Most of the college or university financial transactions are processed through student accounts. Banks are usually willing to offer students a specific bank account, called a student bank account. The student savings account is offered exclusively to college and university students. A student checking account is available to all full-time students who are at least eighteen years old.
Specifically tailored for students, student bank accounts are generally used to manage billing and payment of student tuition, on-campus housing, and other campus charges. They are offered to students from freshmen to seniors and beyond. Most of the financial aid and scholarship money is directly credited to student bank accounts.
Almost all of the major banks offer student bank accounts with a wide range of services and facilities. Certain financial institutions offer incentives and gift vouchers when students open their accounts. Just like normal current accounts, the facilities offered by student bank accounts often vary enormously from bank to bank. With student bank accounts, one can view the account transactions by date or by term. Unlike other bank accounts, student bank accounts do not pay interest.
One of the major advantages of student bank accounts is that they provide instant access to funds. Moreover, they offer credit cards and interest-free overdraft facilities, but the amount of overdraft varies from bank to bank. Besides, they provide flexibility wherever possible in order to help students meet their financial obligations. Before opening a student bank account, one must be aware of the services offered by a bank. To open a student bank account, a student must provide personal details along with a reference from his parents or college principal.
There are several factors to be taken into account while opening a student bank account. Proximity of the bank to the campus is of importance as it facilitates greater access. If there is no branch nearby, then Internet banking facilities and telephone banking are the best alternatives. Overdraft rates and charges on authorized overdrafts are the other factors to be considered when opening a student bank account.
