As a college student, you must be mindful of your spending habits. A good bank account can help you do this and ensure that you have money left over at the end of each month. There are many different factors to consider when choosing a student bank account, like its costs and features. Below we’ll cover some key features that make for a good students bank account:
No or low monthly fee
Why should you pay for your account if you don’t use it? That’s why good bank accounts for college students don’t charge fees. If there is no activity on your account, it shouldn’t be charged anything. If there is activity but not enough to cover the costs of running the bank, they should be able to offer some sort of discount or incentive for increased usage.
Many banks provide student accounts with free overdraft protection or insurance policies on their credit cards so that if you make a mistake in spending and exceed your balance, the bank will still ensure that you aren’t left out of pocket for having made an error in judgment when spending money. As per the experts at SoFi, “Online-only banks can also serve college students well. While they don’t have branches you can visit in person, they often partner with large ATM networks, so you can access your cash easily.”
Linked savings account
You should set up a linked savings account connected to your checking account. This way, you have the option of automatically transferring funds from checking into savings when they are available. Doing this will motivate you to save since you can see the money in your savings account and know it’s there for emergencies or future purchases. Plus, you can transfer money back from savings to checking at any time by simply transferring funds online or requesting an ATM withdrawal for cash withdrawals.
Low minimum opening balance
A low minimum opening balance is important because you don’t have to make a large deposit to open an account. This is particularly useful if you’re just starting college or university, as it’s likely that your funds will be limited at first.
If you choose a bank account with a high minimum balance requirement, this could cause problems for students who need access to their money on short notice.
Rewards and discounts
The rewards program or discount can have a variety of benefits. For example, if you are a student and you regularly attend sporting events, the rewards program might offer discounts on tickets to help make it easier for you to attend games. Another example could be if you often eat out at restaurants with your friends: the discount may apply when buying food or drinks at specific establishments.
Whether they are rewards or discounts, these types of programs can really improve your financial situation in many ways by helping you save money and feel more comfortable about spending it.
If you are a student looking for a bank account, the first thing to consider is what you will use your bank for. It is important to consider how much money you expect to have in your account and whether or not it will be used as a savings account too.