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Many financial institutions in Canada offer special rates and perks with their bank accounts for students before they graduate or turn a certain age. 

But what happens once you graduate? Do all those benefits and lower rates automatically disappear?

Let’s discuss what happens to your student bank account after you finish your studies and what you can do to continue taking advantage of lower banking fees

Student Bank Account Vs. Regular Chequing Account

The biggest difference between a student bank account and a regular chequing account is the pricing. Banks want as much business as they can generate, and one way to do that is to offer incentives and special offers to draw new clients in. One incentive they often provide is a student bank account that comes with discounted fees to help clients save money. 

Clients usually must be between the ages of 17 to 24 years old to be eligible for these accounts and receive the discounts that come with them. Some banks offer dedicated student accounts, while others may simply waive the fees that come with a regular account. 

Student bank accounts are usually characterized by the following:

No Monthly Fees

This is the biggest benefit of having a student bank account and is usually the perk that banks advertise to draw in new, younger clients. With no monthly fees to pay, clients can save a bit of money each month, which can be very helpful for students.

Unlimited Transactions

Chequing accounts often come with a limit on the number of transactions included per month. If you go over this limit, you’ll be charged for each individual transaction. Student bank accounts, however, often come with the added benefit of unlimited transactions, so you don’t have to worry about exceeding the limit before being charged extra.

Watch out for these bank withdrawal fees.

Linked Debit Card

Student chequing accounts will come with a debit card linked to the account, which can be used to withdraw funds from an ATM or to pay for purchases at point-of-sale terminals. 

Credit Card Perks

It can be difficult to get approved for a credit card when you’re just starting out and don’t even have a full-time job yet. But, with a student chequing account, your bank may offer competitive credit card terms if you choose to add a student credit card to your chequing account.  

Lower Purchase Limits

Some student bank accounts may come with lower purchase limits, which can help you avoid overspending and keep your bank balance in check. 

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What Happens To My Student Bank Account After I Graduate?

After you graduate from a post-secondary school, your status will change with your bank, which means your bank account will also see a change in status. Just because you initially took out a “student” bank account and are no longer a student after a few years does not mean that your bank will close your account.

Learn how to pay off your student debt fast.

Instead, the account will likely be changed over into a standard bank account with the typical fee structure that it would normally come with. Since you’re not a student anymore, you will no longer receive the discounted student pricing. 

Your bank account’s status may also change based on your age and the age of your bank account, in addition to a change in your status when you are no longer considered a student. 

Check out these student credits and deductions.

How Will My Bank Know I’m No Longer In College Or University? 

When you first open a bank account as a student, you may be asked about the school you’re attending and your anticipated graduation date. 

Based on this information, your bank may look into your student status once you reach a certain age or once the anticipated graduation date arrives. This may serve as the expiration date for your student account pricing perks, and will likely be when your account will convert to a regular bank account with the standard pricing structure. 

In some cases, banks may ask for proof each year to verify your status as a student and determine whether or not you’ve graduated. Otherwise, they may base the status of your account on your age or the age of your student bank account. 

If you don’t graduate on the date that you initially intended to, your bank may be willing to extend the perks of your student bank account until you eventually graduate. However, this will be up to the individual bank. 

Need extra cash for school but have bad credit? Check out how to get a bad credit student loan.

Can I Keep A Student Bank Account As An Older Student? 

Many adults choose to enter college or university later on in life rather than attending immediately after high school. But can adults enrolled in a post-secondary facility be eligible for a student bank account and all the pricing perks that come with it?

That will depend on the bank. Some financial institutions may be fine with clients having a student bank account, so long as they are enrolled in school. 

But others may require that you not only be a student but that you are also under a certain age limit. You’ll need to inquire with your bank to find out what their specific rules are. 

Tips On Switching From A Student Bank Account To A Regular Chequing Account

Chequing accounts offer a safe and convenient spot to stash the money that you plan to use on a regular basis. Unlike a savings account that is meant to house your money for the long haul while earning some interest, a chequing account is designed for frequent transactions, such as depositing paychecks and paying bills.

The following are important features to consider when choosing a chequing account after you’re no longer eligible for a student bank account:

  • Fees – There are several fees that tend to come with a chequing account, including the standard monthly fee, overdraft protection fee, and transaction fees if you exceed your monthly limit of transactions.
  • Interest – Chequing accounts don’t usually pay out any interest, compared to savings accounts. Some banks may offer interest paid on chequing account deposits, but it’s not standard practice.
  • Transaction Limits – Chequing accounts are designed for frequent transactions, but your account may come with certain limits. If you conduct more transactions than what you’re capped at, you’ll be charged per transaction.
  • Online Banking – Chequing accounts allow for online banking, including transferring funds, paying bills, and making online purchases.
  • CDIC Protection – The deposited funds in your chequing account are protected by the Canada Deposit Insurance Corporation (CDIC), up to a certain amount.

Final Thoughts

A student bank account is a great financial tool to have at your disposal as a student. Most importantly, these types of accounts come with heavily discounted fees, and sometimes no fees at all. But, it’s important to note that these accounts are only available to students up to a certain age, after which you’ll need to make the switch to a regular chequing account. In the meantime, it’s helpful to take advantage of student accounts while you’re eligible to help you save money on fees and benefit from other perks made available by your bank.

Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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