Graduating this year - when do banks give you a grad account?

schizometric

I'm due to graduate in July... I was set to graduate last year but I took a year out, so I got a letter from my bank (Natwest) at some point last summer saying they were changing my account to a graduate one.

This means less of an interest free overdraft I think, which is a problemo because I havent a job yet! Does anyone know when the banks do this ish and how large the overdraft roughly is?

whitfreak

Most banks will let you keep your interest free overdraft for a year after you graduate before they start reducing the limit (presuming you havent got them to extend it further than "standard"). So you should have about 3 years to clear the whole lot, and year to knock £500-£1000 off. The change from student to graduate account will happen sometime in the summer. (http://www.natwest.com/personal/borrow/overdrafts/g1/graduate-overdraft.ashx)

However its worth asking your bank considering HSBC screwed their graduates over last year by moving the interest free overdraft to thier premium graduate account (£10/mo) without any real notice (they back tracked somewhat after alot of people left rather than "upgrading"). And there's no telling what is going to happen this year with any of the banks really.

Sealy

WIth two of my student accounts, both banks have given me till 3 years after I graduate to pay back my overdraft. This has been a real life saver to me!

Sealy

whitfreak wrote: »

However its worth asking your bank considering HSBC screwed their graduates over last year by moving the interest free overdraft to thier premium graduate account (£10/mo) without any real notice (they back tracked somewhat after alot of people left rather than "upgrading"). And there's no telling what is going to happen this year with any of the banks really.

I had one of those accounts with HSBC at the time and because of the huge media uproar of complains from students, they cancelled the charge. (BBC news ran a story on it and HSBC promptly sent us all a letter saying that we would no longer be charged and the previous term of intrest free overdraft was kept)

marcais

It's worth getting in touch with your bank and asking about this.

Lloyds switched mine over 6 months after graduation. I thought I had a year and had reduced my overdraft from £1500 to £1000 in the six months as I knew their graduate account had a £750 limit on the interest free overdraft at the time.

They switched me over after 6 months and dropped my overdraft limit to £750 which meant I was then exceeding my overdraft limit when they made the change, and so they tried to charge me for it.

I got in touch and they cancelled the charges, but I'd still say you're better of knowing beforehand exactly what the score is going to be in terms of switchover dates and terms.