What Is a Student Bank Account?

A student bank account is an account, such as a checking or savings account, that is geared toward students or young adults in their teens or 20s. Benefits of a student bank account may include no monthly fees, no overdraft fees, no minimum balance requirement, and the availability of a debit card for checking accounts.

Student bank accounts also have potential downsides to consider, such as possibly requiring a co-signer. Learn more about what a student bank account is and how to weigh pros and cons to determine if one is right for you or your child.

Key Takeaways

A student bank account is a bank account designed for younger adults, typically in their teens or early 20s.
Student bank accounts often have different perks and limitations compared with traditional bank accounts.
Benefits of a student bank account may include a lack of overdraft fees or monthly fees.
Limitations of a student bank account may include requirements for a co-signer.
Student bank accounts typically require you to be enrolled in school.

Understanding a Student Bank Account

A student bank account may come with numerous financial benefits, depending on the bank. These benefits may include:

No monthly fees: Many student bank accounts don’t charge monthly fees that traditional bank accounts might charge, such as maintenance fees.
No overdraft fees: Some banks don't charge overdraft fees if a student checking account is overdrawn.
No minimum balance requirement: In some cases, checking or savings accounts require an account holder to maintain a minimum balance to avoid fees. But student bank accounts often don’t have this requirement.
Debit cards: Some student checking accounts provide customers with a debit card for ATM, in-person, and online transactions.
Small initial deposit: A student bank account may require a small initial deposit, such as $10 or $25.
Low or no ATM fees: Some student bank accounts charge low or no fees for ATM transactions.

Who Qualifies for a Student Bank Account?

Banks typically limit student bank accounts to customers in a specific age group, such as 13 to 24 or 17 to 25. Minor customers usually must open a joint account with a parent, guardian, or another adult. The primary holder of a student bank account generally must be enrolled in school.

Note

International students are allowed to open a student bank account when they’re studying in the U.S. This can help them avoid foreign transaction fees from banks in their home country, and make paying for school necessities like books and food easier.

Advantages and Disadvantages of a Student Bank Account

Each student bank account will offer its own perks and requirements. Here are some common advantages and disadvantages that could potentially be included in a bank’s terms for a student bank account:

Advantages

No monthly fees
No overdraft fees
Low or no minimum deposit
Low or no ATM fees

Disadvantages

May require visiting a branch in person
Low or no interest rates
Co-owner may be required
Account conversion after graduation

Advantages of a Student Bank Account Explained

No monthly fees. Many student bank accounts don’t charge monthly maintenance fees. These fees, which you pay simply to keep your account open, generally are $5 to $25. In some instances, your bank might charge a monthly maintenance fee but will waive it if you meet certain conditions, such as keeping a minimum amount of money in your account.

No overdraft fees. Some banks don't charge an overdraft fee if you overdraw your student bank account. A typical overdraft fee is around $35 per transaction, although some banks have been lowering or eliminating overdraft fees for various checking accounts.

Low or no minimum deposit. Some banks require a minimum initial deposit of, say, $10 or $25, while others require no minimum deposit.

Low or no ATM fees. Your bank may charge low or no ATM fees for student checking accounts, depending on whether you use ATMs that it owns or that are part of the bank's network. In some cases, a bank might reimburse at least some fees for using an ATM that it doesn’t own or isn’t part of its network.

Both your bank and the ATM operator can charge fees for using an out-of-network or international ATM.

Disadvantages of a Student Bank Account Explained

May require visiting a branch in person. Some banks don’t allow students under a certain age (such as 17 or 18) to open an account online. Instead, the account must be opened at a branch.

Low or no interest rates. With student checking accounts, you are unlikely to earn interest on your deposits, just as you generally don’t earn interest on a standard checking account. If a checking account does pay interest, the rate is normally lower than it is for a savings account. (However, some financial institutions may offer higher interest rates on student savings accounts than on their traditional savings accounts.)

Co-owner may be required: In some cases, particularly if you are under 18, you will need a parent or a guardian to own the account with you or co-sign for you. They must be over 18 and you may have to open this joint account in person.

Account conversion after graduation: Once a student graduates or turns a certain age, their student account may be converted to a regular account. When this happens, you may lose some account benefits, such as no monthly maintenance fee.

How To Choose a Student Bank Account

When you’re shopping for a student bank account, consider these questions:

Are there any monthly fees?
Is there a minimum balance requirement?
How much is the initial deposit to open the account?
Does the account pay interest?
Does the account come with a debit card?
How big is the bank’s ATM network?
How much are the fees for using ATMs?
Does the account offer any rewards, such as cash back for debit card transactions?
Does the bank operate branches in case you need to do business in person?

How To Open a Student Bank Account

These are the general steps for opening a student bank account. Keep in mind that these steps may differ from one financial institution to another.

Choose the financial institution where you want to open the account. Consider fees, ATM access, and other factors.
Find out whether you can open the account online or if you need to visit a branch.
Determine whether you can open the account on your own or if you need to open it with a parent, a guardian, or another adult.
Provide personal information such as your name, home address, home phone number, school address, and school phone number.
Provide your Social Security number or individual taxpayer identification number.
Provide a driver’s license, a student ID, or another official photo ID.
Supply proof of enrollment in a school, if enrollment is required. This might be a school transcript, report card, acceptance letter, or student ID, for example.
Make an initial deposit.

Can I Open a Student Bank Account Online?

Some, but not all, financial institutions allow you to open a student bank account online. At Chase, for example, a student 18 to 24 can apply for an account online, but a student under 18 or without a Social Security number must visit a branch to open a student checking account.

Can I Have a Student Bank Account and a Regular One?

You can have more than one bank account at a time, including a student bank account and a regular bank account, if you qualify for both. If the banks have FDIC insurance, which most do, your funds will be protected for up to $250,000 for each account if they are at separate banks. If they are with the same bank, the combined funds in a student and regular banking account will be protected for up to $250,000 unless they are not the same type of account, such as if one is a joint account.

Is Opening a Student Bank Account Free?

Some financial institutions offer free student bank accounts, meaning that you won’t have to pay monthly maintenance fees. But other student bank accounts may entail a fee. Compare the terms of student bank accounts with several banks.

How Long Can You Keep a Student Bank Account?

You typically can keep a student bank account until you reach a certain age or you graduate, depending on the financial institution. After that, the student account usually converts to a regular account.

Can I Have a Student Bank Account If I’m a Part-Time Student?

It depends on the bank or credit union. In some instances, you must be a full-time student to qualify for a student bank account. However, you may be able to open a student bank account if you’re a part-time student.

Can I Open a Student Bank Account as an International Student?

An international student studying in the U.S. is permitted to open a student bank account in this country. Having a U.S. account while studying in the U.S. can make it more convenient to make purchases and can help you avoid foreign transaction fees from your bank in your home country.

The Bottom Line

A student bank account can offer many advantages for students, such as no monthly maintenance fees, no overdraft fees, and low or no ATM fees on checking accounts. However, consider the possible downsides of a student bank account, which might include a requirement for a co-signer.

Depending on the financial institution, you may need to visit a branch to open a student bank account. You may also need to recruit a parent or another adult to open a joint account with you.