If you are in your last year of college, is your student checking account or student credit card still usable? After graduation, you will be an adult right? I’m sure many other students and graduates-to-be are pondering the same question.

As expected, every financial institution has its own terms and conditions regarding the specific accounts that are opened. So, it is difficult to provide a universal answer for what happens to student accounts after graduation. But, many of them follow similar policies.

Why should this be a concern to college students:

Student Checking Accounts

Many freshmen sign up for student checking accounts to get their foot into the world of banking. Student checking accounts offer free checking with no minimum balance required, no monthly maintenance fees, ATM fees, online banking and debit/check cards.

After graduation, student checking accounts usually become regular checking accounts with your bank. These regular accounts charge monthly maintenance fees unless certain requirements are met, which waive these fees. You don’t want to be slapped with a charge that you could have otherwise avoided or expected.

  • What happens after graduation:
    Many banks will allow you to hold your student check account for 5 years since opening it (1 year after graduation). Afterwards, the student accounts usually become regular checking accounts and those terms and conditions apply. You become responsible for the fees and whatnot. Most banks require a monthly direct deposit or minimum monthly balance to waive these fees. So, you should look around to see if other checking accounts fits you better.

Student Credit Cards

Student credits usually start off with low credit limits and a higher APR than regular versions of the credit card. Switching from a student card to a regular card would increase the maximum credit line and lower the interest rate (provided that you have a good repayment track record).

  • What happens after graduation:
    Nothing really happens. The credit line remains accessible as long as the account isn’t closed. These cards are usually a young adults first trace of credit history so they shouldn’t be closed. What a graduate SHOULD do is to call in to convert the card to a regular card.

The transition to an regular accounts should be simple and easy. The concern is to avoid checking account fees and to upgrade from student credit cards. Building a good credit history would mean eligibility to credit cards for people with good credit score.