The best UK graduate current accounts 2019/20

Current accounts for graduates offer everything from free overdrafts to cashback.

It won’t just be your parents, grannies and friends celebrating your graduation; your bank may mark the occasion by automatically switching you over to their special graduate account.

Unfortunately, loyalty doesn’t always pay when it comes to banking, so it’s important to have a look around to find the best deal for you.

And don’t worry if it’s been a little while since you sported your mortarboard; you can apply for some of these accounts for up to three years after you’ve graduated.

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Keep the overdraft!

First, there’s one important question to ask yourself: how far am I into my overdraft? From here, you can decide which account will best suit your needs.

Some graduate accounts offer free overdrafts of up to £3,000. These can be useful if you partied a bit too hard during your studies.

Carrying on with an interest-free overdraft means that everything you pay goes towards getting you out of the red.

At the moment there are no guaranteed overdraft limits, just ‘up to’ amounts, so your limit will depend on your credit rating.

It’s not a huge barrier if you’ve got a good record of paying rent and other regular outgoings like mobile phone bills.

So, if your financial history is in fairly decent shape, you should get the maximum overdraft allowance.

Find out more about building your credit rating - and how paying rent can help

Do you have a job?

If you're in full-time work, and don't need a huge overdraft, then you may just want to go for a regular current account.

You could get hundreds of pounds in switching bonuses, in-credit interest and other benefits not available to graduate accounts.

There are also standard bank accounts with interest-free overdrafts.

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Extending the student account

Some graduate accounts are only available to customers of their student bank accounts.

In most cases, if you have a student account with these providers you'll be automatically moved onto the graduate account.

This table is ranked by the size of interest-free overdraft available.

Account	Maximum interest-free overdraft limits after graduating	Authorised overdraft charges*	Unauthorised overdraft charges	Incentives/Perks
Nationwide FlexGraduate	Years 1/2/3: Up to £2,500 / £1,750 / £1,000	£0 (but you may not be able to withdraw more)	£0 (but you won't be able to withdraw more)	N/A
Santander 123 Graduate Account	Years 1/2: Up to £2,000	£0 (but you may not be able to withdraw more)	£5 a day (capped at 10 days each month)	In-credit interest of up to 3% between £300-£2,000
Lloyds/Bank of Scotland Graduate Account	Years 1/2/3: Up to £2,000 / £1,500 / £1,000	1p daily fee for every full £6/£7/£8 borrowed (depends on how much you exceed fee-free limit)	1p daily fee for every full £6/£7/£8 borrowed (depends on how much you exceed fee-free limit)	Up to 15% cashback with certain retailers / automatic round-up to help with saving / It’s On Us scheme
RBS/NatWest Graduate Account	Years 1/2: Up to £2,000/ £1,000	17.81% EAR (NatWest),9.9% EAR (RBS)	£8/day (max of £72 per charging period)	Tastecard/coach card remains valid for another two years

*if you borrow over the interest-free amount

Graduate accounts you can switch to

For those who want to switch, it’s best to check your eligibility for the account that you’re interested in first.

To qualify, you need to be over 18 and able to present a copy of your certificate. Some also require you to either have a job or a secure job offer to open the account.

If you want a dedicated graduate account, these are the accounts you need to consider.

Account	Maximum interest-free overdraft limits after graduating	Authorised overdraft charges*	Unauthorised overdraft charges	Incentives
Barclays Higher Education Account	Years 1/2/3: Up to £3,000 / £2,000 / £1,000	Overdrawn by £1,000 - £2,000: 50p a day. Over £2,000: £1 a day	Overdrawn by £1,000 - £2,000: 50p a day. Over £2,000: £1 a day	Access to Barclays Blue Rewards
TSB Graduate Account	Years 1/2/3: Up to £2,010 / £1,510 / £1,010	16.7% EAR plus £6 monthly fee	16.7% EAR plus £6 monthly fee	Automatic spending round up to help saving
HSBC Graduate Account	Years 1/2: £1,500 / £1,000	19.9% EAR	£5 a day	Access to regular savings account with 5% interest

*if you borrow over the interest-free amount

As you can see, there’s a real mishmash of perks on offer, whether you're after an extended overdraft, credit or extras.

But whatever you go for, remember that if you need an overdraft extension it’s always better to get an approval in advance.

Compare current accounts with higher interest rates

This article is regularly updated with the latest accounts

More on student finance:

New Postgraduate Loans: What you need to know

The best student bank accounts

Money saving tips for students

How to find student bursaries, grants, and scholarships