Compare facts before signing up for student’s checking account

Having a student checking account is one of the initial steps in starting the financial journey. Obtaining a student checking account may seem simple and that is what everyone does. But, selecting an account with proper knowledge and planning helps in the long run. On these accounts, banks usually offer deals such as gift cards, interest free and overdrafts. Choosing an account with such good offers is not bad, but in few cases, it is not good either. Let’s see the various significant factors to compare before selecting a student checking account to grab the most of it.

Steps to follow in picking a student checking account

Special Features: Understand that these accounts are very tempting among various financial products, but only available for students. Since, they are specially designed for students; their main purpose is for deposits and withdrawals. As account holders don’t belong to an employment group, the maintenance fee can be low or banks may offer a zero balance account, too. Upon completing the graduation, the account will be upgraded.

Understanding Factors: Limitations: Remember, there are always limitations on online transactions, ATM transactions, and cheques. Once you cross the limits, you’ll be charged. If you are the one to travel often, select a bank with wide ATM coverage or that gives more number of free ATM transactions from other bank ATMs.

Over-drafting: It is a process, where the bank lets to use more amount than in your account and charges it later on you including interest. For student accounts, few offer zero interest, while few offer low interest rates. Remember to maintain your account at 0% overdraft balance in the upgrading movement. If it gets upgraded with some left over overdraft balance, the interest rates change and trouble you a lot in future.

Online banking and mobile apps: Many are providing these facilities to bank anywhere anytime. Opt a bank with these handy features for smooth and time saving transactions.

Comparing: After understanding the various significant factors, start comparing banks.

Selecting: After comparing, choose an account that fulfills your requirements. For example, a tech savvy student doesn’t need to select a nearby bank to manage and access their account, they can easily access with the mobile app and/or online banking facility provided. So, they have to make sure that they get an account from the bank that provides those facilities.

Signing up for a suitable student checking account plays a significant role in your life and also helps post graduating by aiding you in career planning, setting up the business, or purchasing equipments by taking loans