If you are a student or just graduated from high school, there are a lot of bank accounts and other financial products that are made just for you. Students used to get a lot of flak for getting big government grants, but those days are long gone, and now students have to be smart with their money if they don't want to rack up big debts. Here are some tips on what kinds of accounts to look for if you are a student or just graduated.
Why do they have so many accounts?
More and more people are getting student and graduate accounts, which usually have a lot of features and good rates. Even though most students are poor and can't pay back money they borrow, banks want to give them these accounts in the hopes that they will stay loyal to the bank when they start making more money.
Accounts for students
You might have a simple checking account when you go to college, but the best thing to do is to open a student account. Student accounts come with a lot of perks, like coupons and discounts for clothing and record stores. But the interest-free overdraft is the most important part of your student account.
Overdrafts
When you're in college, it's likely that you'll need an overdraft at some point to pay your bills even if you don't make a lot of money. So, it's important to choose an account with a good overdraft limit that doesn't charge you interest. Try to find the bank with the most interest-free overdraft because if you borrow money without permission, it will cost you a lot of money.
Overall package
Even though the overdraft limit is important, you should also look at the rest of the account. Look at the other fees and charges the bank puts on your account as well as the extra benefits it offers. Some student accounts come with a credit card, among other things. Try to find the account package that fits your needs the best.
Helpful support
Make sure that the student account you choose has dedicated support, as this can help you when times are tough. A bank with a branch on your campus is an even better choice, because a student bank manager is more likely to understand your financial problems. Also, keep an eye out for online banking, which can help you move money and pay bills quickly when you need to. It can also help you keep a close eye on your spending.
Accounts for graduates
When you graduate from college, many banks will let you switch to a "graduate account." When you get your student account, you should look into these, because the right student and graduate package can really help you make the transition from being a student to being a worker. Before you choose a package, don't be afraid to switch accounts and banks and look at other options.
