The Student Room Group

Natwest Graduate Account - someone explain to me

So I got an email a few days ago stating that from the 9th of September, my student account with Natwest will be upgraded to a graduate account, and in the first year of graduating I get a £2000 interest free overdraft, then £1000 in the second year.

I've actually maxed out my student overdraft (to £1500), so does this basically mean that the overdraft I have already gets bigger, and the limit is effectively extended to £4500?

Or is there terms and conditions? Like, I'm only entitled to it if I haven't maxed my overdraft out, and if I'm employed?

Obviously I could do with a bit of money to get me by until I find a job, and until my first payday, but this sounds too good to be true, that I'm just being given £3000 without interest when I'm already in a lot of debt to Natwest.
Reply 1
Avatar for WVL
WVL
Your existing £1,500 overdraft facility will increase to £2,000 for 12 months.

That £2,000 facility will then reduce to £1,000 for a further 12 months.

That £1,000 facility will then either be removed, or revert to bearing interest. Usually at this point your "graduate" account will be converted to the bank's standard current account.


It may be that your bank will agree to extend a higher limit during either of those 2 years (or afterwards), however only the amount they have stated will be free of interest.

So, if you have maxed out your £1,500, you will have access to a further £500 in the short term. But if you do max out that £2,000 facility you will be expected to repay half of it in 12 months time, or begin to pay interest on it.

It's worth always remembering, however, that all overdraft facilities are repayable on demand - so be careful! :smile:
A perfect answer!
Sorry but that's incorrect.

Their overdraft will not automatically increase to £2000, it will stay at £1500 unless they ask Natwest to increase it.

If they keep it at £1500 the overdraft will remain interest free for 12 months and then after a year only the first £1000 of the overdraft will be interest free and anything above that limit will have interest applied.

At the end of the 2 years of the graduate account the overdraft will not be removed it will just become a standard current account and interest will be charged on any overdraft amount.

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you