Money hacks How to sort out your finances after graduation

Most student accounts turn into graduate accounts automatically after you have finished university, but it's worth checking what you're being offered.

- Mabel Banfield-Nwachi

Check graduate accounts 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.