Students who are in college may often turn to checking accounts as ways to not only make certain purchases but as a method that will allow their parents to help contribute to their financial needs that go beyond major expenses like tuition and fees, as many college students have opened a free checking account to help them not only better manage money without the fear of running into a sizable amount of debt, which can come if credit cards are used by students but there are also some parents who are in a position where they can better help their students by putting money in their checking account and allowing the students to use their debit card. However, questions over whether a student checking account will be best to have often surrounded this particular type of banking account as there are some students who may look for online checking account options that may offer a higher interest rate while they are in school, or generally for purposes of their banking needs.
Understandably, parents and students who are in a position where a checking account will help better manage expenses and certain costs will want to find an affordable checking account, which is why free checking for college students has been so popular, but when it comes to getting these high interest checking accounts there may be restrictions or requirements that must be met that are not advantageous for a student. Yet, this can also be said of free student checking accounts as there are some who may penalize customers if they make certain types of withdrawals, exceed a certain number of transfers to or from their account each month, or of course there are fees that are usually associated with using an ATM that is not within the bank’s network, as just a few examples.
What comes down to when students and parents are looking into a checking account is what will an account entail, how often or for what purposes will a student use their checking account or debit card, and what costs will come with this particular type of account. Again, some students are looking at high interest checking account as, for those who may make deposits into this account but may not have a great deal of activity, this could work for or against them depending on their bank and requirements to keep a high rate. Obviously, some banks will require that direct deposits be made into accounts, a certain number of transactions with a debit card each month, or other requirements like high fees may be associated with both free checking accounts or high interest checking accounts and obviously not to the students advantage.
While there are many arguments that center around the fact that a checking account debit card can be a much safer way to finance purchases than a credit card, as student credit cards could potentially allow the cardholder to spend well beyond their means to repay, advisers who are seeing students look into these options of getting a debit card with a checking account are, once again, stressing the importance of looking at fees, what will be required if a certain rate is offered, and students do need to remember that just because a checking account is said to be free doesn’t mean that there may not be costs associated with certain transactions or use of a debit card, and understanding this is going to be beneficial well beforehand when it comes to helping students choose the best account for their needs.