Most major banks offer graduate bank accounts, together with other financial products and services specifically tailored for graduates.
Graduate bank accounts are traditionally used for day-to-day banking activities, and as such often pay rates of interest that are a lot poorer than savings accounts.
Graduate bank accounts offer overdrafts, and limits on these will vary between banks. Many banks offer different limits on these overdrafts over successive years.
If you have arranged an overdraft facility on your account, you will be charged an authorised overdraft rate - the rate of interest that you will pay on your overdrawn balance if you remain within your authorised limit. Some banks offer interest-free overdrafts on their graduate accounts.
If you have not arranged an overdraft facility or exceed your authorised limit, you will be charged interest at the unauthorised overdraft rate. This rate may be much higher than the authorised rate. Many graduate accounts now charge an unauthorised overdraft usage fee as well as, or instead of, interest.
You may also be charged a fee for being overdrawn.
Any fee charged would depend on whether the overdraft is authorised or unauthorised.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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