Thursday 6th September 2007
The National Union of Students (NUS) has welcomed the U-turn from HSBC over plans to charge full interest on graduate overdrafts.
According to the NUS, students are currently "more likely to be in debt than ever before" at the end of their degrees.
Vice-president for welfare Ama Uzowuru adds: "Students often struggle in low paid, insecure jobs upon graduation.
"The prospect of having the security of the interest-free graduate service pulled from under their feet is clearly unacceptable."
An online campaign was undertaken by the NUS, with more than 4,000 members joining the Stop the Great HSBC Graduate Rip-off!!! group on social networking website Facebook.
"Like any service-orientated business we are not too big to listen to the needs of our customers," explains HSBC head of product development Andy Ripley.
He asserts that interest will now not be charged on the first £1,500 of 2007 graduates overdrafts, while all fees incurred during August are to be refunded.
The financial services provider recently released the details of its 2007 student current account service, with interest-free overdrafts of £1,000 increasing by £250 in each subsequent year of study.
NatWest also offers up to £2,000 interest-free in the fifth year of study and promises "ongoing support after graduation" - as well as a free five-year young persons railcard when a student current account is arranged.
Royal Bank of Scotland claims that its student account customers can expect 20 per cent off books and 25 per cent off gig tickets, with a maximum interest-free overdraft of £2,500 available.
But Halifax provides the largest interest-free facility with up to £2,750, depending on the length of the course, extended for a year after graduation.
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