Top Graduate Accounts 2011/12 Article Discussion

A question about : Top Graduate Accounts 2011/12 Article Discussion

Hi guys,

I'm currently going into my second year after graduation, and the overdraft on my HSBC graduate account is at the interest free limit. I have savings that I could use to get rid of the debt if needs be, however since looking at other graduate accounts on offer, I have been thinking of possibly opening another up.

I have been looking at the RBS, Lloyds, and Barclays Graduate Additions accounts. The Barclays one seems quite good despite the monthly charge, as I will get breakdown cover and mobile insurance too.

Therefore I was wondering if someone could help me with a few questions.

Is it wise for me to seek another 0% overdraft, or should I just use my savings?
Can I open any of the accounts I mentioned alongside my current HSBC graduate account?
If I do take out another overdraft, could this potentially affect my credit rating?

Many Thanks,
mrbob.

Best answers:

• Hi guys,
  I'm currently going into my second year after graduation, and the overdraft on my HSBC graduate account is at the interest free limit. I have savings that I could use to get rid of the debt if needs be, however since looking at other graduate accounts on offer, I have been thinking of possibly opening another up.
  I have been looking at the RBS, Lloyds, and Barclays Graduate Additions accounts. The Barclays one seems quite good despite the monthly charge, as I will get breakdown cover and mobile insurance too.
  Therefore I was wondering if someone could help me with a few questions.
  Is it wise for me to seek another 0% overdraft, or should I just use my savings?
  Can I open any of the accounts I mentioned alongside my current HSBC graduate account?
  If I do take out another overdraft, could this potentially affect my credit rating?
  Many Thanks,
  mrbob.
• I'm with atypical on this one.
  If you have the savings then I would use these to "manage" your headroom under your existing O/D limit. Opening another account will only serve to complicate your arrangements.
  The savings interest rate suggested is at the top range, yours may well be much less. If you get hit by unauthorised O/D fees/charges/returned item fees these would easily wipe out any benefits.
  Quite why you would want to take on a monthly account fee as a student is beyond me. I am sure cover could be arranged elsewhere more competitively if you feel that is necessary.
  Santander does over insurance in its package but it has limitations and excesses payable.
• Has anyone tried opening a graduate account with RBS or Lloyds?
  While the MSE article says their overdraft limits are guaranteed, it says "up to" in the account details for both banks.
  It would be great if anyone could shed some more light on this. I've always thought "up to" means that you might not get the maximum possible amount.
• My daughter has had a Nat West student Account for the last 3 years. She graduated this year and spent 8 weeks summer travelling returning early this month. She approached Nat West in the last couple of weeks about a Graduate overdraft, both by phone and at her local branch, but was told she would have to wait at least 3 months because she hadn't used her account during the 8 weeks she was travelling. This is despite having 2 pay checks of Ј500 paid in during that 8 weeks and starting a job on Nov 1st with a Ј20K plus salary.
  She has also visited LLoyds TSB but was told she couldn't have a graduate account with a 0% overdraft as she hadn't had a student account with them.
  Does anyone have any suggestions as she needs to get a 1 year london travel card and pay one months rent before she receives her first months salary?
  Thanks
• Can she move her current graduate account to another provider and increase the overdraft limit?
• Just applied for a graduate account at RBS and apparently the don't allow you to join if you are over a year out of uni [First tried online then called my local branch to confirm this as I graduated in 2010] even thought it doesn't mention this on there site and only states you have to have graduated in the past 3 years
  Also just to mention Im a Halifax student account holder so didn't move in my first year as it was a better deal, also they extended my overdraft deadline till December because they made a mistake on the account [attempted to remove the free overdraft a few months out of uni] so might want to remove that advice about not moving if you have an account already since you could loose out on a better long term deal?
• Ok got in touch with someone at rbs who isnt a secretary and apparently there isnt any weird 12 month limit so if you get hit by this just ask to speak to someone who actually deals with applications and hopefully they will realise that its a mistake [mine checked the official terms and found nothing to do with a 12month limit]
  Hopefully this will help someone
• I'm already with the Halifax but I am paying about Ј33/ month for my overdraft. I'm also paying about Ј50/ month as a minimum charge on my credit card debt which is around Ј3000.
  The thing is, I've been offered a job in Bath. For the first 6-month's probationary period my salary will be Ј14000 pro rata. A job after 6 months isn't guaranteed but I'd like to think I'd get a higher salary if the job was made permanent.
  The thing is, at the moment, I cannot afford to move to Bath for this job because I've nearly maxed out my overdraft and my credit card. I need some cashflow to pay for two month's rent in advance and agency fees etc.
  There are NO jobs in my local area so I have to leave sometime. Will my local branch manager be sympathetic that I cannot afford to be trapped here by my debt but at the same time, I currently cannot afford to move to Bath?
• Hi, ive just spent the day on the phones with RBS, granted they do have the best graduate account, however i was informed that they do not allow you to have a second graduate account with another bank, despite what the graduate bank accounts table states. they also hands down refused to transfer my overdraft over to them from HSBC, ive got an overdraft of around Ј1200 with HSBC and a Ј400 student credit card, they essentially laughed at the idea of giving me an account with the 2000 overdraft limit and allow me to transfer my debts even though I have a fairly decent paying full time job with a supermarket while I look for graduate employment.
  my credit rating is mid level 3/5 on noddle so im really not sure what to do,
  If i need to be in the black to open a graduate account, frankly whats the damn point
  also, going back to the bank accounts table, on the RBS website the amount they offer has changed from a garunteed 2000 to "up to 2000"
  sorry for the rant, just having a bad day, any advice would be appreciated
• I spent an hour with RBS this morning and went through the whole application process after which I was informed my application was denied. She couldn't tell me exactly why but suspected it was because I still had my natwest graduate account open and therefore it couldn't possibly process because of that.
  The advisor suggested I close my natwest account (which all my standing orders/direct debits and payroll) comes from, leave it for 1 MONTH for equifax to update, and then reapply, however she couldn't guarantee I would still be offered an overdraft after that time.
  How on earth do you get round that one? Or should I just put up with the Ј500 free overdraft from Natwest with 17.9%APR!? Versus RBS who are Ј1,000 free overdraft for your third year and only 10% APR...
  HELP!
• Unfortunately I have been a victim of the overdraft trap (point five in your article) ... it should be forbidden by law ... how can it be even legal ... since then I hate banks especially lloyds and barclays ... never again ...
• Hello, I'm spending to much money and I'm not working I've spent Ј300 this 2day and i haven't got money now
• Hi all, my HSBC graduate account is also coming towards the end of it's life. I have a Ј1,500 overdraft and a Ј500 credit card. I am still struggling to find a job 2years on since graduating and so aren't getting anywhere out of my overdraft or c/c. My overdraft is soon to be at 19.9% all over, does anyone have any suggestions please?! =[
• My Daughter, on a 4 year degree, opened a Santander student account 2 years ago that offered free gadget cover, laptop, mobile, ipod etc. She has just received a letter informing her thay are dropping the insurance in October. Can they do this as I see Martin saying whatever deal you get lasts the length of the course you are on. Santander know my daughter is on a 4 year course, can they change the deal ?
• Thanks for shared a great post!