Student account overdrafts

Learn what sort of student overdrafts are offered at each of the high street banks before making your student bank account application...

Student account overdrafts

The absolute beauty of student bank accounts is the interest free overdrafts they offer. Every single high street bank offers a massive overdraft for nothing during your uni years, although the limits do vary across the bank accounts.

The overdraft limit for undergraduates studying for three years tends to be at the £2,000 mark. Barclays, The Co-operative Bank, HSBC, Santander and Smile are all good options in this respect, giving the 2k maximum overdraft as you hit your third year. Halifax stands out however, offering a whopping £3,000 interest-free overdraft from day one, staying at that level for up to six years. That’s the length of your course plus two or three years after you graduate.

Find out more about what the high street student bank accounts offer, below:

Barclays

Overdraft facility: Interest-free overdraft of up to £2,000.

Find out more about the Barclays Student Current Account.

The Co-operative Bank

Overdraft facility: Interest-free overdraft of up to £1,400 in your first year (rising to £2,000 in your third year).

Find out more about the Co-operative Student Current Account.

Halifax

Overdraft facility: Interest-free overdraft of up to £3,000 for up to five years (plus an extra year after you graduate)

Find out more about the Halifax Student Current Account.

HSBC

Overdraft facility: Interest-free overdraft of up to £3,000.

Find out more about the HSBC Student Current Account.

Lloyds

Overdraft facility : Interest-free overdraft of up to £1,500 in your first three years and up to £2,000 in years four five and six. (This is normally divided up between terms, giving you £500 for each).

Find out more about the Lloyds Student Current Account.

Natwest

Overdraft facility: Interest-free overdraft of up to £1,000 in your first year. (This is normally divided up between terms, giving you £500 in your first term, £750 in your second term and £1,000 in your third term).

The overdraft limit has the potential to raise to £1,250 in your second year, £1,500 in your third year and £1,750 in your third, fourth and fifth years.

Find out more about the Natwest Student Current Account.

RBS

Overdraft facility: Interest-free overdraft of up to £1,000 in your first year. (This is normally divided up between terms, giving you £500 in your first term, £750 in your second term and £1,000 in your third term). The overdraft limit has the potential to raise to £1,250 in your second year, £1,500 in your third year, £1,750 in your fourth year and £2,000 in your fifth year.

Find out more about the RBS Student Current Account.

Santander

Overdraft facility: Interest-free overdraft of up to £2,000, depending on your year of study (starts at £1,000)

Find out more about the Santander Student Current Account.

Smile

Overdraft facility: Interest-free overdraft of up to £2,000.

Find out more about the Smile Student Current Account.

So, we’ve already established that Halifax continue to offer 0% interest on your overdraft after you graduate. But what about everyone else? Most banks now offer graduate accounts to ease you into real-world banking with a continued 0% interest on your overdraft once you’ve left uni. These accounts will normally kick in automatically but if you’re unsure, get in touch with your bank directly.

Running into your overdraft with any old current account could end up costing you, so getting a graduate account is a great way to pocket some extra cash. Just be sure not to run into charges for exceeding the agreement on your overdraft at any point. The same applies to your student bank account too.

Find out more about what the high street student bank accounts offer in terms of their overdrafts, below:

Barclays Graduate Additions

Overdraft facility: Interest-free overdraft of up to £3,000

How to apply: If you have completed your full-time higher education, are a permanent UK resident and have a main current account at Barclays, you can apply for the Graduate Additions account once you’ve graduated. If you don’t have an account with Barclays, you must meet that criteria AND be in permanent employment (or have a job offer) to apply.

Find out more about the Barclays Graduate Additions account.

Halifax Graduate Account

Overdraft facility: Interest-free overdraft of up to £3,000.

How to apply: If you already have a student account with Halifax, this will automatically continue for one year after your graduate.

Find out more about the Halifax Student Current Account.

HSBC Graduate Service

Overdraft facility: Up to £1,500 interest free overdraft in your first year and up to £1,000 in your second year after graduation.

Find out more about the HSBC Graduate Service

Lloyds Graduate Account

Overdraft facility: Interest-free overdraft of up to £2,000 in your first year, £1,500 in the second year and £1,000 in the third year after graduation.

How to apply: To apply, you must be a permanent UK resident and have confirmation of your graduation, which would have taken place within the last three years. You must already bank with Lloyds TSB (or transfer your existing account) and pay at least £500 into your account per month.

Find out more about the Lloyds Graduate Account

Natwest Graduate Account

Overdraft facility: Interest-free overdraft of up to £2,000 in your first year, £1,000 in your second year and £500 in your third year after graduation.

How to apply: You can apply for this account if you are a permanent UK resident, have an account with Natwest and have graduated from full-time higher education within the last three years.

Find out more about the Natwest Graduate Account.

RBS Graduate Account

Overdraft facility: Interest-free overdraft of up to £2,000 in your first year, £1,500 in your second year and £1,000 in your third year after graduation.

How to apply: You can apply for this account if you are a permanent UK resident, have an account with RBS and have graduated from full-time higher education within the last three years.

Find out more about the [RBS Graduate Account.

Santander Graduate Account

Overdraft facility: Interest-free overdraft of up to £2,000 in your first year after graduation, decreasing over a period of three years.

How to apply: You can apply for the Santander Graduate Account if you live permanently in the UK and have completed your higher education course.

Find out more about the Santander Graduate Account

The RBS Graduate Account stands out above the others, offering 0% overdraft limits over a period of three years AND giving new customers that chance to earn 2% cashback on card purchases for the first six months for brand new customers. The other high street graduate bank accounts have similarly great deals when it comes to 0% overdrafts. For those in a significant amount of debt once uni is over, the Barclays Graduate Account - featuring a £3,000 overdraft at 0% - may be an option Take note however, that once this year is up, the interest-free tiers do decrease.

If you’re looking to make use of a whacking great overdraft from the day you start uni, until the year after you graduate, then Halifax undoubtedly comes out on top, giving students a £3,000 interest-free overdraft for five years and staying at that level a year after you graduate.

[Image: Dave Dugdale]


 

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