MoneySavingExpert.com/Graduate account article discussion area

Former_MSE_Dan

This discussion relates to the updated Best Graduate account article.

Click reply to discuss.

Maddie

I've just read this article after opening a Lloyds TSB graduate account this morning and there are a couple of extra advantages to this one;


1) If you are referred by a friend who has an account with them then you both get £40 (this has just decreased on 1st July from £50 ).

All you have to do is pick up a leaflet from a branch or download one from the internet;

http://www.lloydstsb.com/current_accounts/members_get_members.asp

Then simply fill in your friends bank details. If you don't know anyone who banks with them, I would be happy to provide my details


2)You can have the benefits of the Graduate Gold account for free until August 2006 (usually £10/month). The benefits include AA cover, travel insurance etc;

http://www.lloydstsb.com/current_accounts/graduate_gold_account.asp

(see the text above 'how do i apply' for details on getting it for free)

I definately wouldn't pay £10/month for this, but didn't turn it down as a freebie!


I managed to avoid filling in the account transfer form, (this is the third grad account ive opened now - shhh don't tell anyone!) but I am still supposedly closing my NatWest account.

It may also be useful to know that neith NatWest nor Abbey have contacted me with regards to reducing my overdraft now that I'm in my second year of being a graduate, seem like they've forgotten! In fact my overdraft confirmation letter from NatWest states that my limit is £2000 and the review date isn't until 30/06/2007.

I hope this info is useful.
Maddie

David_Brent

Is it ok to open 2 grad accounts? I am awaiting my results this week, so I want to go sign up for a graduate account pretty soon, im currently with Llyods TSB student account, but I am tempted slightly more to signing up with the Royal Bank Of Scotland,so would it be ok to upgrade my current Llyods tsb account to a grad account as well as opening a RBS account? Are there any legal complications? Thanks!

Maddie

Is it ok to open 2 grad accounts? I am awaiting my results this week, so I want to go sign up for a graduate account pretty soon, im currently with Llyods TSB student account, but I am tempted slightly more to signing up with the Royal Bank Of Scotland,so would it be ok to upgrade my current Llyods tsb account to a grad account as well as opening a RBS account? Are there any legal complications? Thanks!

It is against the terms and conditions of the accounts, but as far as I am aware it is not illegal.

Basically I first opened a NatWest student account, but was offered an Abbey national account at the freshers fayre. I explained that I already had a student account but the man said this didnt matter as the idea was that i would change to abbey as they are better (looking back he was probably just wanting commission). This was fine until they said they were going to take away my overdraft as i was not using the account, so now I have standing orders to move £50 back and forth and haven't had a problem since.

I opened the lloyds account today as I wanted the £50 refer a friend offer. I will prob move £1000 in and out.

The worse thing is that I am actually going to be using the Alliance and Leicester account as my main account (have given new employer A&L details), so that means that all 3 grad accounts will not really be used!

In a couple of years time I will probably close them all as its the interest free overdrafts that I'm interested in.

newsmonkey

Just asked Halifax to extend my student status (am doing a postgrad course this coming academic year) so that's my overdraft secured for another 2 years..

I can't decide whether to open a graduate account now (having just finished 3yr uni course) or wait until 2007 when my Halifax student account stops. If I were to join, say, Natwest two years after graduating, do you reckon that'd count as "year 3" for overdraft purposes, or "year 1"?

Maddie

newsmonkey - I would have thought that it would count as year 1, as they usually work it out from your graduation date, and you will I presume, be graduating again ( I'm not sure if that makes any sense!)

I would give them a quick call and check - free phone number taken from graduate account page on website: 0800 761 033

Quiet_One

I currently have a Lllyods TSB student account, I have just graduated, I applied for a graduate account with the Royal Banks Of Scotland and they said in order to open up the account I would need to transfer banks and my overdraft over to them! Which I didn't really want to have to do, as im quite happy with Llyods TSB! Is there any bank that will allow you open up a graduate account with them without having to use them as your main bank?

phiger

Hi.

I have a graduate account with Lloyds tsb ( i graduated 3 years ago) They are now starting to charge for the interest free overdraft. I notice in the article it says changing to the graduate gold account should be avoided, Why is this?

I am thinking of switching the graduate gold account as it's £5 per month until august 2006 for a £2000 interest free overdraft. Can anyone see why I shouldn't switch?

(I am desperate to decrease my overdraft.. but still 3 years after graduating I am finding it very difficult)

thanks in advance
Gavin

Maddie

Quiet_One - The reason why banks offer interest free overdrafts etc to graduates is to try and get them as customers. There is no incentive for them to offer this if you are not really going to use them as your bank. Therefore they have to at least think that you are going to swp direct debits and use them as your main bank.

Phiger - The graduate gold account only offers £2000 interest free in your first year of graduation, it is no different to the standard lloyds graduate account in terms of overdraft limits. The reason why Martin says to avoid this account is because the benefits that you get for the charge can be found elsewhere for cheaper or even free.

There are banks who offer interest free overdrafts for 12 months on normal (not graduate) accounts. For example Alliance and Leicester who also a reasonable rate after 12 months of 7.9% and offer up to £125 when you join, however they might not give you a very high limit (my limit with them is £200). You could also consider getting a credit card which has 0% on balance transfers and will transfer overdrafts (eg virgin).

If you visit other sections of this site you will get loads of help with clearing your debt. Have you downloaded Martins budget planner? The 'debt-free wannabe' board is a real inspiration and you will find loads of tips there.

Good luck,
Maddie

phiger

Thanks very much Maddie. I realised after I posted the reply (should have read it correctly)

I haven't looked at martins budget planner - I think i need to download it and sort out a plan.

Thanks for the info

wallace_3

I have recently changed my Barclays student account to the graduate additions account which costs £5 per month.

Benefits include:

£3,000 interest free overdraft (subject to status, but I qualified).
Car breakdown cover
Comprehensive mobile phone insurance
Free access to a 24 hour legal help-line
Cardholder protection, including emergency foreign assistance
Personalised keyrings so people can return my keys if I ever drop them somewhere
Discounts at selected shops and restaurants
Commission free travel currency and free delivery to my home

I thought it was very good value, especially since the phone insurance alone would cost £5, and the large interest free overdraft is a big bonus.