Flying the nest for the first time and looking to set up a new bank account for bills

YellowRue · 22 August 2016 at 6:07PM

This week I am graduating from university and will be moving/starting a new job within the fortnight.

I currently have an (empty) savings account and a (overdraft-maxed) current account with Nationwide, however am looking at setting up a bank account for paying bills out of, and potentially another for short term savings (such as for saving towards a car, holidays, or larger spends), and wondering if anyone could offer any advice as to what to look for and what would be best for someone like me who is starting employment with student debt still hitting hard.

Archi_Bald · 22 August 2016 at 8:24PM

Did you investigate graduate accounts?

TartanSaver · 23 August 2016 at 8:16AM

If you'll be paying utility and telecom bills by direct debit, a Santander 1-2-3 Lite will give you cashback on them. The Lite part is important, the full fat version has a £5/mo fee, whereas it's only £1 which you will easily get in cashback. For short term savings, TSB Classic Plus at 5% (on up to £2000) might be a good option for you.
One option would be to use TSB as your "main" account and keep your overdrawn NW account close to the limit, as long as the overdraft remains interest free. Cycle some money through NW after every payday to ensure you're meeting the conditions, but otherwise don't use it. Save up money and make sure you're ready to clear it before it starts costing you. On graduate accounts the bank will often phase out your free o/d by reducing the limit. You should be prepared for this.

Flying the nest for the first time and looking to set up a new bank account for bills

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