Bank Account Freebies

Incentives for opening a student bank account can vary, however, it must always be remembered that the decision to open a bank account should not be based solely on what incentives/freebies are in place.

• Barclays offers an interest free overdraft for up to three years after graduation for any amount up to £3,000. Existing account holders will however need to switch their student accounts to a graduate one.
• Halifax provides a one-year interest free overdraft for graduates.
• HSBC has a weaning for its graduates. Once you have graduated, your account is automatically switched to a graduate account. Your interest free overdraft facility then last for a further three years: £1,500 for the first year, £1,000 for the second year and £500 for the third year.
• Lloyds TSB has a similar approach as HSBC. Up to £2,000 interest free for the first year, £1,500 for the second and £1,000 for the third.
• NatWest offers a similar method too. Up to £2,000 interest free for the first year after graduation, £1,000 for the second and £500 for the third.

It is so important to look at the bigger picture. A bank will sometimes offer gimmicks or larger overdrafts because they are lacking in other areas such as flexibility or support.

You might also want to consider if there is a branch near campus and non-charging cash points. Weigh up the pros and cons of each account and look to the future – there is no point having a large overdraft limit if you have to pay if off quickly after graduation.