Check graduate accounts
Most student accounts turn into graduate accounts automatically after you have finished university, but it’s worth checking what you’re being offered. Some banks keep the interest-free overdraft for a few years after you graduate, with limits of up to £3,000, while others reduce it quickly or charge interest.
“It’s always a good idea to check how your overdraft terms might be affected, so you can make a plan to repay the debt before charges apply,” says Paul Slinger from NatWest. “Banks do, typically, notify you in advance of changes.”
NatWest offers an interest-free overdraft of up to £3,250 for your first year after graduation. This drops to £2,250 in the second year, and £1,250 in the third. At HSBC, you could get an interest-free limit of up to £3,000 in the first year, reducing to £2,000 in year two.
Lots of banks will not let you have a graduate account unless you had a student one with them. You can often switch before you finish university, but once you have graduated your choice is limited. HSBC, TSB, Barclays and Bank of Ireland all let you switch to them after you graduate, according to the website Save the Student.
Take a look at the different offers to find the one that best suits your needs, or use a comparison site such as Compare the Market to get an overview. You will usually be able to transfer any outstanding overdraft to your new graduate account if you have switched, and your old account will be closed.
If you are still in your overdraft, plan to clear it before interest kicks in. If you have another account for everyday spending that could mean a monthly standing order to your graduate account.
A graduate account might not be the best option for everyone, says Tom Allingham, money expert at Save the Student. “Of course, not every graduate will need a 0% overdraft, and if you don’t, then a graduate bank account may not be the best place for your money. If so, it’s worth considering what else you’d like from a current account – perhaps a switching bonus, or a high-interest linked saver.”
Don’t forget the loans
In England and Wales, repayments usually start the April after you finish your course, but the income threshold depends on your plan. Most students who started after August in 2023, are on plan five, where repayments kick in when they earn £25,000 a year. If you started between 2012 and July 2023, it’s likely you are on plan two, with a threshold of £28,470.
Scottish students are on plan four and pay once they earn over £32,745 a year, and are unlikely to have a tuition fees loan to repay if they studied in Scotland.
Northern Irish students are on plan one and start repaying at £26,065 a year, but tuition fees for residents are lower. All details are on the UK government website.
You don’t have to do anything, as repayments come out of your salary automatically, or through self-assessment if you are freelance.
Allingham says that, in the short term, this means recent graduates can usually relax. “That said, repayments can be mistakenly taken, so keep an eye on your payslip – if you notice an early or under-threshold repayment, look into claiming a refund,” he says.
However, don’t ignore your loan, says Slinger. “It’s worth checking your online student loan account to keep track of your balance and any interest building up.”
It’s also important to keep your details updated with Student Finance – especially if your income changes significantly or you move abroad.
Sort out council tax
You are exempt from council tax as a student but have to start paying as soon as your course ends, not from your graduation date. For most, that means you should have been paying from around June, even if your student tenancy ran into July or August. Postgraduate students tend to finish their course at the end of September, so might be exempt a little longer.
If you have extensions or resits, let your council know – it may extend your exemption. Your university may provide a letter confirming your status if needed.
Some housemates might choose to stay, while others go, and the council will usually expect payment from whoever is still there and no longer classed as a student. If you all leave on different dates, the bill might be split based on who was living there, and when.
If you get a bill and think it’s wrong, it’s worth getting in touch to explain. “Let your local council know your status, and check if you’re eligible for any discounts, such as if you live alone or with other students,” Slinger says.
Wrap up any bills
If your student tenancy has not come to an end, be prepared for when it does: at that point you should take any meter readings – such as gas, electricity and water – and send them to the suppliers so that you are only charged for what you used. The same goes for wifi – cancel it if no one is taking over, and watch out for notice periods.
If you have been splitting bills and sharing expenses with housemates, check everything has been paid, and close any joint accounts or transfer them to whoever is staying. You can use apps such as Splitwise to do this easily. “If your name’s on the bill, you’re responsible for closing or transferring the account,” says Slinger. “When setting up your next place, make sure to shop around as there may be cheaper broadband or energy deals available.”
Make sure suppliers and the landlord have your forwarding address.
Check your tax code
If you are starting a job, make sure your tax code is right – first payslips can come with emergency codes, especially if your employer doesn’t have your full details.
Check, or update, your details and income tax, through your account on the HM Revenue and Customs website or app, and get a rebate if you have been overcharged. If self-employed or freelancing, you will need to register with HMRC if you earn more than £1,000 in a tax year. You have until 5 October in the following tax year to sign up for self-assessment, so if you start now, you have until October 2026.
Enjoy student discounts
Perks don’t end the moment your course does. You can usually keep using UNiDAYS and Student Beans until your account expires. After you graduate, you can apply for UNiDAYS GRADLiFE, but you will need to reverify your account before you can access discounts. Student Beans also offers Grad Beans. “This extends your access to some of the most popular discounts,” Allingham says.
