According to Third Way data, college graduates make nearly $900,000 more than high school graduates. This is why every student needs a checking account. Checking accounts are very important, but they may be costly. Many large banks levy account maintenance fees of up to $15 per month. So What Is The Best Checking Account For Students?
Capital One is the only bank that provides students with seamless opportunities when they open a checking account with them. There is no minimum deposit to open a Capital One checking account. Not only that, all balances receive a 0.60 percent annual yield. You also have the chance to withdraw money from an ATM or a bank teller daily. Furthermore, you can send money to anyone via Zelle by using Capital One.
Capital One: A Brief Overview
Capital One is a full-service bank that can handle the majority of banking demands with low rates and no fees. Capital One is mostly an online bank, with few branches and Capital One Cafés in selected locations.
Capital One provides credit cards, vehicle loans, and corporate and commercial solutions in addition to popular consumer banking options.
Customers can choose between monthly, quarterly, or annual interest payments. Transfers to other Capital One accounts or external bank accounts are also possible.
Why Capital One Is The Best Checking Account For Students
Having a Capital One student checking account can help you establish financial independence and develop your money management skills during your stay the college. Students will find a lot of advantages using this current account. Many banks charge maintenance costs that can cost up to $15 per month, but with Capital One, everything is free. These include no fees, easy access to automatic ticket distributors, a debit card, in some cases free checks, and a mobile application.
Capital One offers two different accounts for students. They are:
- Capital One Money Teen Checking
- Capital One 360
Capital One Money Teen Checking: How It Works
The Capital One Money Teen Checking Account is for students under the age of eighteen. This account is intended for adolescents, although any child between the ages of 8 and 18 can open it with his or her parents or guardians. There is no minimum deposit requirement, no fees, and a wide ATM network is available. You earn 0.60% APY on your balance.
To access the account, a child/student can use the Capital One Mobile Application or Website. More than 70,000 Capital One, Allpoint, and Moneypass locations accept the account debit card. For those who prefer to visit a real place, Capital One maintains a limited number of branches and Capital One cafes.
Capital One offers outstanding digital tools for managing your money and achieving your financial goals, as well as 24-hour customer care. You can set savings goals and divide the balance of your expense account into reserve categories.
Capital One 360 Checking
You can move on to another Capital One checking account, the Capital One 360 checking, after you reach the age of 18. Because the 360 checking account has no monthly maintenance fees, there is no need to meet the balance or deposit requirements. When you change your account from teen checking to 360 checking account, the balance of your money account will also be transferred.
The Capital One 360 Checking account is the best-rated checking account. To open an account, there is no deposit necessary, however, you must deposit within 60 days or your account will be cancelled. There is no minimum balance required to create a Capital One 360 current account, and all balances receive 0.60 percent APY, which is greater than the national average of 0.04 percent.
If you overdraw your account, Capital One permits you to recover to the grace of the next business day, which allows the bank to authorize transactions that exceed your account amount. You will have until the end of the next business day to make a positive balance, otherwise, you will be charged $35 in fees. If you do not opt-in yourself, Capital One will either automatically decline transactions that will exceed the balance of your current account (at no cost) or transfer the available funds from a linked savings account, depending on the option you choose. All overturned paper checks will lead to costs of $9, regardless of the overdraft coverage.
Capital One, which has 450 branch locations, is a better option than an online current account for account holders who prefer physical banks. Plus, there are already 41 Capital One cafes where you can bank, work, drink coffee, and get financial advice from qualified money coaches. At present, many cafes are closed due to Coronavirus, but Capital One is in the process of reopening selected locations.
With Capital One 360, you will not be charged a foreign transaction fee if you use your debit card outside of the United States.
Conclusion
Although there aren’t many requirements for student checking accounts, you should avoid maintenance fees and other hidden expenses. We recommend Capital One because of this.
Frequently Asked Questions (FAQs)
Can an underage child open a Capital One student account?
Yes. Capital One allows children under 18 years to open a functional checking account.
What will happen to my Capital One student account when I graduate?
Your account will remain intact. You can always convert or upgrade your student’s account to an adult account without transferring your balance.
