HSBC recently announced plans to scrap its interest-free overdraft facility for graduate accounts, meaning that student account holders could face up to £140 interest charges each year for using their overdrafts.
HSBC has been heavily criticised for seemingly trying to cash in on graduates when they are most financially vulnerable. Following a hugely successful campaign by students on the social networking site Facebook, HSBC has been forced to do a u-turn. HSBC has now agreed to freeze interest on 2007 graduates' accounts up to £1500 and will refund any interest charged in August.
If you have been affected by HSBC's decision and want to switch your graduate account then provided you have run your account sensibly within your agreed overdraft limit there should be no reason why you can't switch to a different graduate account provider.
Given the future earning potential graduates have, you're hot property and Banks should be fighting for you custom - so Moneyfacts.co.uk has come up with five simple steps to switching your graduate account:
1. Read the Moneyfacts.co.ukguides to Graduate Accounts, Graduate Finances and Student Accounts to help you understand how they work and what to look out for.
2. Use Moneyfacts.co.ukbest buys for Graduate accounts and Student accounts to compare the market and find out who's offering the best deal to suit your individual needs.
Here's a quick Graduate account 'snap-shot'of what's available:
Maximum free overdraft
Apply within 3 years of graduation
Year 1 £2000Year 2 £1000Year 3 £500
Apply within 2 years of graduation
Year 1: £1500
Year 2: £1000
Year 1: £2000
Year 2: £1500
Year 3: £1000
- Dial-a-phone £40 cashback offer
- Return European flight voucher
Year 3: £500
-Discounts on holidays, travel, restaurants, DVDs etc
* Terms and conditions apply
3. Pop into your local branch, as they may be able to switch you there and then. Remember to take with you: photo ID, 2 utility bills and 6-months bank statements
4. Sit back and let them take charge of the switching process for you
5. And, don't worry about any charges - switching graduate accounts is usually free!
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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