Lloyds Student account review: get £110

The Lloyds Student bank account can get you an interest-free overdraft and £110 in cash

If you’re heading off to university, it’s time to retire the bank account that your parents set up for you when you were five and choose yourself a student bank account. 

The Lloyds Student account offers a potential overdraft of £1,500 in the first three years of your degree and up to £2,000 in any further years. You can also get £110 in cash just for signing up.

Here are some of the details of the Lloyds Student account including pros, cons and some alternatives.

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What is the Lloyds Student account?

The Lloyds Student account is a bank account aimed at students heading off to university. It’s similar to an adult current account but offers an interest-free overdraft limit and some extra perks.

With the Lloyds Student Account, you could get an interest-free overdraft of up to £1,500 in your first year. You get the option to increase it to £2,000 in your fourth year of study if you do a longer degree. We cover this in more detail later. 

Alongside most banks this year, Lloyds is offering a cash incentive to new student account customers. For this one, you can get £110 and you don’t need to be in your first year, so even if you’ve already been a Fresher, you can still nab this deal. 

Features of the account

With the Lloyds banking app, you can manage your account, where you can view your balance and latest transactions, change direct debits and transfer money. 

Additionally, you can view your PIN and card details from within the app, not offered by a lot of student accounts we’ve reviewed – how many times have you tried to make a purchase sitting on the sofa and realised you need to grab your card? You can also cancel subscriptions from within your banking app.

If you’re more of an in-person banker, you can also manage your account in a Lloyds branch.  

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

Lloyds also pays 2% AER variable on balances between £1 and £5,000. This isn’t a brilliant interest rate, but certainly better than some current and student accounts. If you have quite a surplus, you might want to look at a higher paying savings account.

Lloyds Student account welcome offer

Do you get an overdraft with the Lloyds Student account?

Most student bank accounts will get you a hefty overdraft — we’re talking up to £1,000 in your first year with the option to increase it over the duration of your degree. The quoted overdraft limited isn’t necessarily guaranteed, except for with the Santander student account, where you’re guaranteed a £1,500 overdraft for the first three years of your degree. 

With the Lloyds student account, you can get an overdraft of up to £500 in the first term and £1,500 for the first three years. If you stay on for a longer degree, you could ask for an increase to £2,000 in your fourth year. 

An interest-free overdraft lets you spend into a negative balance without any fees. It’s a form of borrowing money, so you’ll have to pay it back.

For example, a £1,500 interest-free overdraft limit will allow you to go overdrawn by £1,500, showing as -£1,500 in your account. This is cumulative, so any increases to your overdraft limit will include the money you already owe. 

What overdraft could I get with the Lloyds Student account?

Year	Overdraft limit
Term 1	Guaranteed £500
Years 1 – 3	Up to £1,500
Years 4-6	Up to £2,000

When you graduate, you’ll be automatically moved to a Lloyds Graduate account. This has an overdraft of up to £2,000 to start with. Your limit will then gradually reduce over the next few years, as detailed below. 

Lloyds Graduate account overdraft limits

It might feel a long way off, but it’s handy to know what happens at graduation. You’ll be automatically moved to the Lloyds Graduate account, which has an interest-free overdraft that will gradually reduce over time:

Years after graduation	Overdraft limit and details
First year after graduation	Up to £2,000
Second year after graduation	Up to £1,500
Third year after graduation	Up to £1,000

How to open a Lloyds Student account

Am I eligible for a Lloyds Student account? 

Before you start to apply, make sure you’re eligible. To get the Lloyds Student Account you need to:

• Be 17 or over – you can only have an overdraft if you’re over 18
• Live in the UK and have lived in the UK for the past 3 years
• Have been accepted onto a full-time course of at least two years duration, or a one-year full-time access course leading to a degree
• Not have another student account elsewhere

How to apply for the Lloyds Student account

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

• Your 4-digit UCAS code confirming your place for your course
• Proof of identity, such as a driving licence or passport
• Details of your income and how you’ll cover your expenses – these don’t need to be extensive, you’re not expected to be earning six figures and have a detailed financial plan 
• Details of your course and where you’re studying

Here’s what you need to do to get a Lloyds Student Account:

1. Go to the Lloyds website and select “Apply for a Student Current Account” 
2. Scan the QR code to continue on your phone
3. Answer the questions on screen and select “Continue”
4. Answer the questions about your personal details – you’ll need to answer questions about your course, your income and tax status. 
5. Submit your application.
6. Remember to change your bank details on the Student Loans Company website to get your student loan paid into your new account.

When can you open a Lloyds Student account? 

You can sign up for the Lloyds Student account right away, though you’ll need to have a confirmed place, so if you’re still waiting for your results or applying through clearing, you may need to wait. 

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 Lloyds Student account?

Your student loan can be paid into any account that you want – you just need to log into your Student Loan Company (SLC) account and change your bank details. You’ll need your new Lloyds sort code and account number.

How much does the Lloyds Student account cost?

Completely free! 

There are no monthly fees or overdraft fees to use the Lloyds Student account. You will have to pay fees if you use the account overseas, which we detail below. 

You won’t be charged if you go over your arranged overdraft and there’s no fee if Lloyds refuses a payment due to lack of funds or if it allows a payment despite lack of funds.

This effectively gives you a bit of peace of mind if you find yourself in a difficult situation financially. 

Can I use my Lloyds student account overseas?

You can use the account overseas, but you’ll pay fees. 

Withdrawal of euros inside the EEA / Spending in euros inside the EEA	Free
Withdrawal of foreign currency outside the EEA, and foreign currency other than euro inside the EEA	£1.50
Spending in foreign currency outside the EEA, and spending in foreign currency other than euro inside the EEA	£1.50
Withdrawal of pounds outside the UK	£1.50

If you’re looking for a student 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. Another good option is to have another non-student account to use abroad that won’t cost you anything.

Is there a credit check for the Lloyds Student account?

There is a credit check for the Lloyds 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 or any subsequent requests to extend your 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. We spoke to Experian who said that it’s unlikely that you’d be refused for having no credit history – it’s normal for banks to factor in a thin file when applying for student accounts.

If you’re worried about it, make sure you’re registered to vote, which has a positive impact on your credit score. There may be a small dip in your overall score when you open the account for around 3 months and while you build up a good track record. 

What are the pros and cons of a Lloyds Student Account?

Pros

• £110 in cash when you sign up
• 20% off student union events (at participating universities)
• Switch to Lloyds anytime during your degree
• Manage and cancel subscriptions in the Lloyds app
• Can see all card details in the app
• 2% interest on your balance if it’s between £1 and £5,000 – though you can get better rates elsewhere

Cons

• Overdraft limit isn’t guaranteed
• Overdraft isn’t as large as other student bank accounts
• Not for international students
• Fees to use the account abroad

Is the Lloyds Student account any good?

The Lloyds Student account isn’t as good as other student accounts. There’s a guaranteed overdraft of just £500, but you can get a guaranteed £1,500 from Santander. And the maximum you can get in a three-year degree is £1,500, which is less than half of the potential overdraft you could get from NatWest (£3,250). 

The Nationwide student account offers up to £1,000 in the first year and the option to increase it by up to £1,000 each year until your third year. 

Of course, it’s nice to get £110 in cash when you open the account, but other (better!) accounts offer a cash perk too too.

Are there better student accounts?

There are better student account offerings than the Lloyds Student Account. While it does have a pretty decent overdraft, it doesn’t increase over the term of your degree (unless you’re doing a 4-6 year degree, in which case you’ll get a small increase. 

A cash perk is available from other banks too – this is the highest cash payout you’ll get from a student account this year.

When comparing accounts, you want to look at the size of the overdraft — both in the first year and in later years — and the way you like to bank, whether that’s in-branch, online or using the app. 

If you prefer banking in-branch, take a look at which banks still have branches in the town or city you’ll be studying in, and even on campus, and choose between these. In a tie, you can consider a signup bonus or freebie.

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

Lloyds student account vs NatWest Student account

	Lloyds Student account	NatWest Student account
Apply	Anytime during studies	Anytime during studies
0% overdraft years 1-3	£500 in term 1 Up to £1,500 for years 1-3	Up to £2,000 in year 1 Up to £3,250 in year 3
Overseas use	Up to £1.50 per transaction abroad	2.75% fee for withdrawals abroad
Perks	£110 cash	£100 cash and a 4-year Tastecard

The Lloyds student bank account offers an overdraft of up to £1,500 in your first three years – which is the entire degree for most people. By contrast, you could be approved for up to £3,250 by your third year with NatWest.