Student checking accounts are offered by many banks. Often, you can get a checking account that comes with special features, such as waived fees. This can make using a student account really attractive if you are earning your degree.
But what happens to your student account once you've graduated and are no longer in the academic world? Can you keep the money in your current account or do you need to make a change?
Here are the rules for student checking accounts
Student checking accounts are, as the name suggests, intended for people who are in school. Once you're out of school, you typically will not be able to keep the specialized bank account any longer.
Different banks have different rules on exactly how and when they determine you have graduated and have aged out of maintaining a student account. Banks could decide you are no longer eligible for this kind of account based on the following factors:
- When you graduate: Banks may be aware of when you graduate if you provided this information when you opened an account or if you are expected to report your graduation.
- Your age: With some banks, once you reach a certain age, you may not be eligible for the student account any more. The bank may set the cutoff at an age when most people move on from being a full-time student.
- How old the account is: Most people don't go to school forever. As a result, the bank may cut you off from using a student checking account after a certain amount of time has passed, such as four years or five years.
Whatever the specifics, there will come a point when you can't keep your student checking account any longer. The fine print on your specific bank account should tell you when this happens -- and what comes next.
Typically, your bank will convert your student account into a standard checking account once you have hit the cutoff point when you are no longer considered to be in school and thus are no longer eligible for the specialized account.
Once this conversion happens, your account will be subject to different rules -- and sometimes, you could find yourself facing a fee or being forced to meet certain requirements to avoid monthly maintenance charges. Your bank should notify you when it makes the change to your account, so this hopefully won't come as a surprise.
How to find a new account after graduation
When you lose access to a student checking account, you may not want to just switch to the standard account that your bank offers. In fact, since regular accounts have different features and fee structures, the account you're switched over to may not be a good fit at all.
Instead of just sticking with the default, you should research different bank account options before graduation or when you leave school so you can find the right new account for you. Pay attention to factors like:
- Monthly maintenance fees
- Whether you can avoid those fees by meeting certain requirements such as maintaining a certain average daily balance
- Other fees such as ATM fees or overdraft fees
- Whether the financial institution also offers a savings account at a competitive rate that you could link to your bank account if you want to keep your money with the same financial institution
- How convenient the bank makes managing your money
By taking the time to research new offerings, instead of just accepting the converted account your current bank offers, you can make sure a switch from student checking doesn't leave you banking at a place that hasn't earned your business.
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