If you've shopped around for banks, you know that most students don't fit into the banking industry's traditional customer mold. As a student, you're more likely to maintain low balances and rely on automated teller machines (ATMs) for on-the-fly cash withdrawals. The result can be hefty and unwelcome service fees.
Here are some tips for finding a bank and getting the account that's right for you:
- Consider opening an account where you'll be living. If you're going away to college, leave some time before school starts for comparison shopping among local banks.
- Find a student-friendly bank. Many banks near colleges or universities will offer no-frills, low-cost student accounts to suit your banking needs.
- Look for accounts with low required balances, minimal service charges, unlimited check writing and low-cost access to nearby ATMs.
- Need the convenience of a credit card but not the temptation? Ask whether your bank issues debit cards. Debit cards offer you the purchasing convenience of a credit card, but act like a check so that money for a purchase is automatically withdrawn from your account. This will keep you from running up high-interest balances.
- Study the bank's network of ATMs. Are there ample locations around campus that are connected to this bank? Fees for using machines that don't belong to your bank's network can cost as much as $2 per transaction.
- Consider whether relatives will need to make deposits to your account (e.g. for tuition bills). Does your bank offer a direct-deposit or direct-payment program through an automatic transfer of funds?
- Are there limits on the number of transactions allowed for your account? Know the penalties for exceeding the limits on the account. Banks can charge a $10 fee if you exceed a set number of transactions using a debit or an ATM card.
- Privacy protection. Find out what level of protection the bank offers in the event someone gains unauthorized access to your account. Are you liable for their spending? Does the bank watch accounts for unusual activity?
- Ask questions about overdraft protection and fees for bounced checks.
Once you've opened your account, check out your bank statement and reconcile your balance every month. You'll develop a sense of your typical monthly income and expenditures and stay on top of any errors or new fees that may appear on your statement.
And finally, don't be shy about asking for explanations of fees or charges you don't understand. Your finances are your responsibility. Keep on top of your account to make sure you'll have enough for a rainy day.
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