Student Checking Account

A student checking account is a great way for young folks to get their foot in the door at the bank, and to learn some money management skills. These accounts are set up specifically for the student, they are usually fee free and have some other perks attached.

Not paying a fee to maintain a checking account is very important to most students, because they simply can not afford to lose the money each month to fees. There are a few things to consider though when you are signing up for a student checking account.

Benefits

The benefits are clear with a student checking account , and it is largely in the form of a much more liberal policy associated with these accounts. Usually there are no fees, no minimum balance and there may even be a low credit line attached to the account as well.

Most banks provide the student with a check card which is super convenient. Some banks even offer financial advice free of charge in the form of online lectures and in person financial counseling.

Restrictions

Most of these accounts are fee free as mentioned, but there may be some restrictions that can turn your fee free account into a quite expensive account if you do not play by the rules. For instance, you may have a fee free account as long as you do not have more than a certain number of transactions on the account. The bank might limit your transactions each month to a relatively small number of transactions for free.

The number of transactions can be as low as ten per month. The transactions might include both checks and deposits. It is important to know what the specifics are so that you can avoid paying fees. Some banks charge up to two dollars per additional transaction each month, this can add up pretty quickly.

Another restriction to look out for is that there may be a limit to the amount of money that you can keep in this type of account. There also may be a minimum deposit that you have to keep in the account as well to keep the account open. It is important to fully understand these requirements as well.

If you are under eighteen you will have to have a parent or guardian sign for you as a cosigner on the account, the bank simply wants to make sure if you owe them money they will be able to collect it from a responsible adult.

A word to the wise, unfortunately many students leave school deeply in debt, because they take on far more credit than they are prepared to pay. Banks and other financial institutions know that you are broke and really need money so they make the money available with the idea that you are in college and you will get a great job when you graduate, this may or may not happen.

Be very careful when you are signing up for a student checking account and do not take more than you can pay back if the bank offers you a line of credit for your account.

Student Checking Account Offers  

Student checking account offers come in all shapes and sizes. Some of these offers provide the perfect way to get your feet financially wet. Some of these offers are not so great. As a part of being an informed consumer means that you do your homework which in this case means that you compare the offers to see which ones work for you.  

Some Key Components of Great Student Checking Account Offers 

There are a few key components that you should look for in any student checking account offers.  No fees are one of the most important factors when deciding which offer is best for you. You do not want to have to pay any fees at all for your checking account. You also do not want to have too many limitations that are tied into those no fee offers.  

Unlimited transactions are also a huge plus when you are trying to decide which offer to take.  Some banks will restrict the number of transactions that you can make on student accounts; it can be very hard to remain within the limitations.  

Free check cards that you can earn returns on is also a great benefit that many banks offer and definitely should be considered as a huge selling point when comparing banks.  

Easy access is another huge point that needs to be considered, you want your money to be available for example say you get a check from home, it can be a real hassle to have to wait 7 or 10 business days for that check to clear so you want to make sure that you discuss the policy before signing anything. 

Student checking account offers that offer interest as an incentive are also a great benefit, some banks also offer reward points for using a check card.  

Things to Look Out For 

Most banks use the “no fee” checking as a huge promotional tool to bring in the business of students.  This is a great opportunity, but if there are too many limitations put on the account than it serves no purpose to offer no fee checking because typically if you go over the number of transactions for the month than you will be charged fees for each additional transaction.   

In some case when you are offered an interest bearing account, there may be a requirement to maintain a certain balance.  In some cases you may also be required to open the account with a certain deposit to begin with.  

Read the fine print to make sure that you fully understand what you are signing up for, and it is perfectly permissible to shop around and find the best bank to suit your needs.  Remember that student checking account offers are there for you to take advantage of, but you want to be sure that you get a deal that work for you.  

Student checking account offers are made to be taken advantage of; they are a great way to get your foot in the door at a great financial institution.