College is a time of significant change and independence. You’re no longer under your parents’ roof, eating their cooking and following their rules. So why should you have to use a traditional student checking account? In this guide, you’ll explore the many benefits of opening up a college checking account for students so you can decide if it’s right for you!
What Is a Checking Account for College Goers?
A checking account is a type of bank account that allows you to easily make deposits and withdrawals, pay bills online, and write checks.
It’s a good idea to open a checking account when you start college because it will make it easier for you to pay for things like books and tuition. A checking account can feel overwhelming at first, but once you know how they work, they’re actually pretty easy to use!
How to Open a Checking Account for College Students
First things first: it’s important to note that you can be someone other than a student in order to open a checking account. Anyone can have their own bank account, but college students are often the most frequent users of these accounts because they need one for school purposes (for example, paying tuition).
Here’s how you get started:
- You’ll need to provide your name and address, proof of age (if you’re under 18), and any other required forms. Depending on where you open an account and what type of account it is (savings vs. checking), some banks may require additional documents from you (like proof of income). If all goes well, then they’ll give you access to the funds within 24 hours or less!
Advantages of a Checking Account for College Students
As SoFi advisors say, “Banking for you —and future you too.”
Here are some of the advantages of having a checking account if you’re in college:
- A checking account is more secure than carrying cash around campus or withdrawing from an ATM (which may charge a fee). If your wallet gets lost or stolen, there’s no need to worry about losing all your money!
- It’s easy to transfer funds between linked accounts like savings and investment accounts. This is helpful when managing budgets or saving up for something big like a car down payment or vacation abroad.
Disadvantages of a Checking Account for College Students
While there are a lot of advantages to having a checking account, there are also some disadvantages. Some of them include:
- Convenience fees. These are the fees charged for certain services, such as using an out-of-network ATM and receiving paper statements by mail instead of online.
- Overdraft fees. If you write a check and don’t have enough money to cover it, your bank may allow you to withdraw cash from another account or transfer funds from another source (like your savings) to cover the check.
- Minimum balance requirements: Some checking accounts require you to maintain a minimum monthly balance, which could mean paying several hundred dollars each year.
In conclusion, a checking account for college students is an excellent way to help your child manage their finances while in school. It’s also an excellent opportunity to teach them about banking and money management skills that will last them their entire life.