Grad all over! (Lloyds TSB)

Member Name: benniash

Product:	Lloyds TSB
Date:	27/01/04 (260 review reads)
Rating:

Advantages: Great offers, Good service

Disadvantages: More credit, more debt, You must fulfil the criteria

I have always had several bank accounts to help me keep track of direct debits and the like. Having opened a bank account with Lloyds (they merged with TSB a few years later) back in 1995 I progressed onto a student account when I went to University and, being happy with the service they offered, I decided to continue the progression onto a graduate account when I left University in the summer of 2001.

The graduate account was an extension of my original student account with more benefit and more credit being offered.

=Who can apply?=

To qualify for the graduate account you must be a permanent resident in the UK and have graduated within the past three years from a UK based University with a degree or diploma. You do not have to hold a student account with Lloyds TSB.

=How can I apply?=

Applying for me was easy as many of the application details were already on the system due to me already being a customer. For those who are not you will need to supply an existing bank statement (which must include your overdraft limit), a ten year passport or driving license, confirmation of employment and salary (wage slips or letter from manager) and, of course, confirmation of graduation.

You can apply for one at your local branch or through the Internet. Although I didn't apply online, I am aware that once you have completed the forms you will still need to visit your local branch to sign the agreements and produce the required documentation as detailed above.

The forms are easy to complete and are all factual questions regarding your personal information such as address, date of birth, etc and goes on to income, etc. The whole process takes between fifteen minutes to half and hour depending which of the options you decide to take as detailed below.

=So what's on offer?=

OVERDRAFT: Most students finish University life with a student overdraft and the Lloyds TSB graduate account offers to
extend this (if it's not that high anyway!) to £2,000. The overdraft offers free banking up to the agreed amount for three years and is negotiable there on.

LOAN: The graduate loan is designed to help you settle down in the period between graduating and finding a job. Although up to £10,000 is offered you are expected to justify the amount, although once agreed the use for the money is not checked. The loan can be repaid over five years by direct debit each month, and you can delay repayments for the first four months. Protection is advised to be taken out and if this is, along with interest, you can expect to pay back about £25 a month for a £1,000 loan.

CREDIT CARD: Another option is a credit card. The limit can be as much as £1,000 to start and negotiable there after. The standard rate of interest is 17.9% APR with a 1.9% transfer rate.

Other extra's include a debit card, use of both Internet and online banking, and access to a personal advisor if you need one.

There is also an extension to the graduate account, the Gold Graduate. This offers all the above as well as travel insurance, card protection and holiday discounts.

=My experience=

As I've already touched on, Lloyds had always offered me a good service and my local branch was friendly and organised. This service has continued and help has always been at hand if (or when!!) I need it.

The one thing that I would advise is that students looking to update their account to graduate status should think very carefully about what?s on offer. If you fulfil the criteria the banks are all too willing to offer these products but when you?re struggling to repay them they'll also be quick to fine you. The thing to evaluate is the payback costs against your salary, including any debt already accumulated through your student years. It can be all too tempting when money is offered to you on a plate!

=Overall=

If you can afford
the repayments then the options are excellent and cheaper than normal. The level of service will obviously depend on your local branch but in my experience they are only too happy to help and advise.

Summary: