Finding the best Student Accounts – Benefits and Limitations

When you are looking for a best student accounts, you should consider the following points and understand the benefits and restrictions of this type of account. Usually, a student bank account has many restrictions to deal with. While some restrictions are implemented to protect the bank from dealing with people having no experience, others are a bit outlandish.

Benefits of student bank accounts:

A student bank account has many benefits to count on. Most of these types of accounts are absolutely free of cost. Sometimes, many banks will open a “no fee” checking account. Its perfect for a student to have a checking account without having to worry about any kind of fees if their account is running on a low balance.

Many banks will open accounts with no minimum balance requirements. This is also a plus factor for a student and maintain their accounts smoothly. Now, a student who is only having $100 can also easily open an account. Banks will often offer free wire transfers to attract more number of students. This can be very helpful for the students who receive funds from their homes and there is no fee charged for it. If you are able to maintain your checking account properly, it will boost up your credit ratings as well.

Limitations of student bank accounts :

While there a many benefits to count on, there are few limitations as well. While so many benefits offered to the students, sometimes the bank has to bear some losses because of it. They bear these losses with the hopes that when a student establishes himself in his career and is making good money, they will want the student to stick with them and does not open a different account with another bank.

In many cases, the banks will limit the number of transactions that is for free. It often includes use of the ATMs, withdrawals, and the amount of money that can be deposited to the account. Usually, a student account will also have a lower interest rate attached with it.

Quite often, a bank will open a student account with a parent's signature on it. And in some extreme cases, the parent also must have an account with the same bank, most likely, as a guarantor.