Student bank accounts Graduate accounts

You don't have to stick with the same bank after you graduate from uni

Graduate accounts with interest-free overdrafts

Depending on your bank, you'll be able to retain an interest-free overdraft for at least a year after graduating before you have to start paying interest. However, with graduate unemployment at its highest level since the mid-90s, the longer you're able to keep hold of it, the better.

Six of the accounts in our table (below) allow you to keep your interest-free overdraft for up to three years after you graduate, reducing it in tiered stages. This could prove valuable if you decide to go travelling or are unable to find work right away.

Switch banks when you graduate

It’s important to remember that you don't have to stick with the same bank when you graduate. Even with debts, students are an attractive long-term prospect due to their heavily increased earning potential. 

So, if you picked First Trust Bank for its £1,850 undergraduate overdraft facility rather than NatWest, which only offers £1,000, you should consider switching when you graduate. NatWest offers a free £2,000 overdraft at this point, compared with First Trust Bank’s £1,000 overdraft.

Graduate accounts 

Our table shows the graduate accounts available ranked in order of the maximum free overdraft they allow. 

Provider	Max free overdraft year onea	Max free overdraft year threea	Additional authorised overdraft rate	Access Access help	Customer score Customer score help	Find out more
Barclays	£3,000	£1,000	14.90%	Branch Internet Telephone	52%
Lloyds TSB	£3,000	£1,000	16.80%	Branch Internet Postal Telephone	55%
NatWest	£2,000	£500	17.81%	Branch Internet Postal Telephone	55%
Royal Bank of Scotland	£2,000	£1,000	9.90%	Branch Internet Postal Telephone	54%
Santander	£2,000	£500	0.00%	Branch Internet Postal Telephone	39%
HSBC	£1,500	n/a	19.90%	Branch Internet Postal Telephone	57%
Ulster Bank	£1,500	n/a	Negotiable	Branch Internet Telephone	n/a
Bank of Ireland	£1,000	n/a	0.00%	Branch Internet Telephone	n/a
First Trust Bank	£1,000	£1,000	0.00%	Branch Internet Telephone	n/a

Help

Access

Key:

• Branch
• Internet
• Postal
• Telephone

Back to access in money table

Customer score

Which? member score based on customer satisfaction and likelihood of recommending company to friend/family member.

Back to customer score in money table

Graduate loans

Banks offer these for three to five years. They are usually for between £5,000 and £15,000 and you repay them at an interest rate of between 7.9% and 11.9%.This works out less expensive than exceeding your overdraft limit, but is not fantastically cheap. Some careers, such as the law, qualify for longer loans.

Barclays, the Co-operative Bank and the Royal Bank of Scotland offer career development loans, where interest is paid by the government during the period of study.

More on this...

• Moving to a new place? Take a look at our guide to getting discounts on products
• You might be interested in our expert guide to renting a home
• Or take a look at our guide to finding the best cash isa