Janine DeVault
Beth Buczynski
Many Canadian university students get student bank accounts to take advantage of lower fees and flexible account features. If you’re graduating soon, you may wonder what will happen to your student chequing account once you leave school.
Often, banks convert student bank accounts into traditional chequing accounts after your graduation date, but you shouldn’t just take what they give you.
Your banking needs and priorities may change as you enter the next phase of your life — graduation means it’s time to shop around.
A note for international students: In 2023, Canada was host to over 1 million international students, according to ICEF Monitor, a market intelligence firm for the education industry. Many international students take advantage of the Student Direct Stream (SDS) expedited visa program, which involves purchasing a GIC to fund their studies. Access to these GICs may have influenced your banking choices. With student status expiring, you now have more freedom to bank anywhere you wish.
Here’s what happens to your student account after graduation
Fees will go up
Depending on where you bank, you may begin seeing new service charges for your bank account as soon as your student status expires. Some financial institutions may offer a grace period of several months before charges occur.
Your account type might change
Some banks will automatically convert your student account into a standard banking package unless you make specific changes. The new package may have requirements or restrictions that are unfamiliar, or features that don’t align with your needs.
Should you keep your student account?
Yes, if the account features and new fees meet your requirements.
Compare your existing account with other options at your current bank (as well as competitors) to find one that works best for you.
Get more from your bank account.
See the best new bank account offers and promotions in Canada.
Converting to a standard chequing account
Look for a chequing account that supports your typical banking habits and makes it easy to manage your finances and reach your goals. Here’s what to consider when shopping for a new account:
- Is online and/or app-based banking available? Canadians are increasingly gravitating toward digital banking solutions. If this is you, ensure any account you’re considering can be accessed virtually.
- Monthly fees: Do the fees seem reasonable for the included account features? Sometimes, paying a higher fee for more flexible features (such as unlimited e-transfers) could save you money. Evaluate your typical account activity when deciding.
- Transaction limits: Ensure any limits on monthly transactions feel manageable with your usual account use.
- Minimum balance requirement: Some chequing accounts waive fees if you maintain a certain minimum balance. Consider whether this is a perk you could take advantage of.
- International money transfers: If you frequently transfer money to or from another country, finding an account that makes this easy is key.
- Perks and promotions: If you’re open to switching banks, you may be able to receive promotional rates or free gifts when you open a chequing account at a new institution.
Nerdy Tip: If your chequing account changes, your bank account number will change too. Don’t forget to update your direct deposit information with the CRA and any other organizations that may have it. You’ll also need to adjust any automatic bill payments going out of your account, such as your phone or credit card bill, to ensure you don’t miss a payment.
Additional financial considerations after graduation
Whether you enter the workforce immediately after graduation or take time to determine your next move, it’s wise to take stock of your financial situation after any major life change. Here are a few considerations that will help you meet your financial goals.
- Evaluating your finances and creating a budget. Living within your means is key to reaching your financial goals. Having a monthly budget will help you see where your money is going and how much you have left over each month. You can use this information to inform your goals, whether building up your savings, paying down your student debt or funding a big purchase.
- Upgrading or opening a new credit card. Building a solid credit history will make it easier for you to borrow money in the future. If you’ve built a credit history with a student credit card, you may be able to transition to a different type of card with a higher spending limit or a more favourable rewards program. For those who haven’t yet opened a credit card, it’s wise to begin building a credit portfolio as you enter the workforce. Either way, be careful not to spend more than you earn.
- Saving for retirement. If you’re entering the workforce, it’s wise to try saving a portion of your income in a TFSA or RRSP account to fund your retirement. The sooner you begin saving toward your retirement goals, the less money you’ll need to put away each month. Even if it’s just a tiny amount at first, every little bit counts. Use the Government of Canada’s budget planner tool to determine how much you can save each month.
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