How Student Banking Works


Student Banking After Graduation

All good things must come to an end, and unless you're that one undergraduate who can be called a ninth-year senior while still taking introductory classes for an undeclared major, you're going to get out of school (or at least you're planning to do so) at some point. Upon graduation, you'll get a job, and if you're really lucky, people will finally stop asking what you're going to do next.

The bank won't ask you that. In fact, it won't ask you anything. It will just take away your student status and all the free checking and low minimum balances that come with it. If you're lucky, the bank will notify you of the change, but it's not required to, and different banks have different cut-off dates. Some limit you to five years from the day you opened the account, while others go by age limit. However your bank does it, you'll need to keep track of it.

Since you're monitoring your bank account closely, this shouldn't be a problem, right? The bank will likely have a basic non-student account to switch your account to, with a different fee structure and different rules. Of course, the basics of avoiding overdrafts and spending only what you have still apply. However, as long as you're going through the whole getting-out-of-school life change, you might as well start shopping around again for the best banking deal.

For more information on student banking, personal finance and related topics, visit the links on the following page.

Related HowStuffWorks Articles

Sources

  • Center for Responsible Lending. "Overdraft Explosion." 10/6/2009 (accessed 1/12/2010) http://www.responsiblelending.org/overdraft-loans/research-analysis/crl-overdraft-explosion.pdf
  • Cheng, Haiyang et al. "An Analysis of Personal Financial Literacy Among College Students." Financial Services Review. Vol. 7, no. 2, pp. 107-128. 1998
  • Code of Federal Regulations. Title 12, Chapter II, Subchapter A, Part 204 http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=8ba0fb573434c002b9c9ae3cee507909&rgn=div5&view=text&node=12:2.0.1.1.5&idno=12 (accessed 1/14/2010)
  • Consumer Federation of America. "Overdrawn: Consumers Face Hidden Overdraft Charges From Nation's Largest Banks." June 9, 2005 (Accessed 1/12/2010) http://www.consumerfed.org/pdfs/CFAOverdraftStudyJune2005.pdf
  • FDIC. "Study of Bank Overdraft Programs." November 2008 (accessed 1/15/2010) http://www.fdic.gov/bank/analytical/overdraft/FDIC138_Report_Final_v508.pdf
  • Feddis, Nessa. "Testimony of Nedda Feddis on behalf of the American Banking Association." 10/30/2009 (accessed 1/15/2010). http://www.aba.com/aba/documents/press/OverdraftTestimonyFeddis103009.pdf
  • Flores, G. Michael. "Payment Systems Evolution and Branded Prepaid Card Analysis." October 2009. (accessed 1/14/2010) http://www.nbpca.com/docs/Study-Cost-of-Prepaid-Cards-to-Consumers.pdf
  • Hayhoe, Celia Ray. "Differences in Spending Habits and Credit Use of College Students." Journal of Consumer Affairs. Vol. 34, no. 1, pp. 113-133. Summer 2000.
  • Lyons, Angela. "A Profile of Financially At-Risk College Students." Journal of Consumer Affairs. Vol. 38, no. 1, Summer 2004
  • SallieMae. "How Undergraduate Students Use Credit Cards." April 2009 (accessed 1/12/2010) http://www.salliemae.com/NR/rdonlyres/0BD600F1-9377-46EA-AB1F-6061FC763246/10744/SLMCreditCardUsageStudy41309FINAL2.pdf
  • U.S. House of Representatives. H.R.3904: Overdraft Protection Act of 2009 (accessed 1/15/2010)http://www.govtrack.us/congress/bill.xpd?bill=h111-3904

More to Explore