Better Money Management with Student Bank Accounts

Student Bank Accounts are accounts designed for college students. This is a low cost way for college students to do their banking, notes Carlos Hank Rhon. As opposed to traditional checking accounts, there is no fee if the balance falls below the minimum.

Individuals must be at least 18 to open a student checking account. In the event that a person has not yet reached the age of 18, this requirement can be waived if the student can produce proof of enrollment such as school identification or a tuition bill. Students can enroll in online banking where they can access their account, transfer funds and pay bills all for free.

Student Bank Accounts also come with a debit card free of charge. These debit cards have a spending limit on them in order to avoid overspending. Using the banks ATM machine is free, but there may be a fee charged if using an ATM machine at a different bank. Thos banks that also offer online banking will help your teen gain fiscal management skills.

Student checking accounts are designed to be less intense than traditional bank accounts. With traditional bank accounts, the account holder has the option of “opting in” and allowing overdraft purchases to be accepted, but student checking accounts do not offer this. If a student tried to make a transaction and the money is not in the account, the transaction is denied.

Student Bank Accounts are normally the first experience a young adult has with managing money and banks understand this. That is why this type of account is a little more restrictive than other types of checking accounts.

 

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