Student Checking Basics

Before You Open a Student Checking Account

Student checking accounts help students start banking. While marketing messages are attractive, student checking accounts are not always the best choice. Find out how student checking works, and what to watch out for.

Student Checking Overview

What is student checking? As you’d guess, they’re targeted towards students - young people who generally:

• Don’t earn a lot of money
• Don’t have existing bank relationships
• Are not experienced with banks
• Have unique spending patterns

Banks offer student checking as a way to earn money and to win long-term customers. Get ‘em while they’re young, as they say.

Benefits of Student Checking

Student checking accounts often offer special perks tailored to students. Some (not all) banks offer the following features with student checking accounts:

• No (or low) minimum balance requirements
• No monthly service fees
• Available to younger customers
• One free overdraft (while you learn to balance your checkbook)
• A trendy gift

You may have other basic checking services as well.

• Checking Account Essentials

Once you graduate or reach a certain age, student checking accounts convert to regular checking accounts.

Pitfalls of Student Checking

It’s nice to offer a student checking account that doesn’t nickel-and-dime young folks who are short on cash. However, student checking has its limitations:

• Only available while you're in school, or for a limited time
• You might only get an ATM card - not a debit card that can be used for purchases
• Student checking accounts convert to more expensive accounts in the future (or require larger balances)
• No interest on your deposits (try a savings account instead)

Student Checking Alternatives

You don’t have to use student checking just because you’re a student. You may be better off using a regular checking account. If you regularly keep money in the bank, have a job and use direct deposit, or already have accounts open, you might not need to use student checking.

You can also check for credit unions associated with your school, or that your parents belong to. Finally, online bank accounts are very competitive, but you may have to be at least 18 years old.

• How Credit Unions Work
• Online Banking 101