Graduate Bank Accounts + Overdrafts

sid

sid

sid

Soldato
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Just got a letter in from HSBC that my student account finishes next month and after which I my account converts to a overdraft.

They say I'm still entitled to an overdraft of upto a £1000 but that there may be charges levied per transaction or something along those lines?? I don't actually understand what they are saying as it is very confusing. Anybody know if i'm allowed to continue to use the OD facility or are the good days over??

sid
 
Basically you have lost the interest/charge free part of the overdraft, you now just have a normal overdraft (quite a large one) I would make sure you aren't in the negative and close the account because you are flagged as a target for new credit now you are a graduate.
 
It says that the first 1.5k is interest free till 2010 but after that theres a 20% surcharge.

So does it charge per transaaction?

sid
 
HIGH FIVE!

I got that letter too :(

Says my postgrad account stops on 15th July, and anything overdrawn after that is charged at a frankly ridiculous 19.9%APR!
So I have exactly a month to come up with £1800 or get stupid ammounts of interest slapped on me.

They also said that I could be charged interest at a flat rate fee, which , seeing as I have been paying them £5 per month anyway, I want to know eactly what I have been paying them for.

Thankfully, I'm in the position to "Daaaaaaaaaaad... can I borrow some money please?", get it all in one lump sum, and then pay him back over the year at £50 a week or so.

Still havent made that phone call yet :(
 
I've also received the letter mentioned above but don't actually graduate till 2010 (went on placement this year). I'm pretty sure i told them my course would be for 4 years when i signed up for the account but oh well, guess i'm off to the bank!
 
[TW]Fox;14287510 said:
Guys read the letter again it quite clearly states its interest free for at least another year.
Click to expand...

It does indeed but it also mentions possible fees but never really makes it clear or what the charges are

sid
 
I remember when I graduated a friend of mine was with HSBC and they just withdrew his overdraft facility completely a month after he graduated and demanded he paid it all back straight away!

Personally I was with Natwest and never had a overdraft when I was a student.
 
It is quite odd, i am in the first year of my student account been converted into a graduate account and ive been getting really small "overdraft" charges, like £4 etc with Lloyds.

I asked them about it today and the charges were apparently for the last £500 part of my overdraft which ive been using because i used all the money out of the student account to fund an isa.

Which still makes no sense to me... £4 a month for having £500 of overdraft ?
 
I got that letter too. you will have £1,500 intrest free for a year, £1,000 next year and then a regular OD facility from then on. Anything over the above amounts will be charged an extorsionate 20%.

I think im right in saying they calculate the interest at the end of each month
 
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