Checking Accounts
For College Students

college planning articles and tips

One of the first types of financial accounts every college student should open is a checking account. Such accounts allow students to make deposits and withdrawals, by either writing out a check or using an associated debit card. A checking account can set a college student on the road to financial independence and help that student build his credit history.

There are some factors you should consider before opening up a student checking account including the following:

Financial Institution

You can choose a bank or a credit union for your checking account. A number of financial institutions want to win the business of college students, reasoning that if you are satisfied with what they have to offer, then you will stay with them when you need a student loan, a new car and other loans.

Choose a financial institution that is accessible to your school and, if possible, to your home as well. Having access to your funds while at school or at home can make conducting transactions easier. However, with ATMs available all over the place and smart phone scanners making it possible to deposit a check without heading to a bank, its location is not as critical as it once was.

Account Requirements

Checking accounts usually include fees, costs that can drive up your banking expenses quickly. Look for a financial institution that offers free checking for college students. You will have to show your student I.D. to qualify and the bank may require that your family have other accounts open and active to have the monthly fee waived.

Consider that your charges can include a flat monthly maintenance fee, a charge for each time you use an ATM that is not part of the bank's network, and fees for dropping below a minimum balance. Your bank may require you to deposit $100 to open the account, but may also allow you to maintain balances as low as $1.

Online Banking

Virtually every financial institution offers online access to consumer accounts. This access may be offered for free or it could entail yet another fee. Learn what costs, if any, are involved with this option.

Online banking, including the pulling up of your account statements, can be advantageous for families that want to monitor bank accounts collectively without passing checking account statements back and forth. You can track your transactions and link these accounts with credit cards and your student loans. Be on top of your finances and do away with the canceled checks and printed bank statements that are sent to you monthly.

Overdraft Items

The last thing that you ever want to do is to overdraw your checking account. However, mistakes happen and these errors do not have to automatically penalize you. Find a bank or a credit union that offers overdraft protection, where funds can be taken from another account or charged to a credit card if you overdraw your account.

Some financial institutions include overdraft protection automatically, covering your funds for a day or two until you make a deposit. Credit unions are more apt to offer this feature on checks that you have written, on purchases made with a debit card that takes place automatically such as a subscription and for preauthorized withdrawals. It bears repeating that some type of overdraft protection is essential -- you can run up significant fees and your credit can take a hit if you are left unprotected.

The Bottom Line

Opening your own checking account as a college student can teach you financial responsibility. Typically, your bank will ask for a few things from you including your Social Security Number, your driver's license or a student I.D. To qualify, you may need to be 18 years old -- if younger, a parent's signature may be required. Make sure that your account includes an ATM card that can also do duty as a debit card.

Author Information
Kelly Dugan is a professional blogger that enjoys providing consumers with personal finance advice. She writes for Patrick Accounting, a leading accounting firm in Memphis TN.

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