Whether you’re an international student studying in the US, or a US native student trying to navigate the (often confusing) world of banking to open a student bank account, it can often be difficult to understand a) what you’re being offered and b) what you actually want from a bank account.
For anyone left feeling a bit confused about student banking, you definitely aren’t alone! Read on as we explain what some of the biggest banks in the US are offering students and how you can take advantage of this. Free money, anyone?
Which student bank account do I need?
In the US there are two main types of bank accounts you should know about: the checking account and the savings account.
A checking account is the bank account you’ll be using on a day to day basis. These accounts allow you to access your money whenever you want and provides you with a safe place to store your money. These accounts are ideal for managing your daily expenses and for paying any bills. Some banks have specific checking accounts for students, which we will be exploring in the table below.
A savings account is the bank account you’ll use for longer term deposits. These accounts allow you to gain interest on your savings, so it is worth researching each bank’s savings account interest rate to find the one with the highest rate of interest.
Benefits and extras explained
Banks often try to entice students with a variety of extras and benefits – but what do they mean? Before we start comparing the different student checking accounts on offer in the US, we’ll give you a quick run though of the different perks banks may use to compete.
ATM charges
In the US, banks will often charge you if you take money from another bank’s ATM. As you will see in the table below, some banks will offer an extra benefit by reducing the fees you will be charged for using another bank’s ATM.
Others will compete by offering a large number of ATMs around the country. This is particularly common in larger banks, such as Bank of America and Chase bank, who have a lot of branches.
Cash bonuses
You may see this and think – free money! However, beware that this may come with certain restrictions, such as having to deposit a certain amount in the bank account each month. But in the end, yes, it is free money.
Overdraft protection
When you spend more money than you have in your student bank account, you will go into an overdraft. When this happens, your bank may decline your payment and possibly charge you a non-sufficient funds (NSF) fee. Overdraft protection will stop this happening by allowing your transactions to go through, even if you don’t have the money in at the moment.
Your bank may offer several options: linking an eligible savings account which automatically transfers money over from a savings account to cover the amount, linking a credit card, overdraft line of credit (a line of credit for overdrafts based on your creditworthiness) or even overdraft coverage for one time transactions. However, it’s worth noting that all of these come with potential fees, so bear this in mind before you go on a massive online shopping spree!
Monthly service fees
Monthly service fees are fees that banks charge on a monthly basis to maintain your bank account, and are usually between US$6 and $50 per month, depending on the bank and the type of account you open. These fees can easily be avoided, however. For example, they are often waived as a benefit of student bank accounts and can also often be avoided by having a regular monthly deposit or keeping a certain amount of money in your bank account. Make sure you check your chosen bank to verify their policy on monthly service fees.
Which student bank account is right for me?
In the table below, we compare the top US student checking accounts, made specifically for university students, so you can decide which one is right for you.
Top US Student Checking Accounts |
|||||
|
Bank |
Bank account name |
Monthly service fee |
Minimum initial deposit |
Who is it available to |
Other perks |
|
Bank of America |
No fee for eligible students |
$25 |
Students under 24 and enrolled in school |
Online and mobile banking Debit card lock/unlock $0 Liability guarantee
|
|
|
Chase |
$6 monthly service fee or $0 for 5 years in college |
$25 |
College students aged 17 to 24 years old with proof of student status |
Get $100 when you open a new account Access to 16,000 ATMs and nearly 5,000 branches Chase quickpay with Zelle® (send money in moments) Chase Mobile® app Zero Liability protection |
|
|
Wells Fargo |
$10 monthly service fee or $0 for 17-24 year olds |
$25 |
17- 24 year old college students |
Access to more than 13,000 ATMs Wells Fargo Mobile® app Zero Liability Protection 24/7 Fraud monitoring Chip technology |
|
|
HSBC USA |
No monthly maintenance fee for six years |
$25 |
Over 18 US students and international students studying in the US |
Receive $100 welcome deposit |
|
|
HSBC USA |
No monthly maintenance fee for six years |
$25 |
Available for international students until December 31st 2019 |
30-day sim card with unlimited international calls, 2GB data plan, 200 text messages Access to exclusive offers and services, including travel, transportation and airport services and more No minimum deposit balance required with account opening |
|
|
US Bank |
No monthly maintenance fee (unless you wish to receive paper statements, which cost $42 per month) |
$25 |
US or international students |
Free U.S. Bank ATM transactions No minimum balance No bank fee on first four non-US ATM transactions per statement period Online banking with free credit score access |
|
|
Santander |
No monthly fee for students |
$10 |
Students aged 14-25 |
Apple Pay Reduced ATM fees No incoming wire fees |
|
|
TD Bank |
$15 or $0 if between 17-23 |
$0 |
Students aged 17-23 |
Until December 2nd, 2019, $150 bonus with direct deposits of $500 or more in 60 days Free at TD ATMs Send money with Zelle® |
|
|
Keybank |
$5 or $0 if you make at least 5 posted transactions or deposit at least $200 to waive the monthly maintenance fee. |
$50 |
Students ages 16 to 24 who are high school juniors or seniors or are enrolled in post high school education |
Online banking Zero fee overdraft protection transfers if linked to a KeyBank savings account Financial wellness tool |
|
How to open a bank account
So now you know which bank account is right for you, what you’re probably wondering is how you go about opening your new bank account. Luckily, it’s now easier than ever to open a new bank account, provided you have the correct documents.
You will need several things in order to open your new bank account. These are:
- Your passport
- Student visa (if you’re an international student) as well as your I-94 card and I-20 form
- Debit/Credit card from your own country (if you’re an international student)
- Credit history report
- Proof of enrollment document (acceptance letter)
- A utility bill (not phone) dated less than 3 months from today or any government issued document including your address as well as your last three bank statements
- The amount of money you wish to deposit into your new account
Nearly all banks allow you to apply for a new bank account online in just a few minutes, by simply entering in the information you’re asked for. However, if you this option is not available for you (perhaps if you are an international student trying to open a bank account) you can make an appointment with a bank branch to sort it out in person.
