Top Graduate Accounts 2011/12 Article Discussion

Former_MSE_Alana · 3 August 2011 at 9:08AM

This thread is specifically to discuss the

Graduate Accounts 2011/12

Article

Click reply to discuss

mrbob · 6 August 2011 at 5:36PM

Hi guys,

I'm currently going into my second year after graduation, and the overdraft on my HSBC graduate account is at the interest free limit. I have savings that I could use to get rid of the debt if needs be, however since looking at other graduate accounts on offer, I have been thinking of possibly opening another up.

I have been looking at the RBS, Lloyds, and Barclays Graduate Additions accounts. The Barclays one seems quite good despite the monthly charge, as I will get breakdown cover and mobile insurance too.

Therefore I was wondering if someone could help me with a few questions.

Is it wise for me to seek another 0% overdraft, or should I just use my savings?
Can I open any of the accounts I mentioned alongside my current HSBC graduate account?
If I do take out another overdraft, could this potentially affect my credit rating?

Many Thanks,
mrbob.

atypical · 6 August 2011 at 6:35PM

mrbob wrote: »

The Barclays one seems quite good despite the monthly charge, as I will get breakdown cover and mobile insurance too.

£7 x 12 = £84/year. You can get equivalent breakdown cover for £26. Would your mobile phone insurance cost more than £58?

mrbob wrote: »

Is it wise for me to seek another 0% overdraft, or should I just use my savings?

If you use your savings to pay back the 0% overdraft you lose the interest that you would otherwise be earning on it. The best instant access rates are around 3%, so for every £1,000 you pay back on the overdraft you lose £30. It's up to you if it's worth the effort of opening another account to save that kind of money. Plus you have to consider how financially disciplined you are. Are you sure you won't end up spending the overdraft and your savings?

mrbob wrote: »

Can I open any of the accounts I mentioned alongside my current HSBC graduate account?

If you look at this table you'll see that only HSBC, NatWest and Santander allow you to have other graduate accounts.

mrbob wrote: »

If I do take out another overdraft, could this potentially affect my credit rating?

No one can answer this for sure and it depends on who you apply to as each bank will score you differently based on your credit history. You could argue that if you use your overdraft responsibly your score will increase. You could also argue that having so many overdrafts means you have too much access to credit so your score could decrease. Read this article for more info.

grizzly1911 · 1 September 2011 at 5:23PM

I'm with atypical on this one.

If you have the savings then I would use these to "manage" your headroom under your existing O/D limit. Opening another account will only serve to complicate your arrangements.

The savings interest rate suggested is at the top range, yours may well be much less. If you get hit by unauthorised O/D fees/charges/returned item fees these would easily wipe out any benefits.

Quite why you would want to take on a monthly account fee as a student is beyond me. I am sure cover could be arranged elsewhere more competitively if you feel that is necessary.

Santander does over insurance in its package but it has limitations and excesses payable.

lattenrost · 15 September 2011 at 9:25PM

Has anyone tried opening a graduate account with RBS or Lloyds?

While the MSE article says their overdraft limits are guaranteed, it says "up to" in the account details for both banks.

It would be great if anyone could shed some more light on this. I've always thought "up to" means that you might not get the maximum possible amount.

moneyMum_3 · 20 October 2011 at 7:00PM

My daughter has had a Nat West student Account for the last 3 years. She graduated this year and spent 8 weeks summer travelling returning early this month. She approached Nat West in the last couple of weeks about a Graduate overdraft, both by phone and at her local branch, but was told she would have to wait at least 3 months because she hadn't used her account during the 8 weeks she was travelling. This is despite having 2 pay checks of £500 paid in during that 8 weeks and starting a job on Nov 1st with a £20K plus salary.

She has also visited LLoyds TSB but was told she couldn't have a graduate account with a 0% overdraft as she hadn't had a student account with them.

Does anyone have any suggestions as she needs to get a 1 year london travel card and pay one months rent before she receives her first months salary?

Thanks

Benergy · 24 October 2011 at 12:12AM

Can she move her current graduate account to another provider and increase the overdraft limit?

LordSimpson · 15 November 2011 at 11:04AM

Just applied for a graduate account at RBS and apparently the don't allow you to join if you are over a year out of uni [First tried online then called my local branch to confirm this as I graduated in 2010] even thought it doesn't mention this on there site and only states you have to have graduated in the past 3 years :mad:

Also just to mention Im a Halifax student account holder so didn't move in my first year as it was a better deal, also they extended my overdraft deadline till December because they made a mistake on the account [attempted to remove the free overdraft a few months out of uni] so might want to remove that advice about not moving if you have an account already since you could loose out on a better long term deal?

LordSimpson · 16 November 2011 at 12:11PM

Ok got in touch with someone at rbs who isnt a secretary and apparently there isnt any weird 12 month limit so if you get hit by this just ask to speak to someone who actually deals with applications and hopefully they will realise that its a mistake [mine checked the official terms and found nothing to do with a 12month limit]
Hopefully this will help someone

Willem-de-Blois · 7 February 2012 at 9:55AM

I'm already with the Halifax but I am paying about £33/ month for my overdraft. I'm also paying about £50/ month as a minimum charge on my credit card debt which is around £3000.

The thing is, I've been offered a job in Bath. For the first 6-month's probationary period my salary will be £14000 pro rata. A job after 6 months isn't guaranteed but I'd like to think I'd get a higher salary if the job was made permanent.

The thing is, at the moment, I cannot afford to move to Bath for this job because I've nearly maxed out my overdraft and my credit card. I need some cashflow to pay for two month's rent in advance and agency fees etc.

There are NO jobs in my local area so I have to leave sometime. Will my local branch manager be sympathetic that I cannot afford to be trapped here by my debt but at the same time, I currently cannot afford to move to Bath?

randomfundraiser · 6 August 2012 at 4:30PM

Hi, ive just spent the day on the phones with RBS, granted they do have the best graduate account, however i was informed that they do not allow you to have a second graduate account with another bank, despite what the graduate bank accounts table states. they also hands down refused to transfer my overdraft over to them from HSBC, ive got an overdraft of around £1200 with HSBC and a £400 student credit card, they essentially laughed at the idea of giving me an account with the 2000 overdraft limit and allow me to transfer my debts even though I have a fairly decent paying full time job with a supermarket while I look for graduate employment.
my credit rating is mid level 3/5 on noddle so im really not sure what to do,
If i need to be in the black to open a graduate account, frankly whats the damn point
also, going back to the bank accounts table, on the RBS website the amount they offer has changed from a garunteed 2000 to "up to 2000"

sorry for the rant, just having a bad day, any advice would be appreciated

Top Graduate Accounts 2011/12 Article Discussion

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free