Graduate account

NurseMoneySaver1122

Hi

I graduated in Nov 09 with £1500.00 overdraft and was transferred to a HSBC graduate account. Like most grad accounts, their account offered a 0% overdraft which reduces over time.

Since graduating, I have managed to reduce my overdraft to £400. However, from the 31st July I will start paying interest on my overdraft. I know it may not seem a lot of money, but I am currently looking for work after a horrendous 1st year of Nursing, so I really want to avoid my debt getting bigger.

I've seen a number of offers 100 times better than what I had, eg, Lloyds 0% overdraft: Year 1 - £2000. Year 2 - £1500. Year 3 - £1000.

My question is, is it even worth considering applying for a different bank account when I'm unemployed and not receiving benefits (live with parents & don't want to be another bad statistic!)? I've never switched accounts since I first ever opened one.

Is my unemployment status likely to hinder my application for another graduate bank account?

bottleofred

Hi Claire,

I'm not sure it is worth applying for an overdraft if you are unemployed, as the bank like to see some money coming in as well as going out of the account. The amounts you have mentioned are also more than the £400 you currently owe, so it may end up getting you into more debt if you did successfully move accounts and get a 0% overdraft. It's up to you really.

hello2007

clairem1122 wrote: »

Hi

I graduated in Nov 09 with £1500.00 overdraft and was transferred to a HSBC graduate account. Like most grad accounts, their account offered a 0% overdraft which reduces over time.

Since graduating, I have managed to reduce my overdraft to £400. However, from the 31st July I will start paying interest on my overdraft. I know it may not seem a lot of money, but I am currently looking for work after a horrendous 1st year of Nursing, so I really want to avoid my debt getting bigger.

I've seen a number of offers 100 times better than what I had, eg, Lloyds 0% overdraft: Year 1 - £2000. Year 2 - £1500. Year 3 - £1000.

My question is, is it even worth considering applying for a different bank account when I'm unemployed and not receiving benefits (live with parents & don't want to be another bad statistic!)? I've never switched accounts since I first ever opened one.

Is my unemployment status likely to hinder my application for another graduate bank account?

Yes most banks will want you to be in employment. The interest on £400 will not be very much.

I am same postition as you except that I graduated in December 2010 and have another year of inerest free.

Coperative bank do a interest free overdraft which gives you £200 interest free on one of their accounts. So when you get a job you could apply for this account.

Sharon87

The interest on a £400 overdraft at HSBC's rate of 19.9% is £6.63 a month.

I would suggest putting away your pride and claim JSA. How are you surviving at the moment? Surely you go out occasionally and spend some money, where's that coming from? JSA is £103.60 every 2 weeks for under 25s. All you have to do is write a diary stating 6 things you did to look for work and sign on every 2 weeks. Maybe your JSA could pay off some of your overdraft.

Once you get a job you may be able to get a bank account with an interest free overdraft. But that will run out too. I was in a less fortunate position than you (not living with parents after uni) so I never managed to get my overdraft down.

MrsTUS

I agree with Sharon87 - swallow your pride and claim JSA. Look at it this way, you won't be claiming JSA forever and you'll pay far more into the system once you're working in your chosen field than what you'll take out in the meantime while you need it.

I struggled with that sort of guilt when I stopped work to look after my children and we discovered we were entitled to a range of benefits - even though we could manage without them really.. I thought to myself 'why not?' I've paid IN to the system for X amount of years, I'll require help for X years and take OUT of the system and then when I return to work, I'll be paying IN to the system again for DECADES...

Don't feel bad about it.. and personally, I find your remark 'another bad statistic' to be a little insensitive. Not everybody is as fortunate as you to have your parents to fall back on and take the heat off you. Many people are on JSA who have been made redundant etc and don't have parents who they can move back in with is, yet they don't necessarily want to claim benefits, but have no other options as they have families to support - you are basically labelling them as a 'bad stat' when they want so desperately to be anything other.

hello2007

Sharon87 wrote: »

The interest on a £400 overdraft at HSBC's rate of 19.9% is £6.63 a month.

I would suggest putting away your pride and claim JSA. How are you surviving at the moment? Surely you go out occasionally and spend some money, where's that coming from? JSA is £103.60 every 2 weeks for under 25s. All you have to do is write a diary stating 6 things you did to look for work and sign on every 2 weeks. Maybe your JSA could pay off some of your overdraft.

Once you get a job you may be able to get a bank account with an interest free overdraft. But that will run out too. I was in a less fortunate position than you (not living with parents after uni) so I never managed to get my overdraft down.

It not so easy to claim jobseekers and they can take weeks to process your claim and to pay you any money. The people in jobcentre talk you down to you and do not treat you with respect.

I am looking for work like the OP and have decide not to sign on and to join a agency for a ongoing temp role until I find a proper job.

£6.63 is not alot to pay in interest until the OP can afford to pay off the overdraft.

Sharon87

hello2007 wrote: »

It not so easy to claim jobseekers and they can take weeks to process your claim and to pay you any money. The people in jobcentre talk you down to you and do not treat you with respect.

I am looking for work like the OP and have decide not to sign on and to join a agency for a ongoing temp role until I find a proper job.

£6.63 is not alot to pay in interest until the OP can afford to pay off the overdraft.

My claim when I was unemployed didn't take long. Filled in form online on 26th December (worked xmas day), next day got a phone call, went in a few days later. Got paid first week of January. It's not that complicated.

Without JSA I bet the bank of mum and dad might be paying the OP, either that or she may find she may need to use the overdraft for travelling to interviews/food/meeting up with friends.etc

edinburgher

It not so easy to claim jobseekers and they can take weeks to process your claim and to pay you any money. The people in jobcentre talk you down to you and do not treat you with respect.

I am looking for work like the OP and have decide not to sign on and to join a agency for a ongoing temp role until I find a proper job.

£6.63 is not alot to pay in interest until the OP can afford to pay off the overdraft.

The OP is unemployed. It could be argued that £6.63/mth is a massive amount for someone with no regular income.

Claim JSA, the worst they can say is no.

NurseMoneySaver1122

Sharon87 wrote: »

The interest on a £400 overdraft at HSBC's rate of 19.9% is £6.63 a month.

I would suggest putting away your pride and claim JSA. How are you surviving at the moment? Surely you go out occasionally and spend some money, where's that coming from? JSA is £103.60 every 2 weeks for under 25s. All you have to do is write a diary stating 6 things you did to look for work and sign on every 2 weeks. Maybe your JSA could pay off some of your overdraft.

Once you get a job you may be able to get a bank account with an interest free overdraft. But that will run out too. I was in a less fortunate position than you (not living with parents after uni) so I never managed to get my overdraft down.

Thanks Sharon87. It's not really just a pride thing..more that I'm aware many others need it far more than me; familes, people made redundant and not living with parents etc. I have started applying for any jobs outside of my profession, just to get get me by and pay my debts until I find the right place in Nursing again. That way hopefully I can apply for a different interest free overdraft grad account too. Thanks for your advice!

NurseMoneySaver1122

MrsTUS wrote: »

I agree with Sharon87 - swallow your pride and claim JSA. Look at it this way, you won't be claiming JSA forever and you'll pay far more into the system once you're working in your chosen field than what you'll take out in the meantime while you need it.

I struggled with that sort of guilt when I stopped work to look after my children and we discovered we were entitled to a range of benefits - even though we could manage without them really.. I thought to myself 'why not?' I've paid IN to the system for X amount of years, I'll require help for X years and take OUT of the system and then when I return to work, I'll be paying IN to the system again for DECADES...

Don't feel bad about it.. and personally, I find your remark 'another bad statistic' to be a little insensitive. Not everybody is as fortunate as you to have your parents to fall back on and take the heat off you. Many people are on JSA who have been made redundant etc and don't have parents who they can move back in with is, yet they don't necessarily want to claim benefits, but have no other options as they have families to support - you are basically labelling them as a 'bad stat' when they want so desperately to be anything other.

I completely agree with you saying if you've paid in to the system for X years, then why not take out when needed. After all that's what it is there for; when genuine financial help is required.

With regards to my 'bad statistic' remark, I apologise immensely for my incorrect choice of words and if I upset anyone. What I was referring to is the people out there (who we all know or have heard about on the news), who CHOOSE a lifestyle of playing the system with no genuine justification. I say this knowing people personally in my own extended family who self-admittedly choose this lifestyle. That's the 'bad stat' I was referring to. I would never pass judgement on those who genuinely need financial help...tax is being payed for that privilege after all.

As for me being fortunate to fall back on my parents, I recognise that living my parents at this time of unemployment is extremely helpful to my situation. However, by no means did I "fall back on them". Knowing I would be leaving my post, I put money aside to cover my time of unemployment whilst looking for a new job, in order to cover my usual rent to parents, I cancelled my mobile phone contract and my student loan automatically freezes when earning under a certain amount. Leaving the house only happens if it doesn't cost money. So I have deliberately ensured that my unemployment does not affect my parents, partner of anyone else but myself.

I have worked since the day I got my NI number, paid a realistic rent to my parents since that day, put myself through f/t university whilst working and supporting myself, tried to get a career so my partner and I can continue to struggle, like thousands out there, to get on the property ladder, and actually supported my parents for over a year whilst my Father was out of work. So the assumption that I'm fortunate to have parents to fall back on and take the heat off me I find a little unfair and assumptious.

BeautyandtheBeast_3

my overdraft limit is 500, i have been upto 250 od and only had £1.53 pence fee for been overdrawn (mines a grad account) i wouldnt change as HSBC have been brilliant with me, yet i know others banks have not been so nice to my friends. just be careful xx