Best Banks for College Students for 2023

Are you a college student looking for the best bank that will fit your needs? As a college student, it's important to understand how the right bank account can help set you up for financial success. With so many banks offering services tailored towards students, it can be hard to know which one is going to provide the most value and convenience. To make life easier, we've gathered everything you need to know about the best banks for college students so you can compare different options and pick the best one!

How we decide which student banks to list on this page
You might be wondering how the crew at The Ascent decided which student banks to recommend on this page. Here's our golden rule as a company: We only recommend student banks that we would pass along to Mom, Dad, and friends. (That also means big banks can't pay their way onto this page!) So as you read this list, imagine you're at a summer BBQ, Thanksgiving dinner, or family reunion, eavesdropping on an Ascent staff member raving about the best student banks right now.

What should students look for in a bank account?

Since money is often tight, many students want a bank that offers low fees and a wide range of account benefits. A lot of places offer checking accounts specifically designed for students.

Here are some things students can look for in a bank account:

• Fees: Banks that don't charge any fees, including waiving ATM fees or a robust number of fee-free ATMs are great for students on a budget.
• Low deposit requirements: There may be a small deposit required to open an account, but many banks don't require a minimum to keep the account open.
• Mobile banking tools: See if a bank you like lets you check balances, pay bills, and make transfers.

Students can open a student checking account at an online-only bank or a brick-and-mortar bank:

• Online bank: Everything happens online in a web browser or mobile app, including deposits and customer service.
• Brick-and-mortar bank: You can make deposits, withdrawals, and other transactions in person at a branch.

Some banks are fully online only and some brick-and-mortar banks offer a mix of branches and online services.

Read more to see which is a good fit for you: Online vs. Brick and Mortar Bank: Which Is Better?

Why should a student open a checking account?

A checking account can help students learn how to budget and manage money. Here are some other great reasons for a student to get a checking account:

• Manage part-time job income: Students who have a job while in school need a place to deposit paychecks and pay their bills.
• Free financial tools and resources: Many banks have free tools and resources to help students learn how to meet their financial goals.
• Financial knowledge: Students who learn to manage a bank account when they have limited funds and transactions may have a leg up on handling the finances of a full-time job after graduation.
• Access to other financial products: Students can also build credit with a student credit card, open a savings account, and have access to auto loans through a bank.
• Earn interest: Students can grow their money with a high-yield checking and savings account.

What can students do with a checking account?

A checking account makes handling money a little easier. Here are some things you can do with checking account:

• Deposit cash
• Pay bills
• Earn interest (with some accounts)
• Write checks
• Get and use a debit card
• Withdraw money from an ATM

Plus, many banks let students access their funds online or through a mobile app.

How do you qualify for a student checking account?

Each bank has different requirements to qualify for a student account but age and school enrollment are the big factors.

To qualify for a student checking account, you need to be under 23 to 26 and enrolled in an educational or vocational program. The minimum age ranges from 13 to 17. The minimum qualifications will depend on the financial institution.

For students under 18, most banks require a parent, guardian, or custodian to be a cosigner to open a student account.

Students over the maximum age allowed by the bank need to open a regular checking account.

What's the difference between a student checking account and a regular checking account?

Compared to regular checking accounts, student accounts often have lower fees and additional benefits. Banks know that students are less likely to have a full-time job, have minimal assets, and are beginning to learn money management. As a result, banks offer accounts that are more affordable for students.

As long as the account owner qualifies as a student, banks often:

• Waive monthly maintenance fees
• Have lower minimum requirements
• Offer free ATM withdrawals

Many banks also offer educational tools for students to learn more about money skills.

What's the difference between a checking and savings account?

A checking account is for daily use and for spending money. Checking accounts are used for regular transactions, paying bills, and ATM withdrawals.

A savings account is for saving and growing money. Savings accounts have higher interest rates. As a result, they are better for storing money. Most banks limit the number of withdrawals a person can make each month from their savings accounts -- but not for checking accounts. Another difference between a checking and savings account is that savings accounts often don't have debit cards or checks.

Read More: Checking Account vs. Savings Account: Which Should You Pick?

What's the difference between an account number and routing number?

Banks assign an account number to each type of bank account. The account number is a set of digits that identifies a specific account. If a student has a checking, a savings, a money market, and a certificate of deposit account (CD), they get four different account numbers.

A routing number is a nine-digit code that identifies a specific bank or financial institution. Some banks have different routing numbers based on geographic location. When sending money from one bank to another, the routing number tells you what bank the money is going to and the account number tells you what account at the bank it is being sent to.

Students need both their routing and account numbers to:

• Set up direct deposit with their employers
• Send or receive a wire transfer
• Do other types of financial transactions

You can find both numbers on your checks, in your online account, or by contacting your bank.

What fees do I need to watch out for?

Even with student checking accounts, students may have to pay other fees. Before opening a checking account, familiarize yourself with the fees below. Learning when and why banks charge these fees will help you get the most benefit from your checking account. It can also help you avoid checking account fees.

Monthly maintenance fee

This fee is also known as a service change. It is a recurring checking account charge that often ranges from $5 to $15 per month. Many banks waive this fee for student accounts. Requirements to waive are often based on things like:

• Minimum ongoing deposit amount
• Minimum number of account transactions
• Setting up direct deposit

Overdraft fees

People who spend more than they have in their checking account can be charged an overdraft fee. A typical overdraft fee is $35 per incident. In addition, banks charge a sustained overdraft fee if the checking account remains negative. Some banks have a maximum number of charges they charge per day.

Some banks offer overdraft protection. This allows customers to link another bank account, a line of credit, or a credit card to their checking account. In case of an overdraft, the negative balance will be charged against their other account. Some banks charge a fee for overdraft protection.

ATM fees

Withdrawing money from an out-of-network ATM machine costs a customer anywhere from $2 to $5 per withdrawal. ATM fees can include a fee the bank charges the customer and the fee from the ATM's owner.

Many banks have a network of ATMs that offer free cash withdrawals. For example, Capital One has more than 70,000 fee-free in-network ATMs. Bank of America has about 16,000. Some banks reimburse ATM fees up to a certain amount per statement cycle.

Returned item fees

Also known as a non-sufficient funds (NSF) fee, this fee is assessed by the bank if a customer writes a check and there isn't enough money in their account to pay for it.

The check will "bounce" and be returned to the customer. Banks often charge a bounced-check fee in addition to overdraft fees. NSF fees range anywhere from $20 to $40.

Paper statement fees

Some banks charge anywhere from $1 to $5 per paper statement for the printing and mailing costs. Many banks waive this charge if you opt in for electronic statements.

Foreign transaction fees

Students who use their debit card outside of the U.S. for purchases or to withdraw cash (or on some purchases made in foreign currencies from within the U.S.) have to pay extra charges. These fees range anywhere from 1% to 3% of the total purchase amount. In addition to the foreign transaction fee, banks may charge an international ATM fee. This fee is typically a flat fee of up to $5 per cash withdrawal.

Learn more: What Are Foreign Transaction Fees?

Account closure fee

Some banks charge up to $25 for closing an account. Most banks charge early account closure fees if opened within 90 to 180 days of opening an account. This is to prevent customers from opening an account to receive any special perks and then immediately closing them afterward.

Tips for picking the best student bank account for you

Finding the right checking account is important since most people use their checking account for everyday banking. You want to find a bank that best suits your needs, is easy to access, has low fees, and can help meet your financial goals.

Here are the factors to consider when choosing the best student checking account for you:

• Account type
• Bank type
• Fees
• Minimum balance requirements
• Digital banking tools
• Customer service
• ATM network or fee reimbursements
• Other perks like high APY or cash back rewards

FDIC or NCUA insurance

Check if the bank or credit union you like is insured by the FDIC or NCUA. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to $250,000 (per depositor, per bank). That means if your bank goes under for some reason, your money is protected by the federal government up to that limit.

Read more: What Is FDIC Insurance?

The National Credit Union Administration (NCUA) is the FDIC equivalent for credit unions. This insurance protects and reimburses students up to $250,000 if the credit union fails. Ensure that your student checking account is insured by either agency or for state credit unions, insured by their state agency.

Type of account

Most banks offer several types of checking accounts. The right fit depends on how you use your account. Most student accounts are specialty accounts that are standard checking accounts with additional benefits.

Many banks also will close or transition a student account to a standard account once you are no longer a student. So you may want to look for a bank that you want to have a long-term relationship with.

Here are the most common types of checking account:

• Standard checking account: This is the most common type. It lets you make deposits and withdrawals, write checks, pay bills, and use a debit card. They offer low or no APY, and you may have to pay a monthly fee.
• Premium checking account: Premium accounts require a higher balance than a standard account, often $2,500 to $25,000 (or more for high-end banks). Premium account holders often earn interest, get discounts on other services from the bank such as slightly lower mortgage rates, and enjoy a lower fee structure.
• Interest-bearing account: Also known as a high-yield account, these pay an APY like a savings account. Some banks pay a flat interest rate regardless of the balance while some pay more for higher balances. Customers need to meet requirements such as a minimum average daily balance or direct deposit requirement.
• Rewards-based account: Like credit cards that pay rewards for everyday purchases, these accounts offer cash back, points, or special discounts. However, they often have higher fees and have complicated terms.

Fees

As mentioned above, even free checking accounts may have some fees. Online banks rarely charge monthly maintenance fees. Banks with physical locations often charge fees but some waive them if you keep a minimum required balance. It's often best to find a bank that charges no fees or one that can be easily waived.

Minimum requirements

Some banks require minimum deposits to open a student account. They also require a minimum balance to continue qualifying for a free account. Students that don't meet the minimum requirements will often have to pay the monthly service fee. It is best to find a bank that doesn't require minimum deposits or average balances.

Digital banking experience

The primary way of accessing a bank account for an online-only bank is through the bank's mobile app and website. Look for a student bank account that is easy to use, offers robust digital tools, and has a highly rated mobile app.

Customer service

Online-only banks do not have branches. If students have any issues, they can only contact the bank through online chat, email, or phone support. Find a bank that offers easily accessible customer service. If you prefer face-to-face customer service, you can look for a bank that has physical locations and an online banking feature.

For example, Wells Fargo offers online checking accounts and has about 5,000 locations across the U.S. On other hand, Ally Bank has no physical locations but comes with highly rated customer service.

If having someone to talk to face to face is important, look for a bank that has branches near where you work and live. If you are content with online access, look for a bank that has robust financial features that can meet your needs.

ATM network or generous ATM-fee reimbursement program

You want your bank to be as accessible as possible. If you often pay with cash, you will need access to in-network ATMs to avoid any ATM fees. If you only have access to out-of-network ATMs, look for banks that offer generous ATM-fee reimbursements.

For example, despite Chime having no physical locations, it has over 60,000 fee-free ATM locations. Wells Fargo on the other hand has only 12,000 fee-free ATMs.

High APY, cash back, or other benefits

As of August 2023, the average annual percentage rate (APY) for checking accounts was 0.07% according to the FDIC. APY is the amount of interest you earn for keeping your money in a checking or savings account in one year. Some banks offer more APY and even generous cash back rewards. When looking for the checking account that's right for you, consider what additional benefits a bank offers.

There are many great student checking accounts available for those looking to open one. By taking these factors into consideration when choosing the best student checking account, you can find the right one for you.

Bank terms you should know

Understanding some banking and checking account terms can help you better manage your money. Here are some other common terms to be familiar with:

• Debit card: A debit card is a payment card that's linked to a checking or savings account. Unlike a credit card, which lets you borrow money and pay it back later, debit card transactions are approved based on the current balance of your account. The money is then immediately deducted from your checking account.
• PIN: You choose a four-to-six-digit code called a personal identification number (PIN) to access your bank account or use your debit card. You also need a PIN to get money from an ATM.
• Insufficient funds: If a student writes a check or attempts to spend more money than they have in their checking account, the transaction may be rejected for insufficient funds.
• Overdraft: An overdraft is when a transaction causes your account to have a negative balance. Here's the key difference between an overdraft and insufficient funds: A transaction that results in an overdraft is approved. A transaction resulting in insufficient funds is rejected. Overdrafts usually carry fees.
• Compound Interest: Compound interest is the interest you earn on your initial deposit and accumulated interest from previous periods. It is "interest on interest."
• APY: Annual percentage yield is the amount of interest you earn for keeping money in a checking or savings account in one year. APY takes into account compound interest.
• ACH: An Automated Clearing House (ACH) authorization is a payment authorization where the lender is given permission to electronically take money from your bank account. Students often pay their bills automatically via ACH by providing their account and routing numbers.
• Automatic debit payment: With automatic debits, students give permission to a company to take payments directly from their bank account.
• Recurring bill pay: Students give permission to their financial institution to send the payments to a company they owe money to.
• Mobile or remote deposit: Most checking accounts let students make check deposits from their smartphone or other mobile device by uploading a photo of the check.
• Endorsement: To endorse a check means to sign the back of a check in the specified area, indicating the person being paid is accepting the money.
• Deposit hold: The amount of time a bank holds funds from a check you deposit is sometimes called a "deposit hold" or "check hold." It can take several days to a couple of weeks to release the money. Some banks make funds available more quickly than the law requires, and some make funds available faster for a fee.
• Check number: Every check has a unique number (usually three or four digits). Check numbers are useful for keeping track of payments you make by check and can also help identify fraud in many cases.