How can I avoid HSBC's new graduate interest rates?

Blacksheep1979

Still not received my HSBC letter...

SlyOne_2

maniac886 wrote: »

This is a pain in the @rse but I don't think I can change because all my family use HSBC so in case of emergency my rents can transfer money to me. I will apply probably in January because I have recently applied for a few credit cards so I am gonna wait 6 months for the searches to clear.

Anyway I will be aiming to pay it off asap as soon as I get my old job back!

In your case, it's probably best you open a graduate account with another provider and "downgrade" your HSBC account to either a normal current account or even a basic account. That way, you can still retrieve your emergency cash and enjoy the perks of graduate banking with another provider.

SlyOne.

PS: I think credit searches clear after 1 year? Might be wrong. Anyhow, assuming you've kept your accounts well, other providers will very likely snap you up for a graduate account, so I wouldn't worry too much about the credit searches, unless you intend to apply for a graduate loan as well, in which case it may make a difference.

Bella_b

Hi,

I just read my letter this morning from HSBC and I am FURIOUS! This is the first I have heard of interest on top of graduate accounts! I am currently £100 or so over my overdraft limit and will now it seems have to pay huge interest to HSBC because of this! I don't know what to do because I just graduated in June, and they have given me no warning about this! They are trying to get people to move over to their Graduate Plus accout offering a free flight, but it doesnt seem worth it. You do get an interest free account with that, but you have to pay each month for having that account. That doesnt seem right to me. Bank accounts should be free to use.

HSBC has been calling the house asking for me, and I don't know what to do!
Please help! What are my options? I don't have a job as yet, but have previous statements.. can I still get a graduate account with another bank?

Thanks,
Bella

[Deleted User]

Yes you can please read Martins guides on the main website

Bella_b

Oh ok thanks, thought Martin only had an article about student accounts not graduate ones.

[Deleted User]

check again

Bella_b

I've read it now, seems like Natwest and RBS are the ones to go for! But the article is dated July 06, do any mods or anyone have any idea if it is likely to be updated soon?

danish

yes, i think the artical is a little dated (for example it doesn't take into the Barclays account I have just taken out).

Have a good look on all the major banks websites, most offer a graduate account or a range of grad accounts. If you have any questions ask them on the forum and im sure someone a lot wiser than me will answer you.

Chin up!

[Deleted User]

A bit of research pays dividends.

MLC

I got the standard letter today saying my terms and conditions were changed yesterday! I was too late to get to my branch so rang the telephone banking service. They were useless and didn't appreciate the fact that they had changed my account without giving me any notice. Even when I spoke to “Manager” I was told that only branches can resolve complaints about graduate accounts as telephone banking don’t deal with them. I was livid!! :mad: Finishing work early tomorrow and going to RBS and Lloyds TSB. I just hope everyone who's threatening to leave does. I went to Abbey in Leeds last week, but was told the interest free overdraft is only applicable to people who have previously had student accounts with them.

I had a quick look around and Barclay's graduate account looks good, here's the overdraft details:

- Year 1: up to £3,000
- Year 2: up to £2,000
- Year 3: up to £1,000
- Year 4: up to £500
- Year 5+: up to £200.

Good info. Does anyone have any experience of Barclays, I'm sure I've read in the past that they've got a poor customer record.