There are masses of new graduates out there who are paying well over the odds for the privilege of an overdraft facility on their bank account.
Most of the high street banks are quick to trumpet their 0% student overdrafts, but what they fail to trumpet quite as loudly is the fact they also have 0% overdrafts facilities available for graduates, too. The problem is, unless you inquire about these specialist graduate accounts, you’re unlikely to be offered one. If you’ve graduated recently make sure you call your bank today to see whether or not you could in fact be entitled to another couple of years of a 0% overdraft.
Finding a bank that offers graduate accounts
Most banks will offer information about their graduate accounts on their websites. If you can’t find information on the website of the institution that you bank with, pop into your local branch or give them a quick call to see whether or not they offer graduate banking. Each bank offers a different graduate banking solution – some offer 0% interest overdrafts for up to three years (gradually decreasing year on year), whilst others offer a 0% overdraft for a period of just one year after graduation. As with student banking itself, it’s up to you to shop around for the very best deal on offer.
A graduate account is a great way to get yourself out of an overdraft gradually
The beauty of the 0% overdrafts that graduate accounts offer is that they tend to reduce gradually throughout the years after study. They’ll usually decrease in £500 or £1000 increments – which means you can gradually reduce your reliance on the overdraft facility. Instead of paying back an overdraft of several thousand pounds all in one go, this tiered withdrawal of the 0% overdraft facility is really good for graduates.
Of all the debt you’re likely to have run up as a student; your overdraft will often be the very first one that you look to pay off, because when that 0% interest facility has been removed the cost of sitting in your overdraft permanently can soon start to rack up. Although a 0% graduate account isn’t forever, it at least gives you a short grace period to get your employment status started, to allow you to repay the overdraft without accruing interest on it.
If you’re interested in other useful articles all about saving money as a student, have a look at StudentMoney.co.uk.
This article was provided to us by the team at StudentMoney.co.uk – the No.1 student money advice and comparison website.