Here’s What to Do About Your Student Checking Account When You Graduate

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

When you graduate, your student account could be converted by your bank or you could decide to move your money elsewhere. Learn more here. 

Student checking accounts can be a really attractive option for college students. These accounts usually come with fewer fees and requirements than traditional accounts. But they don’t last forever. Once you graduate, you may lose access to the account you were using while still in school.

So, what exactly should you do about your student checking account? Here are some of your options.

Allow the account to switch to a different one at the same bank

Many banks will automatically convert your student checking account into another type of account the financial institution offers. Simply switching to the new account that the bank opens up for you can be a convenient and easy option since you don’t actually have to do anything if you take this approach.

However, it’s important to understand how the new account differs from the student account that you had before. You may find that there are additional fees you were not charged on your student account, such as a new monthly maintenance fee. Or you may now have a new minimum daily balance requirement that you have to fulfill in order to avoid being charged a monthly fee.

If the new account doesn’t come with a lot of additional charges and you are generally happy with the bank and want to stick with it, there’s no harm in doing so. That’s especially true if the bank is convenient to where you live, if you have multiple accounts with the bank you want to keep, if you love the banking app and are used to using it, or if you’ve received great customer service.

Shop around for a new checking account

Although you can stick with your existing bank, it is worth shopping around to see if a different financial institution may have more to offer you now that you are no longer a student.

A new bank may provide an account that charges low or no fees, which could be a better option if you’d be stuck paying for your account with your existing financial institution. Or it may offer other special perks you want to take advantage of, such as free checks or reimbursement for ATM fees.

If you want to keep your checking account and savings account with the same bank, a different financial institution may offer you a better interest rate than your current one does. This could be reason enough to switch — although there’s nothing wrong with having a checking and savings account with different banks if you’d prefer to take that approach.

Ultimately, while you may decide to just accept the new account your bank switches you to once you are no longer a student, you should take the time to see what else is out there. There’s a wealth of options for adults who want a checking account offering great benefits, so don’t settle for the status quo until you’ve explored your choices.

It takes a little time to shop around to find the right bank, but since your checking account is going to be central to your financial life for years to come, it’s worth the effort.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 11x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More