First year after graduation	Up to £3,000 limit
Second year after graduation	£2,000 at 0%

How to open an HSBC Student Account

Am I eligible for an HSBC Student Account?

To get the HSBC Student Account you need to:

• Be 18 or over
• Live in the UK and have lived in the UK for the past 3 years
• Have been accepted onto a full-time (or part-time if you’ll be receiving a Disabled Students’ Allowance) course at a UK university or college
• Not have another student account elsewhere

Unfortunately, international students aren’t eligible for this account but there is a HSBC International Student Bank Account you can apply for. 

How to apply for the HSBC Student Account

Opening a student account with HSBC is really easy. Before you begin, you’ll need to have the following handy:

• Your address history for the last 3 years
• Details of your income and how you’ll cover your expenses 
• Proof of your identity and address
• Details of your course and where you’re studying
• Your 16-digit UCAS status code. 

Here’s what you need to do to get an HSBC Student Account:

1. Go to the HSBC website and select “Apply now” – if you’re already with HSBC, you can apply online and your existing account will be upgraded. 
2. Confirm on the next screen that you meet all the criteria and that you have everything you’ll need to hand, both listed above.
3. Fill in the form – you’ll need to answer questions about your course, your income and tax status. This is where you’ll be able to ask for an arranged overdraft and organise a switch.
4. Submit your application.
5. Remember to change your bank details on the Student Loans Company website and make 5 transactions using your HSBC Student Account debit card.

Is there a credit check for the HSBC Student Account?

There is a credit check for the HSBC Student Account. This will include a hard credit check when you open the account and anytime you ask for credit, such as when you request an overdraft.

There’s no need to worry about this! If you’ve never borrowed money before, you’ll likely have a very thin credit report, which means that you haven’t borrowed enough money for the credit bureaus to be able to judge you. As long as you don’t have a running history of missed payments on a credit card or loan, you should be okay.

When can you open an HSBC Student Account? 

You can sign up for the HSBC Student Account right away, though if you’re waiting for your results, you may need to wait for them if you don’t have an unconditional offer. 

This offer may be withdrawn, so you’ll want to get in as soon as you can if you’re interested.

Can my student loan be paid into my HSBC Student Account?

Yes. Your student loan can be paid into whatever account you want.  You may have put your old account into your application for your student loan so you’ll need to log into your Student Loan Company (SLC) account and change your bank details. You’ll need your new HSBC sort code and account number to hand.

How much does the HSBC Student Account cost?

As you’d expect, the HSBC Student Account is free. This means that you pay no monthly fee and no overdraft fees.

There are fees to use the account overseas, which we detail below. 

You won’t be charged if you go over your arranged overdraft – though payments will be stopped until you add money to the account.

Can I use my HSBC Student Account overseas?

You will have to pay a 2.75% fee if you withdraw cash abroad, with a minimum fee of £1.75 and a maximum fee of £5. 

If you’re looking for an account that’s fee-free abroad, Nationwide is a good choice, as you can use the debit card abroad and withdraw cash abroad for free. Or you could look at an extra account from a specialist bank and use it just for going abroad.  

What are the pros and cons of an HSBC Student Account?

Pros

• Overdraft of up to £3,000 by your third year
• £125 in cash for existing HSBC customers
• Switch to HSBC anytime during your degree

Cons

• Overdraft limit isn’t guaranteed
• Not for international students
• Fees to use the account abroad

Is the HSBC Student Account any good?

The HSBC Student account is a really good choice for students, no matter what year you’re in. 

The overdraft isn’t guaranteed, but it can increase year-by-year, which is pretty good. If you want a guaranteed overdraft, the Santander Student Account may be a better option. 

You can get a £1,000 interest-free overdraft with the account in your first year, with the option to increase it by up to £1,000 each year until your third year. This is the same as you’d get with the Nationwide student account and more than you’d get with Santander’s, which caps at £1,500 in your third year.   

Of course, it’s nice to get £125 in cash when you open the account but not everyone can get this.

Are there better student accounts?

The HSBC Student Account is tied with Nationwide on its overdraft offering, with both offering £1,000 in the first year, increasing by £1,000 each year. Both accounts also offer cash, although HSBC does offer a little more.

If you want to use your card abroad, the HSBC Student Account isn’t the best choice, you’d be better set with Nationwide. 

The best way to compare student accounts is to look at the size of the overdraft, both in the first year and in later years. In a tie, you can consider a signup bonus or freebie.

If you prefer banking in-branch rather than online or using an app, you could research which banks still have branches in the town or city you’ll be studying in and choose between these. 

You should be able to do most things online nowadays, but could find yourself stumped if you’re given a cheque, for example. 

You can read our round-up guide on student bank accounts, or read individual reviews via the links below. 

HSBC Student Account vs Santander student account 

	HSBC Student Account	Santander Edge Student
Apply	Anytime during studies – although the cash perk is only available to first-year students	Anytime during studies
0% overdraft years 1-3	Up to £1,000 in year 1 Up to £2,000 in year 2 Up to £3,000 in year 3	Guaranteed £1,500
Overseas use	2.75% fee for withdrawals abroad – min £1.75 / max £5.	Free withdrawals abroad from Santander cash machines
Perks	£125 cash for existing customers	Free 4-year Santander 16-25 railcard

Santander has a lower overdraft overall, but it’s guaranteed as long as you register for online banking and pay in £500 every four months. You can sign up for both Santander and HSBC anytime during your degree, though you’ll need to switch after year 1. Theoretically, you could get the HSBC cashback then switch to Santander and nab yourself a four-year railcard after the first year.