NatWest Student Account

stargazeypie

Hi,
I'm currently a university student, with a Natwest student account, which allows me a free overdraft of around £1600. The deal is that when you graduate, it turns into a graduate account, and the overdraft remains free for a further 12 months. After that point interest starts accumulating etc.

However, I was supposed to graduate this summer, at the end of a 3 year degree course. Because of one thing and another, I have found it necessary to defer my exams until the August resit/postponement week. So, I am still a full time student until the 1st of September. The uni have given me a letter to confirm this. But Natwest have automatically changed my Student account into a Graduate account, and the Natwest cashier that I spoke to said that this could not be undone, because they can only extend it in full years, not just change the end date. So, effectively, I have lost 3 months of my interest free period.

It's not the end of the world, but it's a nuisance, and seems somewhat unfair. I'm not in a position to start looking for a full-time job, and earning money, because I'm still studying (rather frantically at this point), and because the student loan doesn't cover the summer after a 3 year degree course (not completely unreasonably), I'm not sure what I'm living on at this point, and so making full use of said overdraft. I have no idea where I'll be in 9 month's time, hopefully in a position where the bank's inflexibility won't affect me too much, but I can't be sure.

What I'm hoping is that somebody might be able to tell me whether I've been incorrectly advised, and if not, if there is any way that I can get round this. I do realise that this is a product, not an entitlement, but it is annoying!

An epic post, for such a small matter, but I wanted to be clear. Thanks to anyone who reads it, and even more thanks to anyone who replies.

HopeAndDriftWood

When my sister needed to add 4 months on to her overdraft, she had to write to them as soon as she found out, and provide evidence to prove it, before her account changed. They said once it had changed, it would be irreversible.

She managed to miss the deadline, but had only used £210 of her overdraft, so she paid this back and opened a new student account for a year at the branches discretion.

You could ask them about that? Otherwise, maybe you could get another student account, or try and work some odd hours to pay off some of the overdraft? Usually the graduate account has some interest free, so you shouldn't need to find it all.

Absinthe_Fairy

Perhaps you could work this to your advantage? Once your account changes to a Graduate account you can apply to increase the interest-free overdraft to £2000. I don't know if they credit check this or if it is dependent on having a job, as I never bothered, but when I had to increase my overdraft to the full £1600 allowed as a student I had no problems.

They don't start charging interest on the full overdraft after a year - you get a tiered overdraft for 3 years. 1 year after graduation the interest free amount drops to £1000 (only the interest free amount, not the overdraft limit itself), 2 years after it drops to £500 and 1 year after, it drops to £0.

I graduated 3 years ago, and it's only this month that my interest free overdraft is no more. I still have an overdraft limit of £1600, I just pay interest on it if I use it.

mipage

If you're strapped for cash, apply for the extra £400 the graduate account gives you, I did this a couple months ago actually even though Natwest had me down as finishing in 2010 (my 4yr course ended up taking only 3 years - but I needed the £400 badly at the time). It is credit-checked but you can do it over the phone and have it in your account within 48hrs.

Other than that you could try going down in person with a letter from your university confirming you are a student until 1st September and asking for your account to be returned to Student status, acting like it's the most normal request in the world. I think it's unlikely though.

Personally I wouldn't care about the paying it back in 9 months time thing, in 9 months you'll (hopefully) have a job and be more financially secure than you are now.

stargazeypie

I wish I was certain I'd be financially secure in 9 months time. It'll most probably all be fine, but...

Anyway, I think I found my answer:

http:/ /www. moneysavingexpert. com/ banking/ graduate-bank-accounts

(link removed as new user - just take the spaces out)

So long Natwest. Should have been more helpful.