Graduates urged to shop around for best deals - Savings - News - Moneyfacts

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Graduates urged to shop around for best deals

Graduates urged to shop around for best deals

Category: Savings

Updated: 04/08/2009
First Published: 17/07/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Against a backdrop of graduation ceremonies taking place up and down the country, students have been urged to get their finances in order as soon as possible.

The advice comes as graduates enter a highly competitive and contracting job market, with many schemes for university leavers being cut back or disappearing completely.

"After years of saving, it is unlikely that sorting out their finances is the first thing on graduates' minds, but with many leaving university owing a five figure sum, finding the best graduate account for their circumstances could save them money," said Louis Kaszczak, head of Moneyfacts.co.uk.

A great many graduates are likely to stick with the provider which they banked with during their studies; however, terms of graduate accounts vary significantly, so it is worth shopping around for the best deal.

The size of interest free overdrafts offered in the first year range from £1,000 to £3,000, while additional borrowing is typically charged at between 9.9 per cent and 19.9 per cent AER.

Paying off high interest debt, such as credit card borrowing, should take priority as the rates charged on student loans are much lower.

"Many discount the Barclays Bank Graduate Additions account because of the £5 per month fee, but with an additional £1,000 interest-free overdraft in the first year compared to other non fee paying accounts, it is worth considering," commented Mr. Kaszczak.

"Graduates are key targets for banks, as many will go on to well paid jobs and will likely buy other financial products such as mortgages from them in the future. If you do start struggling with debt, don't bury your head in the sand. Instead, head into your local branch where advisers will help you get your finances in order."

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 Any products featured may be withdrawn by their provider or changed at any time.

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