HSBC scraps free overdrafts for this year's graduates

crazy_guy

This is worrying stuff indeed - but it seems like HSBC are shooting themselves in the foot by doing this, every new graduate including myself are going to run a mile!

I will be sorting out a new graduate overdraft immediately!

Meatballs

MW1773 wrote: »

Be realistic, we are only talking a couple of pounds a week here. If you are continuing in postgraduate study then there are loans out there that you can take that do not require payment until your studies are completed, once studies are complete the onus is then on the individual to move into employment - and then what's a couple of pounds a week? It seems to me that too many people expect to be given a free lunch once they leave education, at some point you have to stand on your own two feet and face the reality that there really isn't something for nothing in the real world.

I think you need to read the title of the website you are posting on and get a clue. :rotfl:

Why would I want to give £8 a month to a bank when I can keep it for myself? Why would I want to give £8 a month to a bank when I had expected 3 years of free gradually reducing overdraft when I signed up.

Many students are struggling on the brink of keeping to a budget at a moment, whether they have found a job or not. This could be their own fault, or not at all. This would be a very unwelcome change that could spiral them into more debt.

Personally I'm in the position to pay off my overdraft in full at any time but I've been keeping it in a savings account and had planned to for the next 2-3 years!

Meatballs

Have just signed myself up to the A&L Premier Direct site via quidco (£50 cashback). Will try and pursuade the missus to move over (she's also HSBC) and get £40 cashback each refer a friend bonus

Meatballs

Dear Mr x

Student Account

Thank you for your e-message received 24 June 2007

Please be advised that your 4th year Student Account will be converted to Graduate Account during the last weekend of June. Due to this the interest free limit on your Student Account will be reviewed.

Further I confirm that from 16th July, the interest free overdraft limit will be withdrawn on the Graduate Accounts. This has been replaced with the banks best rate of 9.9 per cent on all borrowing (HSBC does not charge a separate rate for unauthorised borrowing).

We are writing personally to all final year students over the next few weeks to advise them that they will start to be migrated onto the standard Graduate account from the weekend of 14/15th July. The 9.9% overdraft rate will come into effect at some point after this date.

Please note that until the conversion is completed you will continue to maintain your interest free student overdraft. The overdraft limit you had on your student account will remain the same.

However, for any time critical matters you can call our Customer Service Centre at 08457 404 404(UK) or ++44 1226 261 010 (International), where my colleagues can assist you.


Kind regards
Sainath Sridhar
HSBC Internet Banking Customer Support

Hopefully this will allow time for people to get started on a new bank account. I suggest people start moving asap.

Blacksheep1979

Am tempted to argue the point with them though having been told when I opened the account that I would get a reducing overdraft and today in the bank itself I may try play for what I've been told I will get.

maniac886

This is really confusing ... I have rang them several times and keep being told different things. One person told me that the OD would be reduced by £500 per year and other told me the above. Not sure whats going on tbh!

TeaBoy_2

i been a customer with hsbc for 10 years, must admit i not been a great customer the last couple as i've had a constant balance of -£1499. Now when i finally graduate and am about to start making a decent wage (i hope) they are doing this!
i've been to natwest today and they were more than happy to take me on and give me £2000 interest free overdraft.
totally crazy idea from hsbc.

Blacksheep1979

I think they're going to lose alot of trade - probably resulting in them reinstating it (well hopefully).

maniac886

If they do start charging the 9.9% I am definately switching accounts!

Meatballs

They'll probably make more money from the students that dont notice than they lose from us lot who have noticed.