Graduate Bank Account

Year 1: 0% EAR³ on the first £3,000, 39.9% EAR (variable) above that, giving a representative rate of 0% APR (variable)⁴. Year 2: 0% EAR on the first £2,000, 39.9% EAR (variable) above that, giving a representative rate of 0% APR (variable). Based on an arranged overdraft of £1,200.

How does our overdraft compare? The representative APR shows the cost of borrowing over a year, so you can use it to compare the cost of our overdraft against other overdrafts and ways of borrowing.

When you apply for this account, you'll have the option to apply for an arranged overdraft.

An arranged overdraft allows you to borrow money (up to an agreed limit) if there's no money left in your account. This can be useful if you're hit with an unexpected bill, for example.

If a payment would take you past your arranged limit (or if you don’t have one), we may let you borrow using an unarranged overdraft. There's a chance that payments you try to make using an unarranged overdraft may be declined. However, we'll always try to allow essential payments if we can. 

You can apply for an arranged overdraft when you open your account, or at any time later. You can ask to increase, remove or reduce your limit at any time in online or mobile banking, by phone or in-branch. Your new limit can't be less than what you owe.

We report account activity, including overdraft usage, to credit reference agencies. An unarranged overdraft lasting more than 30 days could have a negative impact on your credit rating.

Overdrafts are designed for short-term borrowing only, and are subject to status.

If we’ve got your mobile number, we’ll send you an SMS text alert if you’ve gone overdrawn or we know you’re about to. These alerts are designed to help you manage your overdraft usage and avoid being charged interest.

You can opt out of overdraft text alerts by calling us or asking us in-branch – but remember you’ll be opting out for all your current accounts with us. If you opt out or we don’t have an up-to-date number for you, you could end up paying interest you might otherwise have avoided.

In the first year after graduation, you may be eligible for an interest-free overdraft facility up to £3,000, and up to £2,000 in your second year after graduation. In your third year after graduation, we’ll move you to an Advance account or an HSBC Bank Account. At this point, you may be eligible for an arranged overdraft of up to £1,000 interest-free to help make life easier (subject to status and how your account has been used). Any arranged overdraft above these amounts will be charged interest at 39.9% EAR variable.

Representative example (based on an arranged overdraft limit of £1,200): Year 1: 0% EAR³ on the first £3,000, 39.9% EAR (variable) on anything above that, giving a representative annual percentage rate (APR) of 0% APR (variable)⁴. Year 2: 0% EAR on the first £2,000, 39.9% EAR (variable) on anything above that, giving a representative rate of 0% APR (variable).

How does our overdraft compare? The representative APR shows the cost of borrowing over a year, so you can use it to compare the cost of our overdraft against other overdrafts and ways of borrowing.

The monthly cap on unarranged overdraft charges for the Graduate Bank Account is £20. Further details can be found online at our Overdrafts page.

To find out more, visit our Overdrafts page, where you can find out if you’re eligible for an arranged overdraft and use our overdraft cost calculator.