Transition from Student to Graduate account

palatine

Hi,

I'm just about to graduate and would be grateful for some advice about moving from a student to graduate account.

I'm with Santander who offer a 1,500 pound overdraft. I am in this overdraft and am wondering what will happen come when I graduate. I'm aware that they have the right to ask for it immediately. I have a job and will get my first pay cheque late September so I will be able to pay off the debt soon after.

I'm aware that banks offer Graduate accounts which also include overdrafts. This is probably dependant on the specific case, but in order to drag me into bank with santander for life, is it likely that my debt will simply transfer to the graduate account? If not, would it be possible to open a graduate account with another bank, take out the necessary money to pay off the debt to Santander and then pay this off in late September?

Any advice would be really appreciated

Super_Whiskey

Most banks will change a student account over to a graduate account automatically. Only difference being the interest fee period will end after a certain amount of time. Check the T&Cs for the account!

cheesetoast

http://www.santander.co.uk/csdlvlr/ContentServer?c=SANDocument_C&pagename=WCSUKPublicaLte%2FSANDocument_C%2FSANDocumentPreview&cid=1324575557407

"When you complete your course you will no longer be eligible for this current account. At this time, these Specific Conditions will cease to
apply to your current account and unless we agree with you before the end of your course that you can have a different facility with us, your
1I2I3 Student Current Account will automatically be transferred to the 1I2I3 Graduate Current Account and the Specific Conditions for the 1I2I3 Graduate Current Account will apply. We will give you at least two months’ notice of the date of the change or, if applicable, closure."

http://www.santander.co.uk/uk/current-accounts/student-graduate-current-accounts/123-graduate-current-account/

"For graduates who have completed a course within the last 3 years, an account with an interest-free and fee-free Arranged Overdraft and in-credit interest balance."

"Year after graduation Arranged Overdraft limit
Years 1, 2 and 3 Up to £2,000

"0% EAR (variable) Arranged Overdraft. No Arranged Overdraft Usage Fees apply."

"Pay in your main form of funding each month, such as your salary
Your account will be transferred to an adult account 3 years after graduation"

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So, it's worth using the interest free years coming up to clear the overdraft, then shop around for the best account for you after that.