We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Our phone number is 0 8 0 0 1 3 8 1 1 1 1. Freephone (including all mobiles).
mum at the table with bills

Worried about money?

We can help. Use our free online debt advice tool.

Get help now

Overdraft debt

Graduate account overdrafts - what you need to know

Students can sometimes get bank accounts with free overdrafts. They start charging fees when you graduate and are only interest-free for the first two years.

What happens to my overdraft when I leave university?

Student accounts often become graduate accounts automatically.

The overdraft on these accounts is fixed at 0% interest for the first two years. Read our guide to understanding interest and charges.

The overdraft limit goes down every 12 months.

You do not need to stay with the same bank when you finish your course.

You may be able to get a better account with another provider, like:


  • One with a longer interest-free overdraft period, or
  • One that comes with free gifts

Some providers will even let you switch if you have a large overdraft debt outstanding. But there may be a charge to do this.

Money worries?

Find out how we can help you.

Get help now

How can I deal with graduate overdraft debt?

There are a few important steps to start dealing with overdraft debt.

1. Gather details of your overdraft and debt

Try to find out:


  • How much overdraft debt you have left to pay
  • How long your bank will let you borrow without paying interest (called 0% interest)
  • When the limit on borrowing without paying interest will be reduced, and to how much

2. Set a repayment target

Set your target based on the figures you gathered.

This helps keep your overdraft borrowing within the limit before you pay interest.

3. Make a budget

Making a budget is a key part of managing your debt.

It helps you understand:


  • The difference between your income and spending
  • Where you could save money
  • How you could use overdraft less

What if I am struggling to manage my overdraft?

Use our free online debt advice tool if you are struggling with debts after leaving university.

We can help you take control of your finances.

"They were so kind, they listened patiently and helped me through the process" Alison, Kent