Barclays Graduate/High education account advice

VanDer_3

Hi there,

I currently have a Barclays Higher education account with a £500 interest free overdraft that remains around the -£500 mark. I currently work for free but will begin earning from December of this year. Hence I normally transfer money across from my savings account as and when I need it.

I graduated in 2007 so this will be my third year post uni.

I have just recieved a letter stating that on the 21/09/09 I will be switched to a normaly Barclays bank account with interest on my £500 overdraft of 19.3% EAR. The other options available are a 'Graduate Additions' account with a £7 monthly fee - but I would be able to apply for a interest free overdraft up to £500. Or they offer the 'additions active' account for £15 a month with a smaller interest free overdraft of £300 - but loads of benefits/perks I dont need.

My issue is this:
I do not want to pay a monthly fee at all. Having read the article the advice about these fees confirms my initial thoughts. But the article offers no advice on Barclays.
I would be happy to switch to find an interest free overdraft for graduates entering their third year post uni, but what happens to my £500 overdraft? I do have the means to pay it off before switching (an ISA) but ideally do not want to pay it off yet as I am not earning. Can it be taken on by a new bank? Either way I am guessing the banks outlined in the article are the best option.

Some very specific advice needed but would be greatly appreciated.

Thanks

B

Lokolo

You open a new account with a new bank. You get a a £500 overdraft.

You transfer £500 from the new account to Barclays, making it £0 balance in Barclays, and -£500 in new account.

You close the Barclays account.