Top Checking Account Options for Students
Key Takeaways
- National banks like JPMorgan Chase and Bank of America make checking accounts specifically geared toward students.
- Online banks like Ally and SoFi offer low-fee accounts with additional ways to save money like accruing interest and cashback rewards.
- Read all of the fine print about the account to understand how to maximize savings while staying within the set limits.
As a college student, it’s easy to make poor financial decisions. It only takes a few missteps to generate credit card debt or pay hundreds of dollars in senseless bank fees.
That’s why it’s key to choose a bank account that offers a variety of ATM and online banking options, as well as low interest rates, limited fees and no minimum balance or transfer restrictions.
Best Student Checking Accounts to Avoid Fees
While everybody understands that banks need to make money, there’s no need to be nickel-and-dimed. “College students opening a bank account need to be mindful of the potential fees, from account maintenance fees to ATM fees,” says Anna Keisler, a certified financial planner.
Fortunately, it isn’t that hard to dodge banks that impose fees. “A lot of institutions offer accounts marketed to students, with lower account minimums and sometimes other ways to avoid account maintenance fees. It’s important to remember those fees do add up over time, so students should include them when comparing accounts from different institutions,” Keisler says.
“They should also shop around before deciding which bank to use and which account to open. With the number of available institutions, they have options from online banks to credit unions to banks with a physical presence,” she adds.
Some banks you might want to consider are Ally Bank, Capital One and SoFi – all online banks that offer access to ATMs across the country. As for fees, most banks are going to have some fees, such as overdraft fees, if you go into the negative. The trick is finding banks that either limit the fees to things like paper statement fees that you can eliminate if you get your statement through email, or finding banks that don’t offer too many overdraft fees.
The Ally Bank Spending Account charges no monthly maintenance or overdraft fees. Plus, the account earns an annual percentage yield of 0.10%, or 0.25% if you have a balance of more than $15,000.
Capital One also does not impose an overdraft fee or any maintenance fees. The 360 Checking account also does not charge fees on foreign transactions.
The SoFi checking account includes a special offer for college students: Sign up with your .edu email address and get a $30 cash bonus when you fund your account. SoFi Checking has no account maintenance, overdraft or minimum balance fees. You’ll also earn 0.50% APY on your checking balance.
Best Student Checking Account for Studying Abroad
College students interested in studying abroad may want to consider opening a Schwab Bank Investor Checking Account. This account is part of the Charles Schwab online banking portfolio and comes with no monthly service fees, no account minimum and no overdraft fees.
The best part for students studying abroad is the unlimited ATM reimbursement feature. Charles Schwab will reimburse all fees (both domestic and international) from ATMs that accept your Schwab Bank Debit Card. This makes access to cash simple and cost-effective for students living in foreign countries. Plus, there are no foreign transaction fees when you swipe your debit card abroad.
Best Student Checking Accounts for Brick-and-Mortar Branches
“Don’t assume that you will need a new bank when you go off to college or university even if the school is a different city or state,” says Peter Kubiska, chief marketing officer at the regional bank Dollar Bank, headquartered in Pittsburgh. “In today’s world, your existing bank may still meet your needs. For example, with online banking, mobile apps, surcharge-free ATM networks and debit card usage, fewer and fewer people actually choose to go to a physical branch,” Kubiska adds.
While your child may have conquered digital banking, you still may prefer to steer them to a bank with branches to help troubleshoot any customer service issues in person. And though online banking is on the rise, big-brand banks tend to have checking accounts designed for college students.
Wells Fargo offers an Everyday Checking account option and has thousands of branches across the country. There is a $15 service fee, but you can sidestep the charge if direct deposits of $500 or more go into the account every month, if you maintain a minimum daily balance of $1,500 or if the primary account holder is between 17 and 24 years old.
Chase offers a College Checking account for students aged 17 to 24. The account has no monthly service fee while the account holder is in school. New customers can earn $175 by making 10 qualifying transactions within 60 days of opening the checking account. Chase has branches in 48 states and Washington, D.C.
The Bank of America Advantage SafeBalance Banking account option offers no monthly maintenance fee for account holders under the age of 25 and no overdraft fee. You can also bypass the monthly maintenance fee by maintaining a minimum balance of $500 or becoming a member of the Preferred Rewards program. Bank of America has over 3,800 branches in 40 states and Washington, D.C.
Read the Fine Print Before Opening an Account
Teaching college students healthy financial behaviors is the key to ensuring long-term success when it comes to managing money. But the reality is students need guidance. Finding the right bank account and reading all the fine print is one way to ensure they learn how to handle money without getting hit with hefty fees.
“Once you have your account selected, make sure that you use it responsibly,” Kubiska advises college students. “Monitor your balances, review your transactions and consider starting to practice the valuable habit of saving. Savings is often overlooked, but as we all know necessary to avoid running into financial problems in the long term.”
