Tips To Evaluate the Best Checking Account For Students
Opening a checking account allows you to easily deposit a check you receive, take out cash with your debit card for daily transactions or set up direct deposit to receive your paychecks. Unfortunately, many financial institutions charge maintenance fees that can cost you up to $15 a month if you don’t meet their requirements. You may be able to waive the monthly fee if you meet certain requirements, such as maintaining a minimum balance or setting up direct deposit.
If you spend more than the amount in your account, you may be hit with a HUGE overdraft fee averaging around $30. This can be avoided if you enroll in overdraft protection, which will decline transactions greater than your checking account balance or transfer extra funds from a linked savings account.
Checking accounts should not be used for long-term goals, such as saving for a house, since you generally earn a low interest rate. However, some banks may provide a bonus or the chance to earn slightly more interest if you keep more money in your account. Since checking accounts have low interest rates averaging .04%, it’s better to put large amounts of money in savings accounts with interest rates at or over 1%.
When selecting which is the best checking account for you, consider the following criteria:
- No monthly maintenance fee
- No minimum balance requirement
- Low initial deposit of $0 to $50
- Available nationwide
- Physical branch locations and/or online accessibility
- Large ATM network
- FDIC or NCUA insured up to $250,000
Technology can help you stay on top of your budget and simplify banking if you can’t easily drive to a branch or if you keep a full schedule. As you do most everything on your phone. Banking can be no different. Most banks and credit unions offer an app for your phone from which you can check your balances, pay bills, move money between accounts, receive text alerts to help prevent overdraft charges, and even deposit checks by taking and uploading a photo.
If you need more information to help you avoid making mistakes that can negatively impact your credit score and financial health, read the following article https://ioscholarships.com/3-tips-for-helping-students-use-their-credit-cards-wisely/