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What Happens to a Student Bank Account After Graduation?
Key takeaways
- Most banks automatically convert student accounts to regular checking after graduation, when you reach age 24, or after four to five years
- Regular accounts may include monthly fees and minimum balance requirements, but these can often be waived if you meet the requirements for direct deposits, combined balances, and/or linked accounts
- Review your bank's conversion terms before graduation and compare other banks' offerings to find the best features for your post-college financial needs
Banks may focus on providing financial services, but they're also in the business of financial education and literacy. Many offer checking and saving accounts geared toward college students to not only serve their banking needs but also help them learn to manage their money responsibly.
Many of these student accounts have features like:
- No, or reduced, monthly fees
- No minimum balance requirements
- Free ATM access
- Mobile banking tools
- Overdraft protection
But what happens to your student bank account after graduation?
After the account holder graduates, reaches a certain age, or has had the account for 4 or 5 years, banks may convert student accounts to regular checking accounts. These accounts often come with different fees, features, and eligibility requirements.
As you leave academia and embark on adulting, it's a good idea to familiarize yourself with the coming changes, so you know what steps to take after graduation and make smart financial decisions from the start.
In this article, we'll explain the typical account changes that occur and explore some good options to look for in post-graduation banking.
When do banks convert student accounts to regular checking?
Banks set their own criteria for when they convert a student checking account to a regular account. Typically, banks convert student accounts:
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After graduation. The bank won't have first-hand knowledge of your graduation. It's up to you to inform them
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4 to 5 years after you open the account. Banks may assume you've graduated by this time. In reality, many students do not graduate in this time frame, so if you're still in college, you may ask the bank for an extension
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When you reach a certain age. Some banks will keep student accounts active until you're 24, figuring that you're unlikely to be a full-time student by that age
Common account changes after graduation
Losing student status means losing some perks that came with your student account.
Though most banks will convert you automatically to a regular account, you can shop around for features and terms that will benefit you the most.
Here are some changes to expect and factors to consider regarding checking and savings accounts:
Monthly maintenance fees
It's likely that a basic checking account will come with a monthly maintenance fee. Many banks waive the monthly fee if you meet the requirements regarding direct deposit, a minimum balance requirement, and/or an accompanying savings account.
Minimum balance and direct deposit requirements
Regular checking accounts at many banks require you to keep a certain amount of money in the account—a minimum balance. Banks also may offer ways to avoid this requirement, including by direct depositing a minimum amount or more each month. To avoid confusion, make sure you know what type of minimum is required.
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A minimum daily balance means you must have that minimum amount at the close of each business day.
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A monthly average balance (MAB) requires a certain amount of money over a statement period.
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A combined balance across multiple accounts means you can qualify by meeting or exceeding a minimum balance for all eligible accounts.
Changes to account perks
You might have gotten used to some benefits of your student bank account, such as overdraft protection, fee-free ATM access, and low or no minimum balances.
Converting to a regular checking account may mean:
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A change in overdraft fees. The average overdraft fee is $35, although some banks don't charge them. Your new account might provide new services and a different fee structure
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ATM fees. If you use ATMs that are outside your bank's network, your bank might not charge you any fees while reimbursing you for fees charged by the other bank or network, if you meet certain requirements
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Budgeting and financial tools. Your new account could offer a wide range of mobile and online tools and options
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Low opening deposit requirements. To keep you as a customer, a bank may offer low deposit requirements
Possible student account upgrades
Some banks offer upgrades to student accounts when the account holder "graduates" to regular checking. These accounts may offer free overdraft protection, high-yield options, and financial education tools.
Other upgrades may include:
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Interest-bearing checking accounts
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Free checks
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Checking account rewards
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Free FICO® score access
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ATM fee reimbursement
What should you do before and after graduation?
As you prepare for graduation and/or life after college, here are some steps to take.
Before graduation:
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Review your bank’s student account terms and conditions. When will conversion take place? What fees can you expect, and how can they be avoided or minimized?
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Compare what your bank offers to what else is out there. You're not obligated to stay with your bank, so you can close or switch bank accounts to find features and benefits that fit your financial and digital lifestyle.
Before graduation:
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If you switch banks, move automatic payments and subscriptions to the new account and update address and contact information. The U.S. Consumer Protection Bureau has several helpful tips.
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Set up direct deposit for your paycheck. Many banks waive their monthly fee if you meet their direct deposit requirements.
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Sign up for paperless statements.
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Activate the bank's mobile app and set up alerts (i.e. low balance, overdrafts, fraud, etc.).
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Monitor your account for new or unexpected fees.
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Open a savings account for an emergency fund and set up an automatic transfer or direct deposit to help it grow. Link savings for overdraft protection.
Can you keep a student account after graduation?
In most cases, no. Banks automatically convert student accounts once you’re no longer eligible according to their policies: your age or how long the account has been open, for example.
However, most banks provide a grace period after graduation when a student account may still be active. This lets you adjust to your new banking reality without immediately dealing with the switch to a regular account.
Be sure to ask about the length of the grace period when setting up your student account.
If you are pursuing graduate school, you may qualify for extended student benefits. Always ask your bank for details.
FAQs
If you stick with the same bank, your account number and debit card shouldn't change when your student account converts to a regular checking account. This is helpful when you have regular monthly payments or subscriptions going out.
Again, confirm the details with your bank.
Yes. As you approach graduation, look for emails or text alerts from your bank notifying you when your account will convert.
Most banks offer a grace period after graduation to allow you time to adjust to a regular account or shop around for a new bank.
If this happens, be sure to notify your bank, because it may be possible to extend your college checking benefits until you do graduate a semester or a year from now.
Related articles
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