Best Student Checking Accounts


Every student needs to have a bank account to deposit the side gig job salary to just keep your savings. Let me show you the best student checking accounts that you should consider.

Choosing your bank account is always an important decision. Banks hold your money while offering different benefits and plans and can help you manage your life. 

With all of this, it’s quite the no-brainer that choosing the right bank for you can be very useful and crucial to your finances and lifestyle. However, settling for just one can be very challenging with all the different benefits, such as interest earnings (APY), ATM availability, minimum balances, and more.

But don’t worry! Here at Financial Wolves, we’ve picked 6 of our favorite bank accounts for a variety of needs, such as investing, saving, checking, or more!

But before we do that, let’s define some common terms you’ll see throughout this article that you may be unfamiliar with. 

What is APY in Banking?

APY is the interest rate on an account. An APY of 0.01% means that if you have $50,000 in the account, at the end of the year you’ll get a free $5 to account for inflation. Some banks have a higher APY than this.  For example a 4.35% APY with $50,000 in the account means you’ll get an extra $2,175 at the end of the year. 

Take Away: You need to choose the checking account with higher APY. Higher the APY, more money you can make from bank.

What is an Overdraft Fee?

An overdraft fee is the fee paid when you take more money out of your bank account than there actually is. For example if you have $20 in your account, but withdraw $35, you’ll have a bank statement of -$15. The bank will give you this “free money” but you have to pay for it in the form of an overdraft fee. 

Take Away: Ideally you need a checking with $0 over draft fee. if not, pick the one with the least overdraft fee.

Minimum Balance Requirement

A minimum balance requirement means that you need to have a monetary amount above a certain threshold in order to avoid fees or penalties. Let’s say a bank has a minimum balance requirement of $1,500. If you have only $1,335 in the account you will get fees from the bank. 

 

Now that we have defined some of the harder vocabulary words, let’s get into the six bank accounts!

Chase Bank – Total Checking

Chase Checking Accounts are great options if you’re looking for a checking account. 

They offer benefits such as:

  • 0 – 12$ Monthly Fees
  • Fee Free ATMs
  • Access to Direct Deposit
  • Chase Bank Mobile App

However, some downsides include having no investing options, a 1500$ minimum balance, and a low 0.01 – 0.02% APY. Chase Bank also has a 34$ overdraft fees and a 3% foreign transaction tax.

Overall, Chase is a great option for a checking account however, if you plan on saving short-term or long-term, it might be a good idea to consider a different account with a higher APY and fewer fees.

Capital One – Performance Savings

Capital One’s Performance Savings account is a savings-based account with high APY and very few fees, making it an excellent option for those who plan to save long or short-term.

They offer benefits such as:

  • 4.35% APY
  • No Monthly Fees
  • No Overdraft Fees
  • No Foreign Transaction Fees
  • Fee Free ATMs
  • Capital One Mobile App
  • No Minimum Balance
  • Direct Deposit

There weren’t many downsides other than the fact that the Capital One Performance Savings account cannot be used primarily as a checking account, meaning that it cannot be used for daily spending.

Overall, Capital One’s Performance Savings account is an excellent choice if you are looking for savings with high interest and very low fees. However, if you want your daily spending, you might want to try and look for another checking account.

Sofi – Savings Account

Sofi’s Savings Account is an account meant for saving and gaining interest over time, which means that it has a high-interest rate and payout for those with long- or short-term goals. 

They offer benefits such as: 

  • APY up to 4.6%
  • No Monthly Fees
  • No Overdraft Fees
  • No Minimum Balance
  • Fee Free ATMs
  • Sofi Mobile App
    Direct Deposit
  • Few Free Checkbooks

Sofi offers many benefits; however, similar to the Capital One Savings account, it cannot be used for daily spending and has a 3% foreign transaction tax. 

Overall, Sofi is an excellent savings account option with its numerous benefits and high APY rate. It is highly recommended for those wanting to save for long and short-term goals.

Fidelity – Teen Checking

Fidelity’s accounts are often meant for investing and purchasing stocks with the money you have in your account. This makes it an excellent option for those who want to invest and make smart choices with their money in the future. 

They offer benefits such as:

  • 2.7% APY
  • Investment Options
  • Fidelity Mobile App
  • Fee Free ATMs
  • Direct Deposit
  • No Monthly Fees
  • No Minimum Balance

It offers many great investing opportunities but has many downsides, such as 1% foreign transaction fees, $10$ continuous overdraft fees, and no free checkbooks. 

Overall, Fidelity is a great option if you plan on investing and purchasing stocks in the future. However, it cannot be used for daily spending, so it is recommended to have a separate account for such purposes.

American Express – High Yields Savings Account

The American Express High Yields Savings Account saves money over time with high APY rates and many benefits. This makes it an excellent option for people looking to save in the long or short term.

They offer benefits such as:

  • 4.35% APY
  • No Monthly Fees
  • No Overdraft Fees
  • Fee Free ATMs
  • AmEx Mobile App
  • 0$ Minimum Balance
  • Direct Deposit

It offers minimal downsides as it cannot be used for daily spending, has 2.5-2.7% foreign currency fees, and has no investing options.

Overall, the American Express High Yields Saving Account offers great savings opportunities. However, as it is a savings account, it should not be used for daily spending, so it is recommended that you have a separate account alongside this one. 

Discover – High Yield Account

Discover is a great option for a savings account if you’re looking for a high-interest payout. Its high APY allows for long-term and short-term saving goals.

They offer benefits such as:

  • 4.35% APY
  • No Monthly Fees
  • No Foreign Currency Fees
  • No Overdraft Fees
  • Fee Free ATMs
  • Discover Mobile App
  • Direct Deposit.

Some downsides include that it cannot be used for daily spending and has no investing options. 

Overall, the Discover High Yields account is an excellent option for a savings account as it has little to no downsides and a great interest payout alongside minimal fees. It should not be used for daily spending as it is a savings account, but it is great for saving goals. 

FAQ

  1. Bank accounts have much to offer, but you likely don’t need everything. The two main points that banks offer are saving and spending. These two types of accounts are categorized into checking accounts and savings accounts.
  2. Checking accounts are used for spending and splurging. With a checking account, you can make payments with debit cards, pay bills, withdraw cash at ATMs, send money online, and more.
  3. Savings accounts are used for saving money and earning more through APY or interest. Sometimes cash withdrawals can be at limited times per month by the bank. This money is saved and can be used within a few years or saved long-term for investments, college funds, or retirement.
  4. Brokerage accounts are used for investing your money into stocks, bonds, mutual funds, ETFs, and other financial assets. The account cannot often be used for daily spending or withdrawals. Oftentimes, these accounts are used for long-term investment goals or short-term investments.

 

I run a online blog about finance. We are trying to make media content for our blog and this is a blog post where we are comparing some of the best choices for opening a bank account for beginners who lack knowledge about the topic. We want to tell people what the strengths and weaknesses of these accounts are. The video should be about 8-9 minutes, the background music should be engaging but also informational and professional. I want a young male voice that sounds professional and bold. Keep the language easy to understand. I will attach the blog below, be sure to make it into a video format.

The bank accounts for your consideration:

  1. Chase’s Savings Account
  2. Capital One’s MONEY Teen Checking Account
  3. Sofi Savings Account
  4. Fidelity DIY Investing Account
  5. American Express High Yields Savings Account
  6. Discover High Yield Account

 

Compare these accounts using these factors:

  1. APY
  2. maintenance/atm fees?
  3. foreign transaction fees?
  4. overdraft/nsf fees?
  5. Do they have fee free atms?
  6. Do they have a mobile app?
  7. Whats minimum balance?
  8. Allow direct deposit?
  9. Contain investing options?
  10. Give Free Checkbooks?

 



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