If you're a recent graduate you may not realise it but your custom is something banks value
above almost everyone else's. However alarming the state of your student
debt ravaged finances may be you should be encouraged by the fact that at
this early stage in your banking life all the major banks will
be particularly keen to get you on board.
The reason is fairly obvious - more often than not, young individuals who open an account with
a bank remain loyal for a large number of years. Banks can typically rely
on the fact that their customers, whether through laziness or apathy, are
unlikely to shop around for alternatives. It's a strange form of brand
loyalty that often means banks can get away with offering non-competitive
financial products to existing customers who will often buy into them
without even checking out the competition.
The good news is that with the potential of a lifetime of lucrative custom at stake, the major
banks are generally prepared to attract young account-holders with student
and graduate accounts that offer substantially better terms than a regular
bank account. Graduates should seize the moment and review their options -
don't fall into the trap of sticking with your current bank for
convenience sake, the fact is there are loads of decent graduate accounts
out there so you may as well play the field.
What you should be seeking ahead of everything else is an account with a high interest-free overdraft.
By going for a competitive graduate account that maintains a good
interest free overdraft for the full duration,
you'll potentially be saving hundreds of dollars at the same time as giving
yourself an invaluable opportunity to pay off debts and manage loans.
The one thing to remember however is not to fall into the trap of staying with
the same bank after your graduate account expires. It really is worth the
small effort of constantly reassessing your account, comparing your deal
with other options on the market (There are several comparison sites out
there that have comparison tables for everything from
loans to credit cards) and not being afraid to change. There really is no
reason anyone should feel duty bound to stay loyal to their bank,
ultimately it's in your interests to find the best deal for you.