Graduating this year? Check what happens to your student bank account
If you are a final year undergraduate student, we encourage you to check what will happen to your student bank account after graduation, especially if you use an overdraft.
When you finish your course, your bank may automatically move your student account to a graduate account. This can be helpful, as graduate accounts often continue to offer interest-free overdrafts for a limited time. However, the amount you can borrow interest-free may reduce after graduation, and the terms of your overdraft could change.
This means it is important to plan ahead so you do not get caught out by a lower overdraft limit, interest charges or other changes to your account.
What should you do now?
If you currently have a student bank account, check:
- whether your bank will automatically switch you to a graduate account
- when the switch will happen
- what your new overdraft limit will be
- whether your interest-free overdraft will reduce over time
- what interest or charges could apply if you go over your limit
Graduate accounts are designed to help you reduce and eventually pay off your student overdraft after university. Try to make a realistic plan for paying back what you owe, even if you can only reduce it gradually at first.
You do not have to stay with your current bank. It may be worth shopping around to see whether another graduate account offers a better deal for your circumstances. Save the Student has published a guide to the best graduate bank accounts for 2026, including information about overdraft limits, interest rates and whether you can switch after graduating.
Get support with money worries
If you are worried about your finances, support is available.
You can:
Taking action early can help you avoid unexpected charges and feel more in control of your money after graduation.