The newly found freedom of getting into college also brings days of financial independence for many young people. While some of the students may already have bank accounts, most of the students would have to manage their finances for the first time in life. Parents may worry about their children making the wrong decisions. By reading the fine print, students can avoid making fatal financial mistakes.
There are Bank promotions that are specifically marketed towards these young college students. The banks are aware that most young people are financially ignorant. Some colleges have agreements with certain banks that allow for the banks to promote themselves. Students can receive information about the banking options they have on campus before they even arrive! The banks will send the information via the mail. These campuses serve as a great opportunity for banks to market themselves to students. Almost 40% of the total students sign up for these college-sponsored accounts, according to research.
Check the fees
The fees that are charged for these bank promotions vary significantly from each other, so instead of just automatically choosing the college-sponsored bank account, you must investigate the fees associated with them. Because the account is offered to you with your college/school logo does not mean that you should choose it immediately.
However, it can be significantly hard to gather the data associated with banking fees for college-sponsored banks. You can compare the institutions that have displayed the data on their website, but there are still no regulations, and some information may be missing or not mentioned. Usually, you would only know about the banking details of your specific bank through bank promotions. Also, there are some institutions whose sponsored accounts do not charge any fees.
Focus on free
Most students do not have extra spending money. Students need to be conscious of the charges and limit their spending. Look for bank accounts with minimum balance requirements, no maintenance fees, free ATM services, free debit cards, and low transferring fees. Checking accounts usually have minimum fees as it is best used for keeping the money safe for short time spans.
Weigh ATM convenience instead of Bank promotions
The life of a college student is hectic and full of chores. You may be taking classes in the morning and working in the evening to pay the dues. Between this, a student has little time to stray away from the plan. Therefore, instead of focusing on promotions offered by the banks at your college, choose a checking account with no ATM fees because you would frequently need to withdraw money. Also, the choice of the account should be based on the location. Most of the national banks have various branches across the country but ensure that there is one in close proximity to your location.
Overdraft fees on debit cards
Instead of being lured in by bank promotions, check for any overdraft fees using your debit cards. Accounts that are created through federal student aid usually do not have any overdraft fees. However, other accounts may charge you around $32 for not having enough credit for a purchase. Also, check for fees that are associated with your debit card when you make a purchase above a certain amount. There may be any hidden charges that you are not aware of.
Student accounts usually mature after a certain age and turn into a standard account. Knowing the timeline and restrictions on the account beforehand can save you from the potential unwanted situation. Standard accounts also come in different varieties, and bank promotions usually only focus on the ones with high fees. Do your own research, and compare the options you have before deciding. Overdraft protection is something you should stay away from. You may be inclined to use the protection, but it typically comes with a high fee. You are better off getting embarrassed for a declined transaction rather than getting charged for overdraft protection.
Focus on App instead of Bank promotions
With the ease of technology, it has become easier to keep tabs on everything, and your bank account is no different. Many reputable banks offer phone apps, which can be used to keep track of your financial status and set certain limitations on the account for your own benefit.
Following these tips will ensure that you are making a smart and informative decision right from the start of your financial journey.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.