Graduate account

petecarter

Hello everyone, I fear I'm in a bit of a predicament.

I use Halifax for all my banking (although Im MORE than happy to move). I completed a degree last summer, a few months after my overdraft charges changed. I used to pay around 1% a month and used the charge as a way of stopping myself spending too much. I didnt set up a student account as i didnt need the additional overdraft and didnt mind the charge. The overdraft charge is now 1 pound for every day I am overdrawn, no matter by what amount. That is fine as im not currently overdrawn, but i may well be in the next couple of months and i cant stomach 1 pound a day.

So where should I get my next account from? I am earning now but wont be over summer so I think all accounts that have minimum pay in amounts are out of the window. I just need an account with a free overdraft for the next 4-5 months until i get myself a 'proper' job.

What are my options? If I havent been clear enough obviously Im happy to clarify things. I just think its annoying how i turned down a free overdraft to be responsible and now that i might need one i cant have one because i arent a student anymore.

Cheers everyone in advance!

Svenena

I have a graduate account with Lloyds. From their website:

"An interest and fee-free tiered planned overdraft of up to £2,000 in your first year after graduation, £1,500 in the second year and £1,000 in the third year."

There's an article on this site about the best graduate bank accounts, so maybe you could start by checking that out? Here: http://www.moneysavingexpert.com/banking/graduate-bank-accounts

blueberrypie

petecarter wrote: »

I use Halifax for all my banking (although Im MORE than happy to move). I completed a degree last summer, a few months after my overdraft charges changed. I used to pay around 1% a month and used the charge as a way of stopping myself spending too much. I didnt set up a student account as i didnt need the additional overdraft and didnt mind the charge. The overdraft charge is now 1 pound for every day I am overdrawn, no matter by what amount. That is fine as im not currently overdrawn, but i may well be in the next couple of months and i cant stomach 1 pound a day.

Depending on how much you will need to be overdrawn, it might be easier to change your Halifax account into an Ultimate Reward Account. There is a monthly fee for the account of £12, but you will get £5 back for every month you put £1000 into the account (it doesn't have to stay there, and it doesn't have to be in one payment) - although I realise that you might not be doing that for a few months while you're unemployed, the first £300 of the overdraft carries no charges.

As you're in temporary employment now, you might find it difficult to convince another bank to give you an account with an overdraft facility at all, never mind a free one, so this Halifax account might be the best option for you. Once you are in regular employment again, you can downgrade the account to a standard Reward Account and continue to benefit from the monthly £5 payment without the fee.

petecarter

Thank you for the replies!

To Svenena, I think the account you mention requires paying in a certain amount each month. Once I have a proper job it would be ideal.

To blueberrypie, this option is one to bear in mind. I will try and avoid an overdraft at all, but perhaps if I am one week away from going into it I can upgrade with them as a last minute rescue strategy.

I have my fingers crossed that by September 1st I have a job in place and a regular income and I'll no longer have such issues!