Best Banks for College Students

How do you qualify for a student checking account?

Each bank has different requirements to qualify for a student account but age and school enrollment are the big factors.

To qualify for a student checking account, you need to be under 23 to 26 and enrolled in an educational or vocational program. The minimum age ranges from 13 to 17.

For students under 18, most banks require a parent, guardian, or custodian to be a cosigner to open a student account.

Students over the maximum age allowed by the bank need to open a regular checking account.

What’s the difference between a student checking account and a regular checking account?

Compared to regular checking accounts, student accounts often have lower fees and additional benefits. Banks know that students are less likely to have a full-time job, have minimal assets, and are beginning to learn money management. As a result, banks offer accounts that are more affordable for students.

As long as the account owner qualifies as a student, banks often:

• Waive monthly maintenance fees
• Have lower minimum requirements
• Offer free ATM withdrawals

Many banks also offer educational tools for students to learn more about money skills.

What’s the difference between a checking and savings account?

A checking account is for daily use and for spending money. Checking accounts are used for regular transactions, paying bills, and ATM withdrawals.

A savings account is for saving and growing money. Savings accounts have higher interest rates. As a result, they are better for storing money. Most banks limit the number of withdrawals a person can make each month from their savings accounts — but not for checking accounts. Another difference between a checking and savings accounts is that savings accounts often don’t have debit cards or checks.

Read More: Checking Account vs. Savings Account: Which Should You Pick?

What’s the difference between an account number and routing number?

Banks assign an account number to each type of bank account. The account number is a set of digits that identifies a specific account. If a student has a checking, a savings, a money market, and a certificate of deposit account (CD), they get four different account numbers.

A routing number is a nine-digit code that identifies a specific bank or financial institution. Some banks have different routing numbers based on geographic location. When sending money from one bank to another, the routing number tells you what bank the money is going to and the account number tells you what account at the bank it is being sent to.

Students need both their routing and account numbers to:

• Set up direct deposit with their employers
• Send or receive a wire transfer
• Do other types of financial transactions

You can find both numbers on your checks, in your online account, or by contacting your bank.

What fees do I need to watch out for?

Even with student checking accounts, students may have to pay other fees. Before opening a checking account, familiarize yourself with the fees below. Learning when and why banks charge these fees will help you get the most benefit from your checking account. It can also help you avoid checking account fees.

Monthly maintenance fee

This fee is also known as a service change. It is a recurring checking account charge that often ranges from $5 to $15 per month. Many banks waive this fee for student accounts. Requirements to waive are often based on things like:

• Minimum ongoing deposit amount
• Minimum number of account transactions
• Setting up direct deposit

Overdraft fees

People who spend more than they have in their checking account can be charged an overdraft fee. A typical overdraft fee is $35 per incident. In addition, banks charge a sustained overdraft fee if the checking account remains negative. Some banks have a maximum number of charges they charge per day.

Some banks offer overdraft protection. This allows customers to link another bank account, a line of credit, or a credit card to their checking account. In case of an overdraft, the negative balance will be charged against their other account. Some banks charge a fee for overdraft protection.

ATM fees

Withdrawing money from an out-of-network ATM machine costs a customer anywhere from $2 to $5 per withdrawal. ATM fees can include a fee the bank charges the customer and the fee from the ATM’s owner.

Many banks have a network of ATMs that offer free cash withdrawals. For example, Capital One has more than 70,000 fee-free in-network ATMs. Bank of America has about 16,000. Some banks reimburse ATM fees up to a certain amount per statement cycle.

Returned item fees

Also known as a non-sufficient fund (NSF) fee, this fee is assessed by the bank if a customer writes a check and there isn’t enough money in their account to pay for it.

The check will “bounce” and be returned to the customer. Banks often charge a bounced-check fee in addition to overdraft fees. NSF fees range anywhere from $20 to $40 dollars.

Paper statement fees

Some banks charge anywhere from $1 to $5 dollars per paper statement for the printing and mailing costs. Many banks waive this charge if you opt in for electronic statements.

Foreign transaction fees

Students who use their debit card outside of the U.S. for purchases or to withdraw cash (or on some purchases made in foreign currencies from within the U.S.) have to pay extra charges. These fees range anywhere from 1% to 3% of the total purchase amount. In addition to the foreign transaction fee, banks may charge an international ATM fee. This fee is typically a flat fee of up to $5 dollars per cash withdrawal.

Learn more: What Are Foreign Transaction Fees?

Account closure fee

Some banks charge up to $25 dollars for closing an account. Most banks charge early account closure fees if opened within 90 to 180 days of opening an account. This is to prevent customers from opening an account to receive any special perks and then immediately closing them afterward.

Tips for picking the best student bank account for you

Finding the right checking account is important since most people use their checking account for everyday banking. You want to find a bank that best suits your needs, is easy to access, has low fees, and can help meet your financial goals.

Here are the factors to consider when choosing the best student checking account for you:

• Account type
• Bank type
• Fees
• Minimum balance requirements
• Digital banking tools
• Customer service
• ATM network or fee reimbursements
• Other perks like high APY or cash back rewards

FDIC or NCUA insurance

Check if the bank or credit union you like is insured by the FDIC or NCUA. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to $250,000. That means if your bank goes under for some reason, your money is protected by the federal government up to that limit.

Read more: What Is FDIC Insurance?

The National Credit Union Administration (NCUA) is the FDIC equivalent for credit unions. This insurance protects and reimburses students up to $250,000 if the credit union fails. Ensure that your student checking account is insured by either agency or for state credit unions, insured by their state agency.