Graduate Bank Accounts Discussion Area

CazT_2

Hi

I have just graduated and managed not to end up with an overdraft   horrah!!!  but of course  a student loan to pay off booooo.

I have a reasonable wage coming in at the mo and so I have decided to take out the max interest free overdraft on my graduate account and stick it in my Isa to earn a bit of interest ???. I have a Natwest account so overdraft is 2 grand.  Is this a good idea?  Will it effect my credit rating at all?  Sorry if these seem like silly questions but I am a bit unsure when it comes to money matters.

Also when should I pay off my student loan,  should I wait till they start taking it off me automatically, or when I have a bit saved up, should I try and pay it back in big chunks and get rid of the horrible thing??

Any ideas opinions   please.

Ta v much Caz

shor_tae

Hi,

I gratuated last year from uni. I currently hold a graduate bank account from Barclays, which I'm using the overdraft to live on. :-[

Could someone tell me the best deal on graduate loans, if i wanted to borrow £5,000.

Thanx

zcaprd7

Generally speaking, its better to delay paying off your student loan for as long as possible (and even then the minimum requirement) until all other debts are repayed and even a 3-6 month earnings saving pot in case of emergencies.

The loan is (in real terms, the APR is based on inflation) free, as such it is the best you'll ever get, plus you can defer it if you (heaven forbid) lose your job - or even if you start a new business - its based on income.


Shor_tae - I had an HSBC graduate loan at 7.9% APR - I figured out a way to get one at 6.4% APR from Alliance and Leicester (I even asked HSBC if they could match it but the couldn't so I switched - handily there are no penalties on the HSBC loan for early payment).

See here for more info:

http://forum.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Debt;action=display;num=1089827647

jackbremer

I had a Natwest Student Account for three years at University in Manchester.

When I finished, I went in, changed it to a Natwest Graduate Account. They gave me a £2000 offering, which I could split up anyway I wanted in terms of FREE overdraft and FREE 3 year loan.

In order to get this, I maxed out my OD before going to that meeting with the bank manager. I then said I needed a nice OD facility, and a loan to clear my current situation.

I chose a £1000 OD facility, and a £1000 loan, which I pay at about £28 a month for 3 years, with 0% interest - that's better than a student loan!

I also got a Cash ISA at the same time. It's been useless in comparison with spending the £3000 on goodies to sell on eBay at a profit, but hey I earnt about £100 for free over the year (even if on ebay I'd have made several thousand by now)...

Just my 2 pence.... or 200,000

Boroughbridger

I've just had a bad experience with Lloyds TSB.

I applied for a graduate account last Autumn as I was impressed by the £2000 interest free overdraft in year one, £1500 interest free in year two and £1000 interest free in year three. The account was opened and each month my statement says overdraft limit £2000 to be reviewed December 2004. I have been therefore budgeting with the aim of reducing my overdraft before December 2004.

I have just had a bank statement showing interest charged because I exceeded the limit. Knowing I hadn't gone over the £2000) I rang up to be told that the limit has been reduced to £1500 because July is the end of year one - i.e. one year after my course ended. So in fact unless you take out the account the minute you finish the course, you do not benefit from a full year at £2000 interest free. When I queried the note on the statement about a review in December I was told that my limit is still £2000 until December but only £1500 in now interest free.

So after switching from another bank I didn't even get a full year of £2000 interest free and all of a sudden without warning I have to get my overdraft down by £500 to avoid charges. I really feel that I have been misled.

To top it all, during the conversation I mentioned that actually my course had ended in September rather than July because it was a Masters. I was then told that I wasn't even eligible for the account but as they had granted it anyway they would have to honour the account. I had always been clear that it was a Masters and had even sent them the certificate. Seems that they are eager to take on the business when it suits them but are as quick to move the goalposts when it suits.

fragster

if I were you I would definitely be writing a letter of complaint to someone, either HSBC or whoever the bank regulator is, sure there must be one, perhaps to HSBC first saying that if they do not resolve it properly you will write to bank regulator. if they saw your certificate when you applied i would imagine you have a case for complaint

kirbyken

SAME AGAIN (hopefully looking for more up to date info)

Simple one- just graduated will start trainee job soon, on low money for 6 months inirally, and will move to another city soon.
need a few thousand for rent over that period-
WHO OFFERS THE CHEAPEST/BEST GRADUATE LOAN OVER 1/2YEARS?

cheers for any opinion/advice