Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Top 10 Personal Finance Tips for Graduates by

Personal_Finance / UK Banking Jun 15, 2007 - 11:18 AM GMT

By: MoneyFacts


Andrew Hagger, Head of Press at – the money search engine comments:“On leaving university, searching for the best current account provider may be the last thing on many graduates’ minds. But by taking the time to shop around, they could find an account that suits their circumstances and also save some money into the bargain.

“There are only six UK providers of graduate finance, so choice is limited to the major players.

“So far Abbey, Barclays, Lloyds TSB, NatWest and Royal Bank of Scotland have confirmed their 2007/08 graduate deals, but we expect the others to announce by the end of June/first week of July.

“Graduates will often remain loyal to their student account provider. However, as long as you have proof of qualification and have managed your account within your agreed overdraft limit(s), then there is no reason why you shouldn't switch to a better deal.

“Debt is likely to be spread across Student Loans Company, bank overdraft, credit card and parents

Top 10 tips for graduates

Sort out a monthly budget
“Once you graduate and start work, it’s a sensible idea to sit down and work out a monthly budget. It's probably the first time that you will have had a decent regular income, but at the same time you may have had to move to a new area for your new job and have additional travel and living costs. By actually working out how much money is coming in and how much is going out, you'll know how much is left over to put towards repaying your debts.

Work out a debt repayment plan
“Make a list of exactly how much you owe and plan to start reducing your debt. Most people will leave university owing a five figure sum, but be sensible about it. It doesn't all have to be paid off within 12 months, but then again you can’t ignore it and you should look to start making repayments as soon as you can afford to.

Don't rush to pay off your student loans
“Whilst these may well form the largest part of your debt, the interest rate is low (in line with inflation), and the whole idea behind these products is that you make repayments from your salary over your working life.

Check out how much you can borrow interest free on a graduate overdraft
“The NatWest & Abbey Graduate packages both offer up to £2K free in year 1, then £1K in year 2 and down to £500 in year 3. We're still awaiting details of packages from the other big banks, but last year Barclays Graduate Additions offered the highest interest free limit in year 1 at £3K but this account does charge you a £5 per month fee. However the extra £1K interest free overdraft is worth £100 (at a typical rate of 10%) so paying £60 in fees over a year for benefits including mobile phone insurance is still worthwhile.

Check out the authorised overdraft interest rate
“Subject to credit approval, graduates may maintain their year one limit, but pay interest on the difference between this and their relevant year’s limit. With rates ranging from 9.9% (Barclays & Abbey) to 18.3% HSBC, choosing carefully could make quite a difference financially.”

Keep an eye on the unauthorised overdraft fees and interest rate
“Graduates’ incomes and expenditures can initially be rather erratic, which may on occasion result in unauthorised borrowing. This can be an expensive, and should be avoided if at all possible. For example Lloyds TSB charges interest of 29.8%, and apply fees of £30 per day (max £90 pm). A better deal can be found at HSBC, charging its standard interest rate of 18.6% and overdraft arrangement fee of £25.”

Don't be fooled by incentives
“Unlike the student account market, where incentives are the often the main focus point for providers marketing, only Lloyds TSB, HSBC and Royal Bank of Scotland offer incentives or benefits to graduates. But don’t be lured simply by the incentives on offer, as charges may soon eat away any initial gain. And remember they only have any value if you are actually going to use them!”

Credit Cards
“Always look to repay your most expensive debt first. Once you have found work, give yourself six months (to start to build a decent credit rating) and then apply for a 0% credit card to switch some of your student debt to. The Virgin Money MasterCard is currently offering 0% balance transfers for 13 months, subject to a one off 2.99% transfer fee.

Savings and Pensions
“You can't really start any serious saving until you get your debts paid off, but probably not a bad idea to set up a regular savings account to salt away money for annual bills such as car tax and MOT and Christmas - this will help you budget - a bit boring I know, but better than having to shell out a few hundred pounds from one month’s pay packet.

It's never to early to start saving for your retirement - check out what your employer is offering. If you are very fortunate you will be part of a final salary scheme, but more likely it will be a voluntary contribution scheme where your employer will match your contribution. Retirement may seem a long way off, but better to start early even if it is only £50 or so each month. It is tax efficient and will also save you having to contribute a fortune each month when trying to play catch up in later life.

“This is unlikely to be affordable unless you have managed to secure a job with an excellent salary, so you will probably be renting either alone or with friends. If you are looking for a mortgage, Co-operative Bank, HSBC and Scottish Widows offer specific criteria and mortgage products for graduates. The other option is buying a property with a group of friends - a great way to get on the property ladder, but can be complicated if someone wants to move on or you fall out. You need to get an agreement drawn up by a solicitor to cover such eventualities.”

For the latest deals of Graduate Bank account deals click here: - The Money Search Engine

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in