If you start university this year, you will almost certainly want to open a student bank account. At this point, you’re probably asking how student bank accounts differ from conventional bank accounts, how to tell whether you have the best student bank account, what you need to open an account, and a variety of other questions.

We’ll explain how this thing works and what you should keep in mind when making your decision.

What distinguishes a student account from a standard account?

A student bank account is a sort of standard account that has been tailored for students. Students are primarily people who have more cash coming in than going out; thus, these accounts are meant to assist with these cash-in transactions. They generally work in the same way as a standard bank account but with additional benefits. These benefits may include:

l No monthly fees: many student bank accounts  do not have monthly expenses, such as maintenance fees

l No overdraft fees:  some banks don’t charge overdraft fees if a student’s checking account is overdrawn.

l No minimum balance requirement: Some checking or savings accounts demand account holders to maintain a minimum level to avoid fees; this is not usually the case with student bank accounts.

l Debit cards: some banks provide customers with a debit card for ATM, in-person, and online transactions.

l Small initial deposit

l Low or no ATM fees

l Online banking and mobile apps

 These accounts may include additional tools and requirements that will be useful as you learn to manage your money on your own.

How To Choose a Student Bank Account

Selecting a good student bank account can be a stressful time in your life, but it will be less stressful if you know your spending habits and what you need and have done thorough research. When selecting one, it is important to select the one that will best meet your unique demands, so ask yourself what those are.

When choosing a bank account as a student, you need to consider a lot of factors. Low fees, access to mobile banking, overdraft protection, safety and security, and perks should be the main factors that help you determine what kind of bank account you get. 

Another thing that you should think of is what kind of credit-building tools these accounts offer. It’s never soon enough to start building your credit. If you ever need a loan from the bank, a lease for a car, or anything else financially related, you will be happy that you started building up your score early. Just make sure you make a positive change by paying your dues on time. 

What are some good options in the US?

1. Chase Bank College Checking Account

As one of the biggest banks in the world, Chase offers some great accounts for students that lead them into the bank ecosystem for close to no fees!

This account is reserved for students from 17 to 24 years of age. What makes it unique is that there is no monthly service fee until after you graduate (or up to 5 years after opening the account). It offers a $100 bonus for signing on, but you will need to make a few transactions to qualify for this (depositing, purchasing, paying bills, etc.).

There is no minimal deposit or interest, but there is an overdraft fee that is among the highest for student accounts, so keep that in mind!

2. Bank of America Advantage Banking

BoA is the choice of many adults in the US, and their student accounts are trying to grow their user base even further with lucrative offers. 

This account doesn’t charge you anything for maintenance if you are under 25 and are enrolled in some sort of education. They have interesting features such as “Keep the Change,” which rounds up your debit spending to the nearest dollar and deposits the rest into a savings account. We help you save by adding small amounts to your accounts with every transaction. 

Some things can be considered cons. Such as a minimum deposit of $25 or $100, depending on account features, and high maintenance fees after graduating or reaching the age of 25, if you stick with the same account. 

3. Capital One MONEY Account

This account is for younger students who make their account before turning 18. You can make a MONEY teen account as early as 8 years old. This account has no monthly fees or minimum balances, you get a free debit card, and holders of this account receive a solid 0.10% APY (annual percentage yield) on all balances, making this a good way to save your money as well!

It’s important to note that for this account, your parents are joint owners, and they can see your balance, spending, and savings. There is even a feature for them to add a monthly allowance to your account, which makes it great for under-18s but not ideal for adult holders. 

After you turn 18, you can continue using the account, though, due to some limitations, most users decide to switch to a “360 checking account” instead.

4. Discover Cashback Debit Accounts

This account isn’t specific to students but to anyone 18 or older who wants an account with no excessive fees. This account has no fees, minimum deposits, overdraft protection, or ATM fees. It also offers an incredible 1% cashback (up to $360/yr).

There are many other features and perks that account holders enjoy, but a drawback to all of them is that Discover doesn’t offer physical branches in the US, so all of your requests and support are done online, which sometimes takes a bit longer.

What are some good options in Canada?

1. Scotiabank Student Banking Plan

Scotiabank offers its Student Banking Advantage plan, which provides students with unlimited debit transactions and Interac e-Transfers while also increasing their purchasing power by allowing them to earn Scotia’s popular Scene+ points, which they can redeem for groceries, travel, and other items. Furthermore, the Scotiabank student bank account comes with a welcome incentive of $100 for new applications and wonderful news for those who can bundle Scotiabank services: if you use this plan, a Scene+ debit card, and a Momentum Plus savings account, the huge benefits can be worth up to $360. 

2. RBC Banking for Students

RBC competes with Scotiabank by offering a student-focused account with no monthly fees, unlimited transactions, and no costs for accessing out-of-network ATMs. Those interested in a student credit card can receive a rebate of up to $48, and students can earn Avion points when they use their debit card. 

Conclusion

There is no single universal answer to what is the best bank for students or the best student account; it depends on what you require, where you live, and what features and advantages you demand in a bank account. In general, you should look for a low-cost account with features such as earning interest and a debit card that allows you to deposit and spend money whenever you want.

When choosing the finest student bank account, keep long-term goals in mind and look for a bank that works in the best interests of students, such as Chase, Bank of America, or Scotiabank. However, because many of the student programs are comparable among the major banks, there is no such thing as a “wrong” choice.