In this work, the researchers intend to establish the criteria used by undergraduate students in Tanzania in choosing their banks. Mainly the work intends to fulfil the following objectives; Firstly, to determine the products/services' characteristics considered important by students and how these characteristics are prioritised according to their importance. Secondly the work seeks to evaluate theory behind evaluation of banking services, and thirdly, to determine how banks can differentiate their offerings to students in future and improve the perceptions of their services to students. The research was conducted as a survey involving a sample of seventeen institutions of higher learning in Tanzania. Students were provided with a survey form and requested to rank various factors as they were included in a survey form in the order of their preference in selecting which bank to bank with. The results reveal that factors relating to service quality to be the most important criteria prioritized by student in their bank selection process. The factor was followed by financial factors comprising of factors like low service charges and low interest rate charged by the bank. Delivery system comprising of factors like absence of queues and availability of ATM's were also highly ranked. Other factors that were not included in the survey form also emerged to be among the factors prioritized by students in their bank selection process. The results proves some similarities from previous researchers and at a certain point there are variations from the findings of previous researchers in other countries.