Graduate accounts - RBS any good?

CatB_2

Right, I have finally decided to make the move from HSBC!

I have been driven steadily nuts by their reduction in counter service for years and I have just moved to a city where it appears that there is no counter service available at all (the 'worlds local bank' does not appear to be very local in Scotland!!).

I have just started a new job and should have all my certificates through from the uni to say that I am a new graduate within the next few months. My first set of wages will go into HSBC but after that I will be looking to change. My choices seem to be, The Royal Bank of Scotland, Lloyds TSB, Barclays or Bank of Scotland (they are the only banks with branches open on a Saturday in this city so that I could actually pay in a cheque or speak to a human being!).

RBS have a good interest rate on their graduate account and Barclays have the largest interest free overdraft. I have some savings and will hopefully have more once my wages start arriving so the interest free overdraft is only of use in that I could then bung it in a savings account.

So, does anyone have any advice regarding either of these? I am currently inclined towards RBS but a bit concerned that they are not so global and I might have more trouble using their cards abroad (although they are Maestro and part of Link I think) and also how secure they are in the current financial upheavals.

Finally, I should have a 5% or so house deposit in the next 6 to 12 months so leaving HSBC would have the disadvantage of making me ineligible for their graduate mortgage (95%) - do you think this is remotely worth the hassle of staying with them for?!

Thanks

Extant

Consider carefully whether or not you genuinely believe that within the next 12 months you will wish to purchase a property. Also remember that although they may offer a 95% mortgage, it will still likely be based on salary. Will your salary be high enough to buy the property that you desire, and meet your regular re-payments and other financial obligations?

For the graduate account, weigh up the features of the accounts and see which you really require. Remember that most graduate overdrafts are designed to start large and then reduce, year by year, and factor this into your considerations around the overdraft.

If you do not require any of the added features that graduate accounts tend to offer, then it sounds as though your choice is going to be influenced mostly by which bank has the best savings rate, if you intend to simply draw down on the overdraft and place it into savings. You may wish to do some calculations.

olly300

Have a look at the rates of HSBC's graduate mortgage if it's good then keep the account open and use it for one or two direct debits. Then go and open an account with another bank. I would also look at saving rates at different banks/building societies and put my money in a third account.

Unless your job stipulates who you can bank with I would spread my cash around different institutions and move it around as needed.

You shouldn't keep your savings in the same bank/building society as your current account particularly if you are going to be overdrawn, as the financial institution can legally help themselves to your savings to pay your overdraft back.

Oh RBS is great if you are in the North or Scotland as they have lots of branches and the fact that you can use your cash card in any ATM is good. However if you ever move to the South of UK you may have problems finding branches.


Also be aware that some banks and building societies are placing restrictions on what you can use the counter service for so you may find that you have to pay in cheques or pay bills through a machine anyway.

astrocytic_kitten

I can't really answer any of your financial questions but I had an RBS graduate account from 2005-2008. I switched to them from Bank of Scotland after having a nightmare of a time with HBOS during my final year of uni and I haven't had any problems with RBS, the staff are always nice and friendly and once phoned me up to let me know that I had gone £5 overdrawn so I could pop some money in the account.

I spent last year living in the south of England and never had problems finding a branch, but I was mainly in Oxford and London - don't know what it's like outside these areas. I know they own Ulsterbank in Ireland and when I'm visiting family in Ireland I can take euros out of their cash machines without being charged.

Of course, I was in my local branch this morning and they had little tubs of Cadburys Heroes on the counter for customers, which might explain my positive feelings towards them at the moment!