Graduate Bank Accounts

Once you graduate, your student account may be changed to a graduate account and your interest-free overdraft allowance gradually reduced. It is important to be proactive and ensure that your bank is still offering you the best deal for your circumstances. If not, you may wish to consider changing your account. There are many online comparison tools that allow you to check the benefits of different accounts.

If you have managed to stay out of your overdraft and will be in credit when you start your graduate job it is better to look for an account that offers perks such as cashback or travel insurance. See Money Saving Expert and Save the Student for their guides to the best graduate accounts.

Budgeting

Now that you’re leaving university your budget will inevitably change as you start earning a regular income and your living costs will likely change, so it’s a good time to review your budget to make sure you are covering all your essential costs. You may find that you have enough money to start saving some for a rainy day or a big purchase, for example, a car. Have a look at our Budgeting page where there are lots of free tools that are still relevant even when you’re not a student!

Repaying your student loan

You will start repaying your student loan in the April after you leave or complete your course, but only if you are earning over the repayment threshold. The repayment threshold will vary depending on when you started your course, and which repayment plan you are on. You can find out which repayment plan you are on and what your repayment threshold is on the gov.uk website.

Most of the time, if you are an employee in the UK your employer will deduct your loan repayments from your salary, so you won’t have to set up any repayments. However, if you are self-employed or work outside the UK for more than 3 months you will have to make payments yourself either through your online account or by International Bank Transfer (IBAN). You can also use your online account to keep track of your balance and make any extra repayments, should you wish.

Pensions

Getting a pension may seem unnecessary when you get your first graduate job when you are not going to be retiring for another 47 years, but it's never too early to start saving for retirement! The good thing about a pension is the money you pay in is tax-free and all employers have to contribute to their employees' pensions by law, so essentially you are getting a pay rise that you are saving for the future. Pensions can seem a bit confusing but Money Saving Expert have a really good pension guideLink opens in a new window to get you started.

Leaving your student house

Before leaving your student house, you should ensure that you have informed your energy, water, and telephone suppliers that you will be leaving the property and arrange for final meter readings and bills. This is particularly important to avoid being held responsible for charges that are not yours. You should also notify companies of your change of address, especially banks and other financial organisations, to make sure you receive any correspondence and minimise the risk of identity fraud.

Once you have cancelled your accounts with companies which you no longer require, cancel any direct debits or standing orders you have set up.

Take every possible step to ensure that your deposit is returned. Make sure the property is left clean and tidy and you are up to date with your bills. If you are experiencing problems with the return of your deposit, contact the Student Advice Centre in the Students' Union.