As a soon-to-be college student, you might be so focused on selecting your classes, messaging your new roommate, and buying dorm supplies that you forget about some of the new responsibilities heading your way.
One of the big ones is banking. If you haven’t found a bank and opened a college student bank account yet, you should plan to do both before you head to campus.
Your first instinct may be to open an account with a bank you’re familiar with, or to keep your hometown bank account, but that might not be the right fit for you as a college student. Having a nearby branch may be important if you anticipate needing to do in-person banking. If you don’t use a physical branch now, and don’t see that changing once you’re on campus, then that may be less important. Knowing your goals and what to look for in a bank is the first step in assessing which bank is right for you.
What to look for in a bank
Positive online reviews
Online reviews can help you compare details about different bank options. You can use Google or Yelp to get started. It can be helpful to talk to your peers too. Ask them questions like:
- Who do you bank with?
- What do you like and not like about the bank you’re using?
- What bank branches or ATMs are conveniently located on or near campus?
This initial research can help guide you toward the right college student bank account for you.
Digital capabilities
You do everything else online, so it only makes sense to do your banking online too. Think about whether you want a brick-and-mortar experience, an online experience, or a bit of both—then check out what account tools are available for the banks you’re considering. Here are a couple of things to look for:
- An easy-to-use mobile banking app that allows you to manage your account and freeze your debit card if it’s lost or stolen
- Automatic bill payments
- The ability to deposit checks and transfer funds online
The student lifestyle isn’t always compatible with typical banking hours, which makes it important to find a bank that lets you access your money on your schedule.
FDIC insured
Make sure any bank you choose is FDIC insured. The FDIC (Federal Deposit Insurance Corporation) will have your back in the unlikely event your bank fails. That means you won’t lose your money (up to certain limits). The FDIC insures up to $250,000 per depositor, per insured account for each account ownership category. That should be more than enough for any college student. This is a non-negotiable feature, not just when you’re a student. If a bank is FDIC insured, it should be indicated on their website or at a branch.
What to look for in a checking account
Student checking account options
Some banks offer promotions for students, as well as the option to open a college student bank account. You might snag a welcome bonus, provided you follow certain guidelines. That might include maintaining a minimum balance. While these perks can be enticing, be sure the bank makes sense for your overall financial goals.
One other thing: Just because you’re a student doesn’t necessarily mean you need to open a student checking account. While some student checking accounts have benefits, such as no fees, you may have more options and services with a traditional bank account. That may include cash back rewards or deposit options that give you quicker access to your money. Thinking about your needs can help you assess which type of account is right for you.
No balance minimums
Some banks require you to maintain a minimum balance in your checking account, which is the lowest dollar amount you can have to avoid a fee. If you have trouble maintaining that balance, you’ll be charged—and some banks may even close your account after too many violations.
Some banks offer checking accounts designed for college students. These usually don’t have minimum balance requirements, and they may have additional benefits like overdraft protection. Research your options. Just keep in mind that unexpected costs may come up, which can make maintaining a minimum balance a burden.
No costly fees
Checking accounts can have a variety of fees that can really add up. Fees include charges for monthly account maintenance, ATM withdrawals, overdrafts, transfers, and sometimes even paper statements. You should understand what fees are associated with the accounts you’re considering—and if it’s possible to avoid them.
It can also be helpful to learn what will happen to your account when you graduate from college. If you have a student account, will it change to a traditional checking account? Will that also change the terms of your account, such as fees or minimum balance requirements?
Convenience and location
You may rarely use cash, but having access to it is still important. Some banks charge fees for ATM withdrawals when you use locations that aren’t associated with that bank. Finding a bank with accessible ATMs to your campus, where you travel, and where you spend your school breaks can help you avoid regular (and costly) withdrawal fees. If study abroad plans are in your future, you may also want to compare international transaction fees—and find a bank that has low or no fees if you take out money or use your debit card to make a purchase.
Ultimately, the bank and college student bank account you choose should make your life as simple as possible. Getting recommendations, knowing your needs, and opening an account that makes sense for your college life can make things less stressful and save you money in the long run. Taking the time to do some research before you get to college can be a smart step toward good money habits in the future.
