Before you choose a graduate bank account, check any charges that might apply such as overdraft charges.
Use the table below to compare fees, requirements and extras to find the right bank to suit you. If you’re using a tablet or phone, click here to view the table.
Graduate Bank Accounts |
0% Overdraft Terms |
Fees |
Requirements |
Extras |
Source |
| Santander 123 Graduate Account | Year 1-2: Up to £2,000
*An allowance of up to £2,000 applies for 3 years for 123 Graduate Current Accounts opened before 26 June 2017. |
£5 a day (capped at 10 days in each monthly statement period)
Fee for allowing a payment despite lack of funds: £5 per payment Fee for refusing a payment due to lack of funds: £10 per payment Unarranged overdraft usuage fee cap: £50 in each monthly statement period on Unarranged Overdraft Fees only (including fees for allowing and refusing a payment due to lack of funds) |
Swaps automatically on graduation
Must already have a 123 Student or 123 Postgraduate Current Account Must be 19 years old or over, live in the UK for tax purposes Must be able to provide proof of graduation (graduate certificate or confirmation from the university on letter headed paper). You must also have successfully completed a course with a Higher Education Provider of the following type within the last three years. No monthly funding requirement |
You get interest on any amount over £100
£100: 1% AER/Gross £200: 2% £300-£2,000: 3% |
Source 1 |
| HSBC Graduate Account | Year 1: £1,500 Year 2: £1,000Additional arranged overdraft agreed above your interest free entitlement will be charged at 19.9% EAR variable |
No fees for refusing a payment, going less than £10 over overdrawn or over your limit for 1 day during the month
A payment from your account takes you into an unarranged overdraft and you then make another payment from the account which we agree an unarranged overdraft to cover. You have an unarranged overdraft for 2 days in a row during the month: £10 As above but with 9 more payments and have an unarranged overdraft for 10 days in a row during the month: £50 As above but with 21 days and make 12 more payments: £80. This is the maximum they can charge in one month. A payment from your account takes you into an unarranged overdraft for 1 day. However, on 3 more occasions during the month, a payment takes you into an unarranged overdraft. On each of these occasions you have an unarranged overdraft for 3 days in a row. You are in unarranged overdraft for 10 days during the month however you are only charged for 9 days as 1 day is £10 or less: £45 |
You need to be 18 years or older
You must have graduated from university within the last 2 years You need to be able to provide proof of graduation e.g. a graduation certificate Your need to be able to provide us with identification and proof of your address and one month’s bank statements from your current bank If you are resident in the UK, you are happy for us to undertake a credit register searchcredit register search This link will open in a new window (PDF) |
Access to ‘Regular Saver’ | Source 1 |
| Natwest Graduate Account | Year 1: Up to £2,000 Year 2: Up to £1,000 |
Any arranged overdraft limits over the interest-free threshold will incur fees and charges if used (17.81% EAR). If you do not have an arranged overdraft or go over it, you will be charged £8 per day for unarranged overdrafts of more than £10.
Monthly cap is £80 |
Automatically changes to a graduate account Available to individuals aged 18+ who have: Held a Student account Graduated from a full time higher education course at a UK university or college lasting at least 2 years during the past 2 years Completed training as a nurse at a UK university or college during the past 2 years. You must use your Graduate account as your main account by depositing your wages, salary or other regular income into it. We’ll change your Graduate account to a Select account two years after you graduate. We’ll always give you at least 60 days’ notice before we do this. |
TasteCard (2for1 or 50% off in participating restaurants), valid for 2 yrs, not 4 like the student account | Source 1 |
| RBS Graduate Account | Year 1: Up to £2,000 Year 2: Up to £1,000 Year 3: Shifted onto select |
Any arranged overdraft limits over the interest-free threshold will incur fees and charges if used (17.81% EAR). If you do not have an arranged overdraft or go over it, you will be charged £8 per day for unarranged overdrafts of more than £10.
Monthly cap is £80 |
Automatically changes to a graduate account
Available to individuals aged 18+ who have: Held a Student account Graduated from a full time higher education course at a UK university or college lasting at least 2 years during the past 2 years Completed training as a nurse at a UK university or college during the past 2 years. You must use your Graduate account as your main account by depositing your wages, salary or other regular income into it. We’ll change your Graduate account to a Select account two years after you graduate. We’ll always give you at least 60 days’ notice before we do this.Automatically changes to a graduate account |
TasteCard ( 2for1 or 50% off in participating restaurants), valid for 2 yrs, not 4 like the student account | Source 1 |
| Nationwide FlexGraduate | Year 1: Up to £3,000 Year 2: Up to £2,500 Year 3: Up to £1,750 If your course was 2 years long: Year 1: £2,000 Year 2: £1,500 |
If you try to make payments do not have enough money available to use (inc. any arranged overdraft limit), generally these will not be made.
However, there is a small chance that a payment could be made causing you to go into an unarranged overdraft. For example, if a payment into your account is recalled by the bank making it or a cheque paid into your account is returned unpaid. If this happens we will not charge you any fees but you must repay the unarranged overdraft straightaway. We may reject any further payment requests until you do this. |
Account changes automatically
Depending on the length of your course of study, you can have a FlexGraduate account for either two or three years from the date that you moved from your FlexStudent account to your FlexGraduate account |
Source 1
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| Barclays Higher Education | Year 1: Up to £3,000 Year 2: Up to £2,000 Year 3: Up to £1,000 |
Going overdrawn leads to daily fees
Up to £1,000: No fee £1,000-£2,000: 50p per day Unpaid transactions (standing order/direct debit, cheque) £8 per day, capped at 4 charging per month £8 per month control feature |
Over 18
Live in the UK Completed full-time education in the last 3 years Automatic upgrade if on student additions account |
Cashback from 150 participating retailers | Source 1
|
| Lloyds Graduate Account | Year 1: Up to £2,000 Year 2: Up to £1,500 Year 3: Up to £1,000 |
If you go over your limit: 1p for every full £6 you borrow each day up to £1,250
1p for every further full £7 you borrow each day between £1,250 and £2,500 In special cases where a higher overdraft is arranged, then a third tier may be charged: 1p for every further full £8 you borrow each day over £2,500 All charged at the end of the day, not month. |
The graduate account is not available to new or existing customers, only those who held a Lloyds student account. You can apply for an overdraft even if you didn’t have one on your Lloyds student account
Our grace period means that you have until 2.30pm to pay in enough to ensure the payment goes out, but you have until midnight to avoid a daily overdraft fee |
Up to 15% cashback at participating retailers | Source 1
|
| Halifax Student Current Account | Keep your student account for 1 extra year post graduation. (subject to status)
Up to £1,500 |
The daily arranged overdraft fee is 1p for every full £7 you borrow between £1,250 and £2,500, and then a further 1p for every full £8 you borrow over £2,500.
If you miss a payment or go over your limit, we will not charge any additional fees on top of the daily arranged overdraft fee. If you reach your agreed overdraft limit you may not be able to make any more payments, and you may be charged by the intended recipient |
Extension of the Halifax student account | Credit interest on any credit balance 0.10% AER (0.10% gross) variable. Interest is paid monthly | Source 1
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| TSB Graduate Account | Year 1: Up to £2,010 Year 2: Up to £1,510 Year 3: Up to £1,010 |
£6 monthly overdraft usage fee
Under £10: no charge £10-£25: £5 a day Maximum 8 per monthly billing period Returned Item Fee: £10 If you don’t have enough money in your account to make a payment and we decline your request for an unarranged overdraft, you will not be able to make that payment. Maximum of 3 per day Max £80 per month Interest on additional amount: 1.30% per month 16.77% EAR |
Must be 18 or over
Must have been a UK resident for at least three years Must have graduated with a degree or diploma from a UK university or college within the last three years Your account must be in your own name as an individual (no joint graduate accounts) |
Can apply for a graduate loan of between £1,000 to £10,000 over 1 to 5 years (subject to application and approval – rates may vary depending on individual circumstances). | Source 1
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Source: Information collated from bank websites by HelloGrads.com, correct on 8th August 2019
Despite the lack of juicy perks served with a student account, a graduate account is a great tool for anyone with a large overdraft to pay off after leaving university.
Most banks cushion the blow by reducing the free overdraft limit annually, letting you pay what you owe back over two or three years (but note that Halifax only gives you one year). Standard current accounts, by contrast, are not so generous. Most banks will automatically switch you from a student to a graduate account but, if you never needed to use your free student overdraft, then don’t just settle for a graduate account.
Speak to your bank and see if your current account might be a better option. That’s because only two graduate accounts – Santander and Halifax – offer any interest on balances in credit. If you’re about to head off to uni, it’s well worth checking now what happens to your account after graduation. Very few people think that far ahead but, trust me, you’ll be glad you did!
