• Sun. Apr 14th, 2024

Everything You Need to Know About a Student Bank Account

Louise Villalobos

ByLouise Villalobos

Mar 21, 2024
Everything You Need to Know About a Student Bank Account

Financial institutions like banks and credit unions offer a wide range of accounts. One of them is a student bank account. In this article, we will define this account and explain its benefits. Read on to learn more.

Understanding a Student Bank Account

Student bank accounts are mostly checking accounts. They are designed for students. Moreover, banks only give access to student accounts to people under 25. Anyone below 18 is required to open the account with their guardian/parent as a co-signer.

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Pros and Cons of Student Bank Accounts

Like any other bank account, a student account has its own strengths and weaknesses. Let’s discuss them below.


No monthly fees are required: Most banks do not impose maintenance fees on bank student accounts. However, some banks may charge monthly maintenance fees but waive them if you meet specific conditions like maintaining a minimum balance.

Zero overdraft fees: Many banks don’t charge overdraft fees when students overdraw their bank accounts. Banks that impose these fees charge roughly $30 per transaction.

No or low minimum account balance: Most banks do not require students to maintain a certain amount in their accounts. Banks that have minimum balance requirements ask students to maintain at least $25.

No or low ATM fees: Many financial institutions do not charge a withdrawal fee when students remove funds via ATMs.


You may need to visit the bank in person: If you are below 18, your bank will likely limit you from opening an account online. Therefore, you must do this at the bank’s branch.

No or low interest rates: Your student bank account is unlikely to earn interest on the deposits. But even if it does, the interest rate is usually lower than that for a standard savings account.

A co-signer may be required: If you are under 18, you will need a co-signer to open a student bank account. This means you will lack total control over your account.

Account conversion upon graduation: When you graduate or turn 26 years old, your bank may convert your student bank account to a regular account, causing you to lose benefits like zero monthly maintenance and ATM fees.

How to Select a Student Bank Account

There are several factors that you must consider when choosing a student bank account. Some of them include:

1. Monthly fees.

2. Minimum balance requirements.

3. Initial deposit requirement to open the account.

4. Interest earned on your deposit.

5. Check whether the account has a debit card.

6. Consider ATM fees charged.

7. Check the bank’s presence. Ensure it has a branch near you.

How Do You Open a Student Bank Account?

Here are the steps you need to follow to open a student bank account:

1. Select the bank where you wish to open your student account. Consider the factors discussed above when choosing a bank.

2. Find out if opening a student account online is possible. If not, visit the bank’s branch near you.

3. Check whether you need a co-signer to open the account or if you can do it alone.

4. Provide required personal information like your home address, name, phone number, school phone number, and school address.

5. Submit your individual taxpayer identification number or Social Security number.

6. Provide a student ID, driver’s license, and school acceptance letter.

7. Make your first deposit to activate the account.

Can You Have Both a Regular Account and a Student Bank Account?

Yes! If you meet the set requirements, holding another account other than a student account is possible. Suppose you open a student account along with a regular one at the same bank. In that case, it is advisable to maintain a combined balance of equal or less than $250,000 to become eligible for FDIC insurance.

Is it Free to Open a Student Bank Account?

Most banks do not charge a coin to open a student bank account. For banks that do, the fee is usually minimal.

Louise Villalobos

Louise Villalobos

Louise Villalobos is an adept writer, renowned for her compelling articles that illuminate and engage. Her prowess in breaking down intricate subjects provides readers with clarity and nuance. With a vast and varied portfolio, Louise has solidified her standing as a distinguished voice in contemporary journalism.