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Graduate bank accounts

Graduate bank accounts

Category: Students

Updated: 12/08/2016
First Published: 11/08/2016

Where do I get a graduate bank account?

Most major banks offer graduate bank accounts, together with other financial products and services specifically tailored for graduates.

  • These accounts can help you to manage your money and student debt effectively.
  • You have to apply for these accounts within so many years of graduating.
  • Graduate accounts offer a range of different facilities, such as preferential overdraft and loan rates, and commission-free currency and travellers' cheques.
  • Most accounts also offer a Graduate Manager who will help you to sort your finances and offer financial advice.

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.

  • These accounts can often be operated by various means including online, in branch, by telephone, by post, or smartphone app.
  • The type of access available can be particularly important if your bank doesn't have a branch close to you or if you don't have the time to visit one.

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.

What Next?

Find the best bank account for you with our graduate money guide

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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