### Natwest Graduate Account Overdrafts - A WARNING ###

fredquimby_2

Moneysavers,

Part of Natwest's graduate package is to provide an interest-free overdraft of £2000, falling to £1000 after the first year of graduation, then £500 after the second year, then to zero after three years. Their years start on the 1st July, so if you graduated the summer of 2004, then your £2000 overdraft lasts between 1 July 2004 to 30 June 2005, £1000 between 1 July 2005 to 30 June 2006, and so on...

However they don't tell you this until (as I found out, never in the promotional literature but always by the hard way) its too late and they actually charge you 17.8% APR for the remainder over the interest-free limit. This is despite assurances that they would notify me well in advance of any such change. However, if spotted early enough, the charge can be more than offset by the interest it could earn elsewhere if your overdraft remains unused.

I only found out this after complaining to another Natwest operator after the event, who went on to lecture me about how students should be using banks 'ethically' and not take advantage of an interest-free overdraft facility when offered to them. They just don't get it...

muddyfox470

I shall bear this in mind when i graduate

But you do know that your graduate account doesn't have to be with the same bank you held your student bank account with!

You may be able to find a better deal elsewhere! Check out Martins Reports

Cheers

Ian

seonav

This is correct as far as I'm aware but the people to go to are Lloyds IF, and only if you are earning £500 per month - or have a way of inputting this amount in regularly. This will get you the same deal but without the catch. Avoid Barclays - their deal is nowhere near as good. Also - trick with Lloyds - they don't remember to check up on you if you are already a Student Account holder. So you will almost certainly have a few months to get on your feet before you have to make a decision regarding a graduate account. They often won't notice for years but it's not a great risk to take in case they cut the overdraft to zero, and the guilt will probably get you by then!

gingercordial

fredquimby wrote:

However they don't tell you this until (as I found out, never in the promotional literature but always by the hard way) its too late and they actually charge you 17.8% APR for the remainder over the interest-free limit. This is despite assurances that they would notify me well in advance of any such change.

Yes I've found this too, I passed my second "Natwest year" since graduation in July and heard nothing from them to say my interest free overdraft was being reduced (it was never higher than £1000 so didn't expect to be informed after year 1). Last week I rang up to check that the interest free part had in fact gone down, given I hadn't heard. They said I should have had a letter but obviously it's not just me who wasn't informed. Luckily I hadn't gone over the £500 in July so no charges.

I only found out this after complaining to another Natwest operator after the event, who went on to lecture me about how students should be using banks 'ethically' and not take advantage of an interest-free overdraft facility when offered to them. They just don't get it...

Funny then how they keep trying to get me to take an interest free graduate loan whenever I speak to them! And they tried to give me a credit card this time even though I already have one of theirs.

On the other hand, I like NW, they're always very pleasant and helpful when I need them so I've got no plans to move.