law student funding

After abusing the aforementioned overdraft facility over the last few years it is more than likely your bank is trying to claw it back your under graduate account overdraft with an annual reduction usually £500 each year.

Banks are, unfortunately, not our friends and they don’t really care about us. But obviously we are a useful commodity and as graduates we will on average earn more than our non-university educated friends. So, it is in their interest to keep us. For most people they simply stay with their existing bank after they have graduated, without considering getting a different graduate account – but why?

The Graduate Account

Well... people just do. Often remaining with their existing bank after they have graduated and well into their working life; this is perfect for the banks but not so good for you. They want you to take their graduate account rather than choosing another, possibly better, graduate account.

I did the same for the first ten months after I graduated. Who can really be bothered to change their account, get a new card, and learn a new pin let along the rigmarole involved in the transfer?

Trust me you should do it.

I had an under graduate account with HSBC and when I finished university my overdraft limit was set at £1500, which was as you would expect was maxed out and there or there abouts it remained until HSBC sent me a nicely worded letter informing me that the last £500 of my overdraft would start having interest charged on it... mmm I thought that doesn’t sound good.

One Saturday afternoon I set off to town to pick up a few graduate account booklets and was I pleased with what I found. The best graduate account offer I came across and I can’t promise it will be the best deal for everyone was from Lloyds bank, who were offering a graduate account with £2000 interest free overdraft. Not only was this graduate account overdraft larger than my current overdraft but it is completely interest free!

Before you could say this is going to be a rigmarole I was sitting in front of an employee having my details entered in to the computer for brand new graduate account! Once the credit check was out of the way I walked out of the bank with another stupid smile on my face, a new graduate account and the feeling I had done well. 

Was getting a Graduate Account stress free?

Yes it was actually, they send out my card, my pin, my cheque book, that other book that is a mixture of cheques and giro (whatever they are) and they even transferred over all my direct debits, oh and I didn’t have to speak to HSBC once, Lloyds did everything.

If I have learn anything in the last few year it would be this, everytime you open a bank account, whether that is an under graduate account, or graduate account, you come out smiling like a stamp enthusiast in the post office. (I’m not in to stamps myself you understand)

I’m just not looking forward to the end of my period of interest free grace, but I guess if I look around there will be another bank I can sign my allegiance to and come of out smiling once again. Lyolds might not be the best option for you, but it is worth shopping around and also seeing what your bank can do for you, they are more likely to offer you something to stay that to lose you to a rival. The best information I have found on graduate accounts was the graduate account section on Martins Money Tips which I would recommend anyone to join.

So on that note, I’m going shopping.

Jack

All About Law

05-10-2009