Some banks even offer up to £25,000

[dmitrinekol]

1. Graduate loans are different from Student Finance​

   
   It's likely you'll be offered a bank loan as part of your grad package – but think very carefully before grabbing the cash. Some banks even offer up to £25,000 to graduates, which is a lot of cash (and therefore a lot to pay back!).
   Commercial loans work quite differently to Maintenance Loans – for one, you may be expected to start repaying the money almost immediately. Unless you've got a guaranteed income, this could be more stress than it's worth.
   If you're considering a loan because you're already in over your head with debt, get free advice from StepChange Debt Charity first.

In the table below, we go through some of the best graduate bank accounts – but remember to always read the small print for yourself.

Best graduate 0% overdraft accounts​

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ccount	Up to £2,000	N/A	No	More
NatWest Graduate Account	Up to £2,000	39.49% EAR (max £17.25/mth)	No	More
RBS Graduate Account	Up to £2,000	£8 per day (max £80/mth)	No	More
HSBC Graduate Bank Account	Up to £1,500	39.9% (max £20/mth)	Yes	More
Halifax Student Current Account	Up to £1,500	N/A	No	More
Ranked by longest/ largest interest- and fee-free overdraft. Figures and terms subject to change. Please check bank websites for details.

Note that some banks, such as Co-op, have recently removed their graduate accounts from their product ranges. Our table only includes graduate accounts that are available to open (either to continuing customers or those switching) as of July 2020.
You might not necessarily get the full overdraft allowance that’s advertised, as the amount you receive is judged on a case-by-case basis.
The amount that you get interest-free may also drop for each year (specified above) and will be counted from the year you graduate, not from when you open the account.

Graduate bank account reviews​

Barclays Higher Education​

Interest- and fee-free overdraft​

• Year 1: up to £3,000
• Year 2: up to £3,000
• Year 3: up to £3,000

Once again, whether or not you get the maximum overdraft each year will depend on your credit rating.

Unarranged overdraft fees​

Barclays doesn’t offer an unarranged overdraft with its Higher Education account. Should you attempt to make a payment that will take you beyond your arranged overdraft, Barclays will usually refuse to release the money.
On the rare occasion that they’re unable to do this (Barclays gives the example of an offline payment on a flight) and you enter an unarranged overdraft, no additional charges will be applied.

Our review​

Barclay’s massive interest- and fee-free overdraft makes it our top pick. What’s more, you can still switch to this account after graduation, as long as you can prove to Barclays that you graduated within the past three years.
Barclays Higher Education is also one of the few graduate accounts to come with an incentive: cashback offers at over 150 retailers, such as Boots and Expedia.
Visit Barclays »
↑ Comparison table

Nationwide FlexGraduate​

Interest- and fee-free overdraft​

• Year 1: up to £3,000
• Year 2: up to £2,500
• Year 3: up to £1,750

The information on Nationwide’s own website regarding the size of the interest- and fee-free overdraft is a bit confusing. Instead of describing it in terms of the maximum available each year, they say what the overdraft amount will reduce to at the end of each year after you graduate.
The accompanying graph just adds to the confusion, and it’s easy to be tricked into thinking that you’ll only be able to apply for £2,500 in your first year after leaving uni, £1,750 in your second year and £1,000 in your third year.
However, despite their confusing guidance – and what you might read on other websites – we’ve had it confirmed by Nationwide themselves that the figures we quote are correct.
As with all the graduate accounts in this list, the maximum overdraft is by no means a guaranteed offer for all applicants. Whether or not you’ll get it depends on your credit score.

Unarranged overdraft fees​

The FlexGraduate account, as with all Nationwide accounts, doesn’t offer an unarranged overdraft.
However, you won’t be able to take any cash out or buy anything using your card until your balance is back within the agreed overdraft limit.

Our review​

Although you can’t switch to a Nationwide FlexGraduate account after you’ve graduated, unlike with the Barclay’s graduate account, it’s still a very good bank account for grads as it comes with such a sizeable maximum overdraft.
And remember, if you haven’t yet graduated (and are still a student), you can make the switch to Nationwide’s FlexStudent account and get transferred to the FlexGraduate account once you leave uni.
Visit Nationwide »

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