kids savings accounts

Student Bank Accounts

Posted on 25. Jan, 2011 by admin in Internet Savings Accounts, Kids Savings Accounts, Savings Accounts, Student Savings Accounts

Many banks often offer special accounts for students who are in college; they offer a way for students to begin to learn to manage their own money, so they can become financially independent.

Student checking accounts are usually “free” checking accounts, with no fees associated with them, no minimum balance, a free ATM or check card with the account, free ATM usage act ATMs that belong to a particular financial institution, free online checking capabilities, free direct deposit, and free online bill paying services.

Why are student bank accounts beneficial?

Student bank accounts are beneficial for students who are just learning how to manage their money because these accounts are generally free, for all intents and purposes. In general, institutions will still charge students when they ordered checks, and will usually have overdraft charges associated with these accounts as well. In other words, students will have to pay overdraft charges if they “bounce” checks or otherwise overdraw their accounts, in that they spend more than the account actually contains.

Where can students find student bank accounts?

Many if not most banks these days offer student checking accounts and/or kids savings accounts. Students who have just arrived at college should do a search online for local banks in their area. Oftentimes, branches actually advertise that they cater to students, as well.

Some things to keep in mind

Although student bank accounts do indeed offer students services for “free” that usually cost money (like free ATM usage, free checking and savings accounts, and so on), they aren’t a free ride. They are a means for students to learn how to manage money and become financially responsible. Students should remember that they can only spend the amount of money that’s actually IN a checking or savings account. Any ATM or check cards, too, are usually tied to checking accounts. That is, a check card is NOT a credit card. Credit cards bill you at the end of every month (usually in 30 days cycles) for what you’ve spent, and charge interest on unpaid balances. Check cards, on the other hand, are debit cards; the money spent on a debit card comes directly out of a checking or savings account. Therefore, students have to be careful that they treat a debit card exactly as they do their checkbooks. They can only spend the amount of money in the checking or child saving account; if they don’t limit spending to what’s in the account at any given time, they’ll likely be charged overdraft charges.

Once out of school

Although student checking accounts are generally not available to students once they’re out of school, most banks do still offer free or low-cost services to those who want them. Many banks, for example, offer free checking accounts as long as patrons utilize direct deposit, wherein paycheck amounts are deposited directly to checking accounts, instead of having patrons cash physical paychecks. Direct deposit other similar services actually save banks money, since they don’t have to process checks when they do so. Therefore, banks often “return the favor” in many cases by offering free checking and other “free” services in exchange for making things easier (and cheaper) for them, too.

Related posts:

1. Let Kids Learn More Money Lessons with Their Own Bank Account

Tags: kids bank accounts, Student Bank Account, Student Bank Accounts, student checking account, student checking accounts