A Guide to Banking for Students

A bank serves as a financial institution, providing complex financial services, right from the maintenance of deposits to extending credit. A little guidance and initiative help students to improve their personal credit record.

Banking offers the convenience of not having to handle large sums of money, thereby minimizing the chances of theft. Moreover, most of the financial institutions enable you to earn interest on your money deposited in a particular account.

There are a number of bank accounts and financial plans that are specifically designed for students. Today, students handle allowances that take care of all their financial requirements and if judiciously saved, could save them from debt in the future too. It is essential for students to select the right bank.

Tips to select the right bank for students:

The following tips would help students in selecting the best bank for themselves:

Services offered: It is essential to opt for a bank that meets your specific requirements and serves you efficiently.
Convenience: Before selecting a bank, you should check the location, working hours and your accessibility.
Insured federally: Always look for a bank that is insured. The Federal Deposit Insurance Corporation or FDCI insures most banks. It indicates that even if the bank goes bankrupt, you would get your money back, up to $100,000.
Bank fees: There are bank fees associated with the bank accounts. They charge fees on dropping below the minimum balance, overdraft protection, issue of checks and many more.

Requirements in setting up your banking services:

Financial institutions require you to submit certain important documents, for opening a bank account. They are as follows:

Your social security number
A photo ID, like a driver’s license, passport or student ID
Proof of address
Your signature on a card or form that is maintained by the bank

Essential banking services for students are as follows:

There are student and graduate accounts, with a number of attractive fringe benefits, designed especially for students. Students struggling to excel in their chosen fields usually cannot afford to pay back the money they borrow, within the expected time frame. Banks offer them the facility of special accounts, designed to increase their loyalty to the financial institution in good time.

Some of the essential considerations to be made, before opting for banking services are:

Student accounts: A student account offers advantages like vouchers and discounts on branded articles and department stores.
Overdrafts: Overdrafts enable you to pay your university fees without carrying liquid money. Therefore, it is essential to pick an account with an interest- free overdraft limit.
Overall package: Though, the overdraft limit is necessary, you need to study the overall bank account package offered. You need to check the fees and charges applicable for certain services.
Support: Before opening a student’s account, you need to ensure that your account provides you with dedicated support at time of crisis.

You should select a banking service only after conducting substantial research and analyzing the banks credentials.