Best Banking for College Students -

Starting college is exciting for so many reasons, but it’s also a time of big transitions, including setting yourself apart financially from your family.

The best way to do that is by opening an account with a bank that offers great student rates and benefits.

When you’re a college student, it’s important to find the right banking solution to fit your needs. Not all banks are created equal, and some offer better benefits than others.

What is a Student Checking Account?

A student checking account is a type of bank account that offers special features and benefits to college students. Student checking accounts typically have no monthly fees for up to five years, overdraft protection, higher interest rates on savings, and other perks like free ATM withdrawals.

The idea is you have a free checking account while a student and won’t experience monthly fees until after you graduate.

Credit Unions vs. Banks

When it comes to choosing a financial institution, you have two main options: credit unions and banks. Both have their own set of pros and cons, so it’s important to see which one is the best fit for your needs.

Credit unions

Credit unions are non-profit organizations that provide members with access to affordable loans, insurance, and investment products. They often offer lower interest rates and more competitive loan terms than traditional banks.

Pros:

Generally have lower fees than banks
Higher interest rates on savings account
More personalized service

Cons:

Usually have fewer branches than banks
May have fewer ATMs, than banks

Banks

Banks are for-profit institutions that offer similar services as credit unions. Banks tend to be larger and offer more services than credit unions. Additionally, banks often have branches nationwide while credit unions tend to serve a local area.

Pros:

Generally have more branches than credit unions
More ATMs than credit unions
More likely to offer online and mobile banking

Cons:

Higher fees than credit unions
Lower interest rates on savings account
More impersonal service

Which is Better?

It depends on what you need. If you want a low-cost option, then a credit union may be the best choice. However, if you are going to school out of state and need to be able to use ATMs and branches in multiple cities and states, then a bank might be a better fit.

When it comes to choosing a bank, it’s important to see which one is the best fit for your needs. Consider your own personal financial situation and decide which option is right for you.

How to Choose Your Bank

There are several factors to consider when selecting a bank. You’ll want to look at how much money you plan to deposit each month, where you will be studying or living, and whether you prefer a brick-and-mortar location or online banking.

Here are some things to keep in mind when looking for a bank:

Fees

You should always check to make sure there aren’t any hidden fees associated with your new account. Whether that is a monthly maintenance fee, overdraft fee or some other fee, many students checking accounts waive these but not all account offer will.

Location

Where you live can affect how easy it is to get to a branch. Some banks only have a few locations while others have dozens. If you’re planning on moving frequently, this could be an issue.

Online Access

Online banking allows you to manage your finances from anywhere. This makes it easier to stay organized and track spending. Many banks also allow you to transfer funds between different accounts using online transfers.

Mobile App

Mobile apps allow you to view your balance, pay bills, and even transfer funds without having to visit a physical branch.

Savings Account

If you plan on saving money regularly, then a savings account is probably the best option. A savings account offers higher interest rates than most checking accounts, making it a great way to save money.

ATM fees and overdraft charges

When choosing a bank, it’s important to be aware of ATM fees and overdraft charges. Many banks charge ATM fees if you use an ATM that’s not affiliated with the bank. Additionally, many banks charge overdraft fees if you spend more money than you have in your account.

Before signing up for a bank account, be sure to ask about network ATM fees and overdraft charges. That way, you can avoid any hidden fees.

Bank bonuses for new customers

Many banks offer bonuses for new customers. For example, some banks offer cash bonuses when you open a new account. Additionally, many banks offer exclusive discounts and deals for new customers.

Before signing up for a new bank account, be sure to ask about any bonuses or deals that are available. That way, you can get the most out of your new account.

Online-Only Banks for College Students

More and more college students are using online banking. Online banking is a great way to manage your finances, as it’s convenient and easy to use.

When choosing an online bank, be sure to find one that offers all the features you need. For example, some banks offer budgeting tools, while others offer discounts on travel and entertainment.

Additionally, be sure to read the terms and conditions carefully before signing up. Some banks require a minimum balance, while others charge monthly fees.

Here are the best online banks for college Students:

SoFi

With Sofi, you can access your account 24/7 from anywhere. It has no minimum balance requirement, so you don’t have to worry about running out of money.

The app lets you monitor your spending and set budgets. Additionally, you can easily transfer money between your checking and savings accounts.

And unlike many banks, wit SoFi banking you can earn up to 2% APY on your checking account balance.

Features of a SoFi Account

No account fees or minimum opening deposits
No minimum balance required
Up to 2% APY interest earned on both your checking and savings account
Automatic savings ability
Cash back on local retailers (list may vary)
When you open a checking account you automatically get a savings account too
No ATM fees when using one of the 55,000+ in network ATMs
Early paycheck access with direct deposit

Open an Account

Current Bonus Offer: For a limited time, get $25 when you sign up for a SoFi Checking & Savings account and deposit at least $10. Get an additional $300 with qualifying direct deposits.

Chime

Chime is a new way to bank that offers all the features you need, there are no monthly fees or minimum balances required. Plus, you’ll get a free debit card when you sign up.

You can use Chime to send money to friends and family, pay bills, and much more. The app also gives you the opportunity to earn cashback rewards at over 100,000 stores nationwide.

Features of a Chime Account

No account fees or minimum opening deposits
No minimum balance required
Send money to friends and family
Automatic savings ability
Up to 1.5% APY interest earned on you savings account
Mobile first banking
Early paycheck access with direct deposit

Open an Account

Current Bonus Offer: none

Related: Chime Review

Traditional Bank College Checking Accounts

Many banks offer free checking for students with proof of your student status. This can be a great way to avoid monthly fees and keep more money in your pocket.

When choosing a bank, be sure to compare their offers and see which one is the best fit for you.

1. Bank of America Student Checking

Bank of America offers a free checking account for students with proof of enrollment for those under the age of 25.

Features of Bank of America Advantage SafeBalance Banking^®

No monthly service fees
No overdraft fees
Mobile banking

Open an Account

Current Bonus Offer: none

2. Wells Fargo Everyday Checking

Wells Fargo offers their Everyday Checking account without any monthly service fee when you’re between the ages of 17-24. However, it does require a minimum deposit of $25 to open an account.

Features of the Wells Fargo Everyday Checking Account

No required minimum daily balance
Extra day grace period to avoid overdraft fees
Overdraft protection
Mobile banking

Open an account

Current Bonus Offer: none

3. TD Bank Student Checking

Similar to Wells Fargo, TD Bank waves the monthly service fee if you’re college age, in this case 17-23 years old. However unlike Wells Fargo they don’t have a minimum deposit required to open an account.

Features of TD Bank Student Account

No monthly service fees
No minimum balance requirements
Mobile banking
Easily send money to family and friends with Zelle

Open an account

Current Bonus Offer: New TD student checking Customers can earn $100 when you open an account make 15 qualifying transactions with your debit card in 60 days. (offer expires Oct. 31, 2022)

Additional Banks that Offer Student Checking Accounts

The following are other banks that offer student accounts, however because they don’t offer the similar benefits of the ones already mentioned or anything that makes them stand out, we’ve not included them here. However, you will see them mentioned in similar articles on other sites:

U.S. Bank
Ally Bank
Discover Cash Back Debit (awesome, but not currently available)

When you’re choosing a bank, be sure to compare their offers and see which one is the best fit for you. There are many great options out there, so take your time and find the right one for you.

The Bottom Line

There are many great options available for banking for college students. If you’re in college and planning to start saving up money for your future, then you need to make sure that you are banking wisely.

There are many different types of banks out there, and each has its own pros and cons. Be sure to find one that offers all the features you need and that fits your budget. With so many great choices out there, you’re sure to find the perfect bank for you.

Frequently Asked Questions

Still have questions about the best banking options for college students? We’ve answered the most common questions below.

Should college students have their own bank account?

There are many benefits to having your own bank account as a college student. For example, it can help you build credit and manage your finances. Additionally, many banks offer exclusive discounts and deals for college students.

Is online banking safe?

Yes, online banking is safe so long as you choose a reputable FDIC insured bank.

Should a student get a credit card or debit card?

There are pros and cons to both credit cards and debit cards. Credit cards can help you build credit, but they also have high-interest rates and it can be easy to end up in debt.

Debit cards are a great way to manage your finances, but they don’t offer the same protections as credit cards. Ultimately it’s up to the individual student to decide which is right for them.

What is the best bank for students to open an account?

There are many great banks for students to open an account with. Some of the best options include SoFi, Chime, and Bank of America. Each bank offers different features and benefits, so be sure to compare them before choosing one.

What Students Need In A Checking Account

When choosing a checking account for college students, there are several factors to consider. For example, you’ll want to find an account with no monthly fees and low or no minimum balance requirements, and a wide network of ATMs to avoid fees.

If possible, you’ll want to find an account that pays interest and connects easily with savings. Finally, you’ll want to find an account that has a mobile app so you can easily manage your finances on the go.

What Is the Minimum Age Requirement for Banks for Students?

The minimum age requirement for most banks is 18. However, some banks have special programs for students that are 17.

How Do I Open A Bank Account If I’m A Student?

Opening a bank account as a student is typically the same process as opening a regular bank account. However, some banks may have special requirements or documents that students need to provide.

For example, Chase Bank requires students to provide a valid photo ID and proof of enrollment. While other banks require those opening an account at age 17 go to a local branch in person to open the account, while 18+ can open an account online.

How Do I Find The Best Bank Deals For Students?

To find the best bank deals for students, you’ll want to compare different banks and their offers. Many banks offer exclusive discounts and deals for college students.

For example, TD Bank offers a $100 cash bonus when you open a new checking account and meet certain requirements.

Can Banks for Students Help With Financial Education?

Yes, banks for students can help with financial education. Many banks offer financial literacy programs and resources for college students.

For example, Chase Bank offers a Financial Goals Hub, while SoFi offers a Learn platform, both provide resources and information on topics like budgeting, credit, and saving for retirement.

What Are The Disadvantages Of Having A Bank Account As A College Student?

Primarily, you may not have access to all of the features and benefits that a regular bank account offers. However, the advantages of having a student bank account (no fees or minimums) usually outweigh the disadvantages.

What is needed to open a student bank account?

In order to open a student bank account, you will typically need to provide a valid photo ID and proof of enrollment. Additionally, some banks may require a Social Security number. Some banks also have special requirements for students under 18.

Is it worth getting a student bank account?

YES! It is definitely worth getting a student bank account. There are many benefits to having a student bank account. For example, you’ll get a headstart on building your credit. Additionally, you may be able to take advantage of special programs designed to help with financial education. Finally, you’ll have an easier time managing your finances with a student bank account.

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

There are a few key differences between a student checking account and a regular checking account. For example, student checking accounts often have no monthly fees and offer exclusive discounts and deals.

Additionally, many student checking accounts come with special features like financial literacy resources and mobile banking apps. Finally, student checking accounts typically have lower minimum balance requirements than regular checking accounts.