It's your first year of college, meaning it's
your first real step towards adulthood and the real world. Whether you
are commuting from home or living in a completely new area, there is a
sense of independence that almost everyone feels when they begin their
college tenure. An important step that many people take at the brink of
maturity is to open their own checking account. Many banking
institutions offer special checking accounts catered to the needs of the
average, first-year college student.
Now, before you run off to the bank to set up your very first checking account, here are some tips to help you:
1. Make Sure The Bank Is Nearby
A key factor that will affect your decision when choosing a financial
institution for your college student checking account is the location
of the bank. Opening a student checking account at the local bank in
your hometown makes absolutely no sense if you are going to school
across the country. Locations near campus and accessibility will affect
your decision on whether you want to go with a big bank, or smaller
institution like a credit union. Paying a non-bank ATM fee when you are
strapped for cash can really hurt your monthly budget.
2. Find The Location Of Nearby ATMs
You may be able to sign up for a student checking account at a
financial institution far from campus if you can find a nearby ATM. Many
credit unions and local banks are a part of ATM networks, allowing them
to have multiple, fee-free ATMs in a wider range of locations. While
these ATM networks may not match the convenience of a big bank, many
college campuses tend to have at least one credit union ATM that is part
of a network.
3. Look For A Low Minimum Deposit
If you are entering college with little to no job experience, chances
are you've been living off of the allowance money you received from
your parents with the only savings in the form of loose change and a few
bucks in a piggy bank. When opening a college student checking account,
shop around for a bank with a low minimum deposit. Most minimum
deposits for student checking accounts should be low to begin with, but
there are some that can be as low as $1!
4. Ask About The Monthly Fees
Review any monthly fees required for maintaining your college student
checking account before you sign up. Make sure you read the fine print,
as some financial institutions may promise no fees, but require certain
conditions that must be met to avoid some type of service charge. They
may tell you it's a free checking account, it may even have the word
"free" in its name, but until all the rules and requirements are made
clear to you, assume there is some type of service fee for your student
checking account.
5. Know What Is Being Offered
You may have a new checking account, but what privileges and services
are you entitled to? Do you get free online banking? How about a debit
card? Make a list of the things you want most from your checking
account, and make sure the bank you choose can meet most or all of these
needs. Having a checking account that is only good for depositing and
withdrawing money is no better than stashing money under your dorm
mattress.
6. Credit Cards
Upon enrolling for a student checking account, you may be eligible to
receive a student credit card through the bank. Often times, these
credit cards have a low interest rate and low line of credit. This works
out very well for college students who don't want to rack up huge
credit card debt, and may not be able to pay off a credit card bill all
at once. A student credit can be very handy for emergencies.
7. Are There Any Rewards?
Some financial institutions may offer perks or rewards for college
students who are signing up for their first checking account. For
example, you may receive your first set of checks for free, or you may
be rewarded for using your debit card on certain purchases. Find out if
your student checking account comes with rewards and be sure to take
advantage of them.
8. Linked Savings Accounts
In some cases, new college students may already have a savings
account in their name. Find out if the institution where you have your
savings account offers a student checking account that you can link
together. This will prevent heavy overdraft charges, and makes
transferring money simple in times of emergency.
9. Co-signing with Your Parents
Parents who are sending money to their children for college may want
to have a joint checking account, or at least link their account to
their child's student checking account. This makes money transfers easy,
and allows parents to conveniently send money to their child in
increments to ensure they don't go over a monthly budget, or in case of
emergency.
10. Look Towards the Future
A student checking account is a great way to establish a relationship
with a financial institution you may be using for the rest of your
life. Take the time to learn more about the company that is providing
you with a student checking account. They may have services that can be
useful to you once you've graduated college.
