Thousands of new graduates will be hit by overdraft interest payments after a high street bank announced plans to become the first to scrap free overdrafts for university leavers.

Traditionally, banks allow new graduates a three-year interest-free period on their student overdrafts. But those who bank with HSBC will have to pay nearly 10 per cent interest on their overdraft from August. For those with the maximum overdraft of £1,500, this will cost almost £12 a month.

HSBC defended the move by saying that it would prepare students for life after university. Karen Garner, a spokeswoman, said: “This gets the message across that there is a cost to borrowing, and prepares graduates for the transition from student life to that of a young working professional.”

The bank did not reveal how many graduates would be affected but the National Union of Students (NUS) said that a significant proportion of the 280,000 undergraduates finishing their degree this summer were likely to hold an account with HSBC.

Banks have been looking for ways to recoup money after the Office of Fair Trading capped credit card penalty charges in April last year. They have also been hit hard by millions of bank customers reclaiming overdraft penalty charges.

Experts say that cutting the perk of interest-free overdrafts for graduates could catch on. Most high street banks have already launched graduate accounts with interest-free overdrafts for this year’s graduates, but next year’s leavers may not be so lucky.

Mark Dampier, of the independent financial adviser Hargreaves Lansdown, said: “If HSBC does it, it could easily become a trend, because the banks often follow each other. Let’s face it, they aren’t exactly imaginative.”

The bank offers a free overdraft of £1,500 as standard to students in their third year, but from July 16 they will be transferred to a new standard graduate account. Overdraft charges of 9.9 per cent will kick in a month later. Alternatively they can choose a premium account, with an interest-free overdraft, for £9.95 a month. Those who graduated before this summer will not be affected.

Michelle Slade, of the price comparison site Moneyfacts. com, said: “I’m very surprised. The impression is that they aren’t interested in the graduate market any more. With the amount of free overdraft deals available graduates will almost certainly look elsewhere.”

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