Checking Accounts for College Students: What to Look For
Here are some things to think about when you’re looking at checking accounts for college students.
How old do you have to be to open a student bank account?
Some banks require student bank account holders to be 18 before they can open a bank account. Others will open student bank accounts for 17-year-olds who can also provide proof that they are college students. Some banks offer checking accounts for high school students.
What should I look for in a student checking account?
Being a college student probably means you don’t have loads of cash. You want to find a bank that doesn’t require a large minimum balance. Look for a bank with no monthly maintenance fees, no ATM fees and no service charges.
You also want a good online interface and easy mobile banking when you’re choosing a student bank account.
Is there a monthly fee for a student bank account?
Most college checking accounts waive the monthly fee. As long as a student is enrolled in school, there is no fee to have a bank account, even if your balance is very low.
Be sure to confirm that the bank you want to use doesn’t have a monthly fee. (And take note of when this perk will end. Some banks tie it to your age and others to how many years you’ve been a college student.)
Are there other charges?
Ask about extra bank fees, like overdraft fees, ATM fees, or low balance fees. It’s important to know exactly what the bank will charge for, so that you can avoid those fees. Look for a student bank account with no fees.
Does a student checking account require a minimum balance?
It shouldn’t! There are plenty of banks that do not require a minimum balance. Most banks waive this requirement for students. Similarly, there are plenty of banks that require no or low opening deposits for student checking accounts.
Will a student bank account pay me interest?
Some do. Interest rates are likely to be very low, so this probably won’t be a deciding factor in which bank you choose. If you carry a large balance in your checking account, you might want to compare interest rates between the banks you are considering.
Will banks offer incentives for students to open a checking account?
Sometimes banks run promotional incentives to entice students to sign up with an account with them. Be sure and read the fine print.
Special checking account offers can save you money or even net you a bonus for opening an account. But don’t be so excited about any free gifts that you overlook fees or requirements that could cost you a lot of money in the long run.
How good is each bank’s online interface?
Some banks have great mobile and online banking services. Others have interfaces that are clunky and hard to use. Ask about online and mobile banking before you sign up.
Your bank should have a mobile check deposit option, so you don’t have to actually go to a bank to deposit a check. Today, you can do all of your checking online.
Can you link to a student checking account to a student savings account?
It’s handy to have a savings account and a checking account when you’re in college, so choose a student bank account that will allow you to have both for free.
You should be able to transfer money from one to the other easily. This can help with budgeting because you can transfer your monthly budget into your checking account each month to help prevent overspending.
How does a debit card work?
A debit card looks like a credit card. However, when you pay for a purchase with a debit card, the purchase amount is immediately withdrawn from your checking account.
When you pay for a purchase with your credit card, you are borrowing money from the credit card company, and you will have to pay that debt later on.
There is no service fee to use your debit card to make purchases. In that way, debit cards operate like credit cards.
Debit card purchases give you the convenience of paying with a credit card without accruing any debt. You can only spend money that you have in your bank account.
You can use your debit card to withdraw money from your checking account at ATMs nationwide. There are different ATM networks. Some ATMs will charge a small fee, and others will not.
Does your bank have ATMS available near your college campus?
You should be able to use your debit card to get cash from an ATM with no fees. If the bank you’re using doesn’t have a branch at your campus, ask if there are ATMs you can use for free.
You can also use a debit card to get cash back at retailers like grocery stores and drugstores. Some retailers charge a fee for cash back and others don’t, so check first.
Bank accounts for college students should be free or low-cost:
- No or low minimum opening deposits
- No minimum balance
- No or low overdraft fees (and/or the ability to decline overdrafts)
- Reimbursement for out-of-network ATM fees
And college students’ bank accounts should be easy to use:
- Lots of ATMs near campus and home
- Overdraft warnings
- Excellent mobile and online banking interface
- In-person support at bank branch locations
Final Thoughts on Checking Accounts for College Students
There are as many options for student bank accounts out there as there are banks. When you’re looking for a student bank account, do your research and ask plenty of questions to choose the account that’s best for you!
