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The standard student bank account is only available to students that are in college or university, although some student bank accounts are also designed to suit high school students as well as long as a parent is willing to sign up with them. Most student bank accounts are designed to cater to full-time students studying to obtain a degree or an equivalent university qualification. There are numerous benefits and advantages associated with this type of account, including all of those that are listed here.
Debit Card
Most student banking accounts offer a debit card, which means that students can obtain the cash that they need on demand as long as there is a suitable level of funds in the account at the time. These debit cards are capable of being used at ATMs, banks, online and in shops as they are typically Visa or Master Card debit cards.
Free Banking
In most instances, student banking accounts are designed to offer free banking, meaning that most typical banking charges are waived for college and university students. This makes this an affordable option for the student strapped for cash because they will not be losing money to exorbitant banking fees throughout the year.
Interest Free Overdrafts
Many banks easily recognize that students are finding money to be tight, and as a result they offer overdrafts that are interest free for up to a certain amount of money. This amount is going to likely increase with each and every year that you are studying to accommodate your monetary needs.
Other Banking Incentives
Many student banking account options also incorporate other banking incentives to benefit students. This may include additional investment options, free gifts and other things as well. Think about the long term benefits that are associated with benefits like these. Some banking institutions may offer free metro passes or discounts at local shops and businesses for example.
Additional Borrowing
On the same note mentioned above regarding students being strapped for cash, many banks offer additional opportunities for borrowing to students in need. If you are in need of more money than what your current overdraft limit is going to allow, then you may be able to obtain additional borrowing at a special interest rate intended just for students.
Credit Card
Some student banking accounts may also give students the ability to take out a credit card, using their banking account (savings or checking) as a form of collateral. Think carefully before you explore this particular advantage, because you are not going to want to run up a bunch of debt that you cannot easily pay off, because the bank likely will not waive these interest charges.
Insurance
Finally, many student banking accounts come with personal insurance, intended to cover a variety of different items such as stereos, clothing and books for example. This is a good option for students that are looking for personal insurance coverage without having to obtain it elsewhere.
Student Bank Account Rules And Advantages
