Starling Bank has launched its first dedicated student current account, saying it is the first UK digital bank to introduce a bespoke banking product for university students.

The account combines an interest-free overdraft, AI-powered financial assistance, and student-focused rewards.

Starling said the new account includes an AI-powered assistant designed specifically for students, alongside spending tools intended to help users manage their finances while studying and develop longer-term money management skills.

The account offers an interest-free overdraft for eligible students, a 4.0 per cent AER bonus savings rate, and a £50 Amazon gift card. Starling is also giving three student customers the chance to have a year's tuition fees paid.

The launch comes as research from the bank suggests the cost of university living has increased by 47 per cent over the past decade, outpacing both UK inflation at 41 per cent and maintenance loan increases at 32 per cent.

Bernadette Smith, chief customer and banking officer at Starling Bank, said: “University should give you the keys to a good career and a good salary, but increasingly, the cost of studying is leaving students saddled with debt.

“We want to give students the opportunity to have their fees paid for, as well as perks and savvy spending tools that set them up with good money habits that they'll lean on for life.”

Applications are being rolled out this week through the Starling mobile app, with the account available to UK and international students with a registered UK address.

Students first open a standard personal current account before verifying their student status in the app. Eligible customers with at least two years of study remaining from 1 September 2026 can then apply for an interest-free overdraft.

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