Bank accounts are not just for adults, and even students can have them. In fact, students should have their own bank accounts to learn to manage their finances independently. Let’s look at the steps to open a bank account for students, which comes with numerous benefits when you are in college:
Choose the account type
The first step to open a bank account for students is to choose the right type of account between a savings and a checking account.
A checking account can be used to transact frequently. You can use it to pay fees, issue checks, withdraw money from ATMs, use a card, and deposit money. Checking accounts require the maintenance of a minimum balance, and they pay some interest on the money in the accounts.
A savings account, on the other hand, is suitable if you don’t use the account frequently and want to save money. You will get a higher rate of interest on the funds in a savings account.
Select a bank
You need to decide which bank to open your account with. Keep the following tips in mind while choosing a bank to open a student account with:
- Choose a bank located near your place of study so that it is convenient in case you need to visit the branch.
- Ensure that ATMs of the bank you choose are available near your place of study so that you can easily carry out regular transactions. Also, the bank should give you an ATM card that you can use to make transactions, including online ones.
- The account should have online banking so that you can ask your parents or anyone else to can deposit money remotely when required.
- Check the interest rate paid, the transaction charges levied, the minimum number of withdrawals allowed per month, and the minimum balance to be maintained. These factors should help you decide which bank to open an account with.
Online or in person
Some banks allow you to open the account online, which is convenient. However, check whether there are any differences in the services offered if you do it online. You may also want to visit the bank in person the first time to ensure that everything goes smoothly.
Follow the procedure
Each bank has its own procedure to open a student account. Here are the common steps to open a bank account for students:
- Fill a form with all your details.
- Submit documents like an ID card (college ID should do), address proof, and college/university address
- Submit a letter from the college/university if required
- If the student is not 18, a parent may need to be present to open the account, and a copy of the parent’s ID would be needed.
- Once the account is opened, deposit some money into it.
- You will be issued an ATM card and the password to operate the account online.