ACCOUNT
Summer is winding down, and thousands of students across the country are headed off overseas to their college for the first time. So, opening a student bank account should be at the top of your financial to-do list. In case you have not done it already, it is pertinent to know the basics of how these student accounts work can help you make the best choice when it comes to deciding where to put your money. Let’s together look into some of the questions that help you clarify doubts related to the topic.
Can a student open a checking account?
Yes, you can set up a checking account, savings account, or one of each, depending on your need. You will want to go with a checking account for students if you plan to use a debit card to make purchases or write cheques to pay your bills. The benefits of using a student checking account include, you don’t have to maintain a set balance each month, and these accounts tend to have fewer fees than a regular checking account, and some accounts are even free.
Suppose you want to stash away extra cash for a big purchase or have a little cushion in case of emergencies, linking a savings account to your student checking account is a smart move. You can set up your account in such a way that you can automatically transfer money from the checking account to your savings account. You can also use your savings account for overdraft protection if you cannot cover a purchase. Also, you should know that you are limited to how many withdrawals you can make from a savings account each month.
Banks which offer free checking accounts for students in Canada and the US.
Best student checking account providing banks in Canada
Scotiabank
- Monthly fee: None
- Monthly debit transactions: Unlimited
- Monthly Interac e-Transfers: Unlimited
- Sign-up bonus:$60 welcome bonus
- Other perks: Free credit score
Simplii – ( Online banking division of CIBC)
- No monthly account fees
- Free and unlimited debit transactions, including bill payments and inter account online transfers
- Free access to 3,400 CIBC ATMs in Canada
- Free personalized cheques
- 0.05% interest on your checking account balance
- Up to $250 sign-up bonus when you meet the eligibility requirements (link includes referral bonus)
- Free mobile cheque deposit
Tangerine bank
- No monthly account fee
- Unlimited debits, bill payments, pre-authorized payments, email money transfers, and Interac e-Transfers
- Earn interest on your chequing account balance
- Free cheques (first cheque book of 50 cheques)
- Access to 3,500 free Scotiabank ATMs in Canada and 44,000 worldwide via Scotiabank’s Global ATM Alliance
- Free mobile cheque deposits
CIBC
- Monthly account fee: None
- Monthly free transactions: Unlimited
- Interac e-Transfers: Free
- Other perks: Free SPC membership
Innovation Credit Union
- $0 monthly account fees
- No minimum balance
- Unlimited free debits and bill payments
- Unlimited free Interac e-Transfers
- Free access to thousands of ATMs across Canada
- Deposit guarantee through the Credit Union Deposit Guarantee Corporation
HSBC Bank
- No monthly fees
- Unlimited checking account transactions
- Free Interac e-Transfers®
- Free mobile cheque deposits
- Free withdrawals at thousands of ATMs across Canada
- Access to mobile and online banking
- Access to an HSBC credit card
Free Student Checking account banks in the USA
Bank of America
- Account name: Bank of America advantage banking
- No fee for eligible students
- Minimum Initial deposit: $25
- Available to students under 24 and enrolled for studies.
- Other perks include Online and mobile banking, debit card lock/unlock $0 liability guarantee.
How does a student checking account work?
A student checking account allows to deposit and use the money in the account. Checking accounts don’t earn any interest, but they do let you write checks against them. It functions the same as the bank account for non-student, but it has low minimum deposit requirements and fewer if any fee is needed.
You can make unlimited transactions using this account, provided you have enough money, unlike a savings account. Many checking accounts come with fees. Some of those fees are waived while in school, such as the low balance fee.
If you are younger than 18, you may need a parent or guardian to open the account with you. This person will be a co-signer to join this account. Even if you are not in school, you can still open a student checking account after your early 20s. Most banks limit student bank accounts to people younger than ages 23 to 26. Above that age, you will need to get a conventional bank account.
You will usually need to make a minimum deposit, although the amount is low for students and young people. After the account is open, you will be given a debit card, which allows you to withdraw cash from the bank or ATM and make purchases.
ID proof is required to open the bank account. If you are trying to open an account online, you may need to upload a picture of the ID. You have a detailed overview of opening a student checking account, getting the documents, and doing the necessities!
