How necessary is a checking account for a college student?
Key points:
- Managing money is a crucial skill, so the earlier you can master that skill, the better off you’ll be.
- Having a checking account gives college students valuable money-management experience.
- Fees, minimum balances and ATM availability are just a few of the factors to consider when looking to open a new checking account.
Managing money is a critical life skill, so the earlier everyone can master this skill, the better. That’s why, although not technically necessary, having a checking account gives college students valuable money-management experience. Whether you’re a college student or the parent of a college student, here are some factors to consider when shopping around for the best bank accounts for recent graduates.
Fees
Checking accounts may include fees for things like account maintenance, overdrafts, ATM withdrawals, transfers, nonsufficient funds and paper statements vs. online documents. Look for accounts with low fees or that waive these fees altogether.
Minimum balance
College student budgets can be tight, so look for an account that has no minimum balance or one low enough to meet your budget.
Mobile banking
Try to find a credit union or bank that offers a user-friendly mobile banking app where you can handle all your checking account tasks on the go.
ATM availability
If you use ATMs often, choose a credit union or bank that has enough ATMs near your school, or one that will reimburse ATM fees.
Federally insured
Make sure the credit union or bank you choose is federally insured. Credit union accounts are insured up to $250,000 by the National Credit Union Share Insurance Fund while bank accounts are insured for the same amount by the Federal Deposit Insurance Corporation (FDIC).
Locations
If it’s important for you to conduct account transactions in person, look for a credit union or bank that has a branch near your school.
Learn more about checking accounts for college students.