Free Checking Accounts for Students

One of the best things you can encourage your child to do is to open one of the many free checking accounts for students that are being offered.  It will teach them responsibility and help them to learn how to budget money.  

You can refer to any financial expert and they will all recommend the same thing. By the time your child is 16 they should have their own money that they are responsible for and they should be banking.  

Free checking accounts for students are helpful in so many ways.  

Rules and Restrictions  

Banks are not out to make friends they are a for profit business so although they will offer free checking accounts for students there are always some kind of catch to the deal. A good rule of thumb is to help your student to understand the terms and conditions and encouraging them to read the fine print.  

Some things you can expect with free checking accounts for students are; limited transactions, restricted check writing abilities and restricted customer service options. Now these restrictions may not be true of all banks but they are some of the most common restrictions.  

Penalties   

The penalties that are dealt when the rules and restrictions are not adhered to can be steep so it is really important that your student understands the rules and regulations. Again this can not be stressed enough the bank is a for profit institution and will very rarely waver from their fees and penalties so it is important to stay within their guidelines for management of the account.  

Typically the penalties will be assessed if you go over your transaction limit. The penalty may be small around a dollar or so but it can add up quickly.  

Parents Signature  

Usually if the student is under 18 a parents signature is required to open the account. Anyone under the age of 18 in most states can not enter into a contract and basically when you open a checking account it is a contract between you and the bank.  

Ultimately if this is the case the parent or guardian is going to be responsible for the account.  

Free checking accounts for students can be a useful tool for young folks to learn how to manage money and to abide by regulations. They are a great way to get students ready for the real world!