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[MSE Alana]

This thread is specifically to discuss the

Graduate Accounts 2009/10

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[Kushan]

Good article, as usual. However, I have a slight problem: Lloyd's TSB seem to require you to be in employment in order to sign up, is this the case? Part of the requirement on their website says they need "proof of income" and sadly not all of us graduates have managed to land a job just yet.

I looked on Natwest's site and they seem to also do a £2,000 overdraft over 3 years and don't mention requiring proof of income on their site, either. Is there something I'm missing with their account? Something that might sting me down the line?

I'm looking to open up a new graduate account pretty soon, in fact I was waiting for MSE to update the article =)

Thanks in advance!

[kitatravs]

Is it possible to have two graduate accounts?

My student account was with Halifax and I have a pretty big o/d on that so am keeping that graduate account. However, I also have a Lloyds account (from before uni) with a £1000 o/d I've been living in for the last 4 years. My job starts in September and was planning on spending my first year concentrating on paying off the o/d's.

Just wondering if I'd get away with switching my Lloyds current account to a graduate one too so I'm not paying £12-15 interest every month!

[aless02]

Can I get a graduate account if a) I've never had a student account; b) I would be using an MA as my 'graduate degree' rather than a BA. Also, do I need to use it as my main bank account or can I just keep it secondary to take advantage of the no-interest overdraft?

[MSE Alana]

Hi,

Thanks for your comments, I just want to make sure you have seen the drop-down table, which appears when you click on the image that says 'Full table of all 2009/10 graduate accounts'?

This may help to answer some of your questions, as it has full details of the big banks graduate accounts (including eligibilty criteria and whether they allow you to have other graduate accounts).

As far as I'm aware Lloyds don't require you to have an income, but if you are switching to them you must pay at least £500 into the account every month.

I hope this help,

Alana

[kitatravs]

Ahh, awesome. Thanks

[ISA Aspirant]

What does the Lloyds TSB Graduate account mean when it says you must pay at least £500 into the account per month if you are switching? Is this requirement satisfied if I deposit £500 from my HSBC current account into it and then immediately transfer it back? Is it just to keep it active?

[MSE Alana]

Hi,

We have had confirmation from Lloyds and you don't have to be employed to qualify for the account, but if you are employed you should bring proof with you when you apply.

Alana

[b100]

Originally Posted by ISA Aspirant

What does the Lloyds TSB Graduate account mean when it says you must pay at least £500 into the account per month if you are switching? Is this requirement satisfied if I deposit £500 from my HSBC current account into it and then immediately transfer it back? Is it just to keep it active?

Yes, i would also like to know what this means. I called up Lloyds to ask and the guy on the phone had no idea. I explained that i have not been able to find a full time job and therefore my part time salary varies depending on how much overtime i can get etc, so i might not be paying £500 each month. Does anyone know if we can simply transfer £500 in and then back out at each month?

[Miss J]

I currently have a Halifax Student account, the overdraft facilty is due to be withdrawn in August as it will be 1 year in September since I graduated from university. I'm not at all clued up about Graduate accounts, but have already been in touch with Halifax to find out what happens when my overdraft is removed. According to them if I am unable to pay back the overdraft which is currently at the max, £2750 then they will close the account and enter into an arrangement with me, whereby I agree to pay a certain amount back per month. The problem with this is that this will show on my credit report as an unauthorised overdraft. I am interested in transferring to another Graduate account but am concerned that I may be declined. I have another current account with another provider with an overdraft on it, which I get charged a small fee for each month, so couldn't close that account down. I notice that some banks ask that the current account is closed in order to open a new account, would closing and transferring my Halifax account be enough to qualify or would I also have to close my other current account down? Does anyone know if the current accounts are offered on strict credit checks? I ask because I have recently been turned down by Halifax for a Loan to pay off my overdraft and a few other debts that have accumulated when studying, because they said I had too much debt and needed to reduce this before they would consider me for a loan? Any advice would be gratefully received.

[newgrad]

I've posted a question in he loans section, but I have to question the advice given here.

I have been to Natwest, Barclays, LTSB and HSBC.

They ALL said that they will open a graduate account but will only give a loan if you are currently earning. An offer letter showing salary is not good enough.

What's the point of graduate accounts then?

[ruthie_w]

Hi there, the Graduate Accounts article was great and very informative. I devided that Lloyds looked like the best one for (I'm currently with Natwest as my student account was with them. But they've just cut my overdraftt to £1000, and I need a bit more than that).

So I went into Lloyds today but was told that I can't open a Graduate account with them, as I didn't have a student account with them.

Has anyone else come up against this problem?

[newgrad]

If what Martin has posted is true, could he please distribute it to bank staff because half of them don't seem to have a clue when I ask.

[loomis]

Does the 0% interest period run from year the account is opened (i.e 2009) or the year graduated (2006)?

I have appointment with Lloyds set up to check whether I am eligible for this. But since I graduated exactly 3 years ago, would the 3 years 0% interest be available to me from now to 2012 - OR will it already have expired in that interim 3 year period between 06 and now, any ideas?

[sparx14]

I disagree with the idea that if you have no debts, then you should get the biggest overdraft possible, take it all out and put it in an ISA.

When I first became a student this is exactly what i did, thinking I can make loads of interest from the ISA whilst paying nothing on my interest free overdraft.

Indeed it did make me money. However, last Summer I chose to apply for a mobile phone contract, and was turned down for bad credit. I was shocked, since I have never had any debts what so ever, moreover I have had a balance of over £6,000 split between my bank accounts for the previous 3 years so I can clearly afford the contract. After checking my credit rating on creditexpert.com's free trial, the only negative feature to my name was that I had been, and was still currently overdrawn in one of my bank accounts (because I had taken out the overdraft and put it into a high interest bond!). I can only assume that my choice of putting my overdraft into a high interest bond was the reason for being rejected, extremely annoying since in reality it is the most sensible thing to do!

[robgriz]

This may seem like a stupid question, but if I had my student account with Natwest and have near enough maxed out the overdraft limit (about -£1550) and decide to switch, what happens to this overdraft debt? Is it 'paid off/taken on' as such by whoever I take up the grad account with (eg Lloyds), or would I have to pay it off myself before I close the Natwest account?

[tasty_snacks]

i started a Msc after in january this year (i graduated originally in 2004), and found that the best way to apply for accounts was online. i visited branches of abbey, natwest and rbs, and spoke to the call centres, but received different answers to the same questions. the online application is straightforward enough.

re: loomis' question, as far as i am aware the interest free aspect starts at the point of graduation. i tried to swing this one for both me and my partner a couple of years ago and they were having none of it!

[jadgebag]

I have an Overdraft with my Natwest Graduate account which I've just realised is only interest free up to £1000 now it's the second year after my graduation.

I am going abroad in November for a year so I have some savings with a Natwest Cash ISA, some of which I have had to transfer into my Graduate Account to stop any interest accruing now my OD has gone down to £1000.

Without losing any of my savings, what's the best thing for me to now do? I can't seem to open up another Graduate account because it's just over 12 months since I graduated. I also can't open up any accounts which require a monthly payment as while I'm abroad I won't be working regularly enough to meet any criteria like this.

What's the deal with the Natwest Graduate Loan repayment system? Would this be worthwhile? I know somewhere down the line when I'm abroad my OD will go down to £500 interest free so I was hoping to keep £1500 in my account to use at the end when I may really need it. I don't mind paying a small amount of interest on this just before I come home but don't want to come home to massive debts!

I'm very confused about the best route to take. I don't want to take out a Graduate Loan because with Natwest they seem to acrrue interest even if you take the confusing '12 month holiday' from repayments. Seems quite ridiculous if you ask me.

What should I do so I don't lose all my savings into my OD? If I go into branch will RBS allow me to open a new Graduate Account with the £1500 interest free OD for 2nd year graduates? If I leave that £1000 in my Natwest account will they swallow it up at some point? I'm scared to ring up and ask incase they do - my flights are booked and non refundable!

Any help would be great, hope I've explained the situation well enough!

[b100]

Originally Posted by sparx14

I disagree with the idea that if you have no debts, then you should get the biggest overdraft possible, take it all out and put it in an ISA.

When I first became a student this is exactly what i did, thinking I can make loads of interest from the ISA whilst paying nothing on my interest free overdraft.

Indeed it did make me money. However, last Summer I chose to apply for a mobile phone contract, and was turned down for bad credit. I was shocked, since I have never had any debts what so ever, moreover I have had a balance of over £6,000 split between my bank accounts for the previous 3 years so I can clearly afford the contract. After checking my credit rating on creditexpert.com's free trial, the only negative feature to my name was that I had been, and was still currently overdrawn in one of my bank accounts (because I had taken out the overdraft and put it into a high interest bond!). I can only assume that my choice of putting my overdraft into a high interest bond was the reason for being rejected, extremely annoying since in reality it is the most sensible thing to do!

If the overdraft is authorised then this should not affect your credit file. I have two student overdrafts with two different banks and put the money in ISA's and have since managed to get two credit cards and two phone contracts without any problem.

When i checked my credit file on credit expert everything had a green light thing (as opposed to a yellow or red one) next to it, even my current accounts with the overdrafts. Agreed/authorised overdrafts would be pointless otherwise. Did you call credit expert for advice on possible reasons for the rejection?

[Miss J]

Anyone know which is the best graduate account to try for when your credit score isn't brilliant? My own bank declined me a loan a couple of months ago and this is showing on my credit file.