Best graduate bank accounts
Repay overdraft debt gradually without paying interest
If you've graduated recently, don't just stick with your student account – some banks let you switch to their graduate account and get large 0% overdrafts for up to three years, even if you didn't have their student account. So if you've an overdraft to repay, see if you can switch to a new account and avoid being hit with ghastly 40% interest.
First, a quick overview of graduate bank accounts...
After finishing university, many students have large overdrafts they need to repay – and if they can't do it quickly, they'll be hit with hugely expensive 40% interest.
That's where graduate accounts come in – they offer 0% overdrafts for typically three more years after your course ends, with limits that decrease each year, so you can repay outstanding overdraft debt gradually over a longer period, without paying interest.
Most banks only let you open their graduate account if you had their student account. But there are three banks that do allow you to switch – so first check what your existing bank will offer you, then check the table below to see if any can beat it.
Go for a 0% overdraft large enough to cover your existing debt. Make sure you can realistically repay your debt IN FULL by the end of the 0%. See help to choose.
Repay enough of your overdraft each year before the limit falls. The aim is to repay your debt quickly enough so that when the limit falls each year, you're not caught out with hefty 40% interest. See how to plan and budget.
You'll need to prove you graduated, usually within the last two or three years. Often you'll need to provide a degree certificate. Full info in how to open.
After three years, you'll be switched to the bank's standard fee-free account. These tend to be pretty naff with few perks or rewards. So, when the bank tells you your graduate account's ending, check our Best current accounts guide.
Graduate account | 0% overdraft | How to open |
|---|---|---|
Year 1: Up to £3,000 | In branch, within two years of graduating. | |
Years 1 to 3: Up to £2,000 | Online or in branch, within three years of graduating. | |
Years 1 to 3: Up to £1,500 | In branch, within three years of graduating. |
(1) In your third year after graduation, you'll be moved to an HSBC Bank Account and you may be eligible for an arranged overdraft of up to £1,000 interest-free.
What are graduate bank accounts?
Graduate accounts are essentially student accounts that work in reverse. They offer 0% overdrafts for up to three more years, with limits that decrease each year, so you can repay outstanding overdraft debt gradually over a longer period, without paying interest.
Don't have any overdraft debt? Don't go for a graduate account, as the 0% overdraft isn't important for you. Instead, go for a top current account that offers perks such as free cash for switching or cashback on spending. See our top reward bank accounts explainer below.
How to choose – go for the biggest and longest 0% overdraft.
Most banks only let you open their graduate account if you had their student account, but there are three banks that do allow you to switch – so first check what your existing bank will offer you, then check if any of the top graduate accounts below can beat it.
The aim is to go for a 0% overdraft large enough to cover your existing debt, for long enough for you to realistically repay it. But the interest-free overdraft limits are ‘up to’ – which means how much you get depends on your credit file and you may not get the maximum amount when you apply. Do factor this in to your decision making.
Never go over your overdraft limit. If you try and spend beyond your overdraft limit, banks will typically refuse the transaction, and it can damage your credit file. This will make it more difficult to borrow in the future.
If you're struggling, first talk to your bank to see if it can help – for example, by extending your overdraft limit.
Repay enough of your overdraft each year before the limit falls.
Remember, the aim is to repay your debt quickly enough so that when the limit falls each year, you're not caught out with hefty 40% interest. Here's an example to help explain:
Let's say you've a £3,000 overdraft debt to repay after finishing university. The HSBC graduate account offers 0% overdraft limits of up to £3,000 in year one, up to £2,000 in year two and up to £1,000 in year three. Let's assume you're accepted for the maximum amounts each year, so your whole overdraft is covered.
You'd need to repay £1,000 each year to avoid paying any interest. This is a lot, so it can be helpful to look at it on a monthly basis. £1,000 divided by 12 is about £83 – so to be safe, budget to pay back at least £85 a month for the next three years. Do this and at the end of the three years you'll have fully repaid your debt and paid no interest!
If you're struggling, speak to you bank to discuss support and repayment options – it may consider an extension of the 0% interest period or limit. Full help in our Debt help guide.
How to open a graduate account – what you'll need
As with all bank accounts, you'll need proof of identity and address. This can include your passport, birth certificate or UK driving licence, though some banks also accept utility bills, bank statements and GP letters.
You'll also need to prove you graduated – usually within the last two years. Most banks will ask for your degree certificate or a letter from your university.
You'll be credit-checked when you apply. And when you ask for overdraft limit increases. But as a student, it's likely you'll have very little credit history. While not usually an issue for most, it can occasionally leave some rejected. Read our Build your credit history and Credit scoring guides for help.
Best graduate bank accounts for 2026/27
Not all banks offer graduate accounts, and most that do don't let you switch to it unless you had its student account. But there are three that do, which are in the table below. First check what your existing bank will offer you, then check below to see if any can beat it.
Max 0% overdraft in year one | £3,000 | £2,000 | £1,500 |
Max 0% overdraft in year two | £2,000 | £2,000 | £1,500 |
Max 0% overdraft in year three | £1,000 | £2,000 | £1,500 |
Overdraft interest outside 0% | 39.9% | 39.9% | 35% |
How to apply | In branch | Online or in branch | In branch |
How long after graduating can you apply? | Up to two years | Up to three years | Up to three years |
Don’t need a 0% overdraft? Use it to make free cash instead. Stoozing is the art of creating (or using) an unneeded debt to make money. So, if you don’t need your 0% overdraft, you can instead put the cash in a top savings account – so you’re earning interest on the money the bank has lent you for free.
Warning. Stoozing requires discipline – it’s ONLY for the financially savvy. Read full info and warnings in our Stoozing guide first.
Switch to a top reward bank account when you've cleared your overdraft – for free cash or perks
Typically, after two or three years of holding a graduate account, you'll be transferred to the bank's standard fee-free bank account. These don't usually come with any perks or rewards, so don't just stick with it.
Instead, when your graduate account's ending, switch to a top current account that offer perks such as free cash, ongoing cashback and even 0% overdrafts (useful if you've not managed to fully repay your debt). Some accounts have minimum pay-in amounts or other eligibility requirements, and you'll need an adequate credit rating to apply.
The overdrafts on these accounts are often much smaller. So only choose one of these if you're unlikely to need an overdraft.
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