I do not dispute that perhaps graduates should not have the incentive to run up a huge overdraft. However I believe HSBC have gone entirely the wrong way about changing their policy. If they were really trying to prepare graduates for the real world, why would they only start sending out letters informing graduates of the changes at the very last minute? As i said in my local branch, I am sure that this change has not miraculously been thought up in the past month, so why did it take them so long to inform us? The only possible explanation is they are purely concerned with making more money. I strongly feel this is a socially irresponsible act, to promise the gradual repayment of an overdraft, then take that promise away at the very last hour. After making my views known to my local branch I received an extremely poorly written letter back from HSBC, which did not even make sense. I found that to be the final insult and am looking forward to switching banks.

Harriet Clarke, Kent,

I have been with HSBC / Midland for over 20 years and when I went to University naturally obtained a student account, which I then kept during my PGCE 2005-2006... what annoys me about this change is that I wrote to them last year and told them I was graduating, but they didn't change my account over, it is still a 'student account'... I am hoping that they will accept that I send of their own pre-paid form informing them that I was graduating last year. If they don't change me to the old graduate account retrospectively from last year they will loose a client of over 20 years...

Ian Godfrey, Hong Kong, Hong Kong

I've been with HSBC for over five years and as someone graduating in 2008 I think this is absolutely the right decision to be made. Students should not be able to settle into the comfort of a huge interest free overdraft as it only sets them up for trouble in the future. Many just see the overdraft as another source of cash which they can put off repaying for years to come. At least this way students will be encouraged to think realistically about what they can and can't afford to spend and will know what life, financially at least, after graduation will really be like. Stop complaining and get a part time job! I can only possibly sympathise with those studying at Oxford or Cambridge who aren't allowed part time jobs and those studying within London.

Kesley Attridge, Keele, UK

I bank with HSBC and have heard nothing about the new interest charges. I went into my branch today, one member of staff told me that the graduate account still existed, however the next person i spoke to told me that my account had already changed status to a normal current account and i would start paying interest on my overdraft within the next 2 weeks. I have a well paid graduate job to go to in September but there is no way i can clear my overdraft before then; HSBC just didn't care. All they were interested in was getting me to sign up to their 'plus account', get a credit card and take out a loan; is this really supposed to be helping us get out of debt?!? I went straight to the other end of the High Street and spoke to the nice people at Lloyds TSB who have really good graduate accounts. Needless to say i will be closing my HSBC account!

Jessica Solomon, West Midlands,

I wasn't even aware. As a hsbc customer for the last three years I have received no correspondance from them regarding the changes to my account. I think this is disgusting. Money would have been disappearing from my account and it's likely i would have been none the wiser. It's time for a chnage and I vote natwest.

Emma, Harrogate,

I am currently with HSBC and will be graduating next year, but now I've heard this I am looking to move bank. Don't know if I will get another student account with one year left to go, nevertheless I will still move as soon as possible! The most galling thing is that I have received no correspondence from HSBC informing me of current changes that will affect me in the future.
This reflects an increasing trend with many companies nowadays, that customers are poorly informed (I stop short at saying misled), or at least information is rarely volunteered, so people have to go actively searching for it themselves, ie. on companies' poorly laid out websites which seem almost purposely designed to hide any information of benefit to customers.

Lucy, Essex,

Cheers HSBC!! Thanks for letting me know too (not). Having given me such a good student account deal, I am astounded that they are willing to loose 1000's of potential customers by stopping their free Graduate overdraft. This seems to be another 'sneaky' moove by banks to get as much money out of us as possible, by stealth.

After 8 years, it's going to be goodbye HSBC, hello NatWest or RBS. Don't expect me in the future to remember HSBC when I'm on the up, and they're on the down.

This really is poor show HSBC. You obviously don't mind loosing customers who may provide your bank with a lot of business once we're on our feet.

James Wright, Reading, UK

For no apparent reason I was denied a student account from HSBC, missing out on their mp3 offer (they also lost photocopies of my passport and UCAS acceptence letter), and so opened one with NatWest. Karma!

Nick, London, UK

I bank with HSBC and graduate this year and with 17 days to go until our accounts get switched and the interest being charged from August I have had no notice from HSBC that this is officially happening! It's a disgrace!

I worked during my time at university but my loan never covered my rent, let alone my textbooks, gas and electric bills!

And with regards to John West's comment above: some of us actually have to use our overdrafts to pay for things and not keep it in a savings account! Not everyone is in the same situation as your friends! I may have thanked them in the long term if they gave me longer than 4 weeks to clear my overdraft so that I wouldn't be charged!

I never had a problem with HSBC before but I certainly do now! I'm switching to RBS as soon as possible!

Stephanie D, Hampshire,

I would like to say that I am suprised at HSBC's treatment of students but sadly I cannot. Although I do not bank with HSBC I have many friends who do and for some strange reason, they will put up with the unacceptable treatment by HSBC but strangely enough will not leave them!

Hopefully this will be their final incentive to leave a bank that clearly only cares about its Premier account holders.

From a happy Natwest customer!

Valerie, London, UK

I'm one of the customers affected by this, and as of yet, I've heard nothing from HSBC.
The simple fact is that HSBC encouraged interest free borrowing up to the level of £1,500 over three years, and axed the graduate account which every customer assumes will exist on graduation.
I wonder why we still haven't been notified properly, or perhaps they would hoping it would be too late before we realised?

Off to Natwest I go.

Tom, Bristol, United Kingdom

Could somebody explain if this applies to post graduate accounts that end this year? If so HSBC will be losing customers with premier accounts, mortgages and savings accounts; I would be ready to switch.

E.Ellis, Nottingham,

Whats amazing is that none of HSBC's own call centres seem to know anything about his! As an effected student whose account should be changing over to a graduate account in July 07, I have not been notified by HSBC to any change in their terms and conditions, I've spoken to HSBC call centre who seem to know nothing about this, and I'm discusted to be finding out about this via the press and not from the bank.

I go traveling on Thursday for four months, and if it had not been for this article would not even know this was happening! Also absolutely no time to switch to a competitors graduate account before I leave....dire.

For anyone else in a similar position, Loyds, Barclays and RBOS all offer very competitive graduate accounts ;-)

Pete, Bristol,

Truth is it costs to borrow. I think they should stop giving free borrowing to students to help them avoid getting into overdraft debt in the first place.

I changed my overdraft into a loan and soon paid it off.

Most of my friends didn't need the overdraft so just withdrew the money and put it in a savings account, so it cost the bank to give them the overdraft then they paid out again in interest.

Might not sound good for graduates but they will be grateful in the long term. I wish the bank had never given me an overdraft in the first place.

John West, london, england

I think this is disgraceful as when these students opened their accounts and encouraged to use the overdraft, they were promised they would have 3 years in which to repay it at interest free terms.
HSBC have also introduced a £10 charge if customers want to pay a bill directly from their accounts at the counter. It is only free if you use the telephone, internet or one of their express banking machines.
The only customers they really want to keep are the Premier account holders as they have lots of money. Very short sighted as how many new graduates will one day become the wealthy customers of tomorrow, and remember the shabby way they have been treated .

Carl, Brown, Aylesbury

I've banked with HSBC for years and now have a graduate account with them. To be honest their service has always been poor but I've never quite had enough incentive to leave. Now here it is. I look forward to the U-turn in a few years time when the bankers realise the long term damage they will be doing themselves. I understand they may wish to focus on more lucrative fields but they have lost my custom - and, I suspect, that of many others like me - for life; long after my student overdraft is a distant memory. Surely a case of short term gain, long term loss?

Joe M, York, UK

Students - just remember NEVER to bank with HSBC after you graduate! Over your lifetime you will earn plenty of money which HSBC won't be able to profit from unless you let them.

Sarah N., London,