Can anyone suggest a good bank account for someone with a student overdraft please?

daviduk84

Hello all.

My girlfriend has recently graduated from university and has a free overdraft on her student account with Halifax of about £1700. Since she is no longer a student, this is being changed in August to a different type of account, that will charge her £1 a day for everyday she is overdrawn.

We're hoping to transfer her overdraft to another bank which will offer her more competitive terms until she can pay the overdraft off, but we're both a little in the dark and weary of possible pitfalls regarding hidden charges. (She has been stung before by Halifax for this.)

Any suggestions/advice would be much appreciated.

jambosans

She will need to apply for a graduate account elsewhere.

NatWest (or RBS) offer the Graduate Bank Account. This would allow your girlfriend (subject to status) to take out a Graduate Overdraft Repayment Plan (i.e. an interest free loan). Or she can elect to use the interest free overdraft. I would suggest a repayment plan is the more sensible option as it gives a fixed amount and time over which the debt will be repaid. Even though Halifax current account overdraft fees are rather expensive, she can't have an interest free overdraft forever, so I would take the opportunity and try and repay now.

Most other high street banks (Halifax being the odd exception) offer graduate accounts, so I would shop around. Just keep in mind all the accounts will be subject to status, therefore she can't guarantee getting another overdraft at the same level as her Halifax account.

daviduk84

Thanks very much for your advice. We'll definitaly look into both of the things you've mentioned.

Any other advice very welcome.