<p>Any input for opening a bank account for an incoming freshman will be appreciated. Should a parent be a joint account holder or the freshmen be a solely account holder? </p>
<p>Thanks in advance.</p>
<p>FYI: I also post this in financial aid forum.</p>
<p>There have been a couple good threads on this topic. Some kids can do without a bank account freshman year. But really, there’s no reason to put off getting one. A joint account with ATM cards worked for us. Just be sure to pick a bank near both you and your student’s school. Otherwise the ATM fees can be an issue.</p>
<p>When I was a freshman, my parents got me a college credit card. So, my dad also had access to that account and my checking account (just to keep tabs on how much I was spending). We limited the amount I could take out at a time to something like 1,500 and then set it to automatic payback so that I would never miss a payment. I thought it was one of the best decisions my parents ever made because, not only did I learn how to use a credit card responsibly (with parental oversight), but I also started building credit. With a joint bank account, your freshman (and you) can see how much is coming in and going out, and where it’s going… So, in answer to your original question, no matter what kind of account you set up, it makes a lot of sense to have a parent as a joint holder, if only for the first year. That extra accountability can make a lot of difference. Just make sure they’re keeping track of it themselves as well…</p>
<p>Find out what bank has the ATM contract on campus. That’s where you want to be, as it’s all about convenience for college kids. There is likely a student sort of checking account that has no fees (no interest either, but who cares these days). I would NOT make it a joint account. Allow your kid to make his/her own mistakes.</p>
<p>My D opened up her own account during her senior year of HS when she started a p/t job; we transfered over the existing account she’d had over to that. I am on the account but she was 17 when it was opened; not sure how that works if they’re over 18. She has a checking & savings account (which are linked.) Since it’s at the same bank as ours, we are able to easily transfer money to her in an instant. </p>
<p>Look to see if your bank has a presence at the college your child will be attending; ours doesn’t, but it isn’t an issue since her debit card is accepted everywhere, she doesn’t need cash in hand often & if she does, she just gets cash back when she goes to the supermarket. </p>
<p>Regarding a credit card: we didn’t think D needed one and didn’t go that route. However, she was advised to have one for her study abroad. For her to apply she would need to show verifiable income (which she doesn’t have) so she’d have to go through the process, be denied and then have DH & I act as guarantors (which we didn’t have time for.) We were able to quite quickly add her as another user on our credit account, and get her a card in her name. Doesn’t build credit in her name, but I’m not worried about that for her yet. It’s an “emergency only” card anyway.</p>
<p>S has a checking account now with a debit card on which I am linked. I was hoping his debit card could be used fee free in college town but it can’t. So we are opening up a separate checking account for S in college town. He will have his work study money deposited there and some of his summer savings. If he needs to he can use his current debit card to pay for large emergencies and I will able to transfer additional money into it if necessary.</p>
<p>At first we had over analyzed and kept thinking we needed to be linked to his acct in college town in case he needed money quickly for whatever reason. But, then once we stepped back I realized he could just use his existing debit card for those emergencies and we would just eat the relatively small fee.</p>
<p>I open a checking account at the bank that is prominent on campus with no fee and free ATM when using debit card. Then I open an ING orange account which I use to link my kid checking account to my checking account. I transfer my money online through the ING account as needed with no fee. There is a little bit of lag time between transfer (about 4-5 days) but as long as you can plan ahead, everything is fine.</p>
<p>Make sure there is a convenient branch where child is going to college. Not the time to use your locally owned bank because the ATM fees will kill you. Also, if it is not a convenient walk, kid will use the closest ATM and there go the fees again. I do recommend that the parent have his or her name on the account and that the parent has access online. The account should be linked with the parent’s checking and/or a savings to make transfers, i.e. monthly allowance. You can do this so that you can make transfers, but the kid cannot…I do not think most 18 year olds are ready for sole responsibility for an account, and especially not the savings account where their college money rests until needed.</p>
<p>We started DS on a joint teen account during his senior year to drill the mindset for balancing checkbook, not to spend more than accounts has funds, writing checks, and other basic money management activities. We thought credit cards are a bad idea until he becomes a bit more mature about money. We also found out that debit card works well. So we migrated from a teen account to a regular account with debit card along with joint account ownership. We also found out as an out of state freshman, he needed to change his address to his local dorm room address and reorder checks with local address.</p>
<p>Thank you very much for all the input. I will likely to open a joint account for my D. </p>
<p>Thanks again.</p>
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<p>My kids opened account with BofA and chose not to use paper check, and chose to use online communication only so that they will not have any fee. BofA said they can write check online. And contrary to some other posts on other threads, BofA also offers credit card for students (must be 18).</p>
<p>I have a BofA checking account and my son also opened a BofA checking account. He wanted to manage his own money so insisted on his own account, and it really is time. There is a BofA ATM on campus and a physical bank within walking distance, so it was perfect. Because we both have BofA accounts, if an emergency arises, which there have been a few, I can just go online and transfer money from my account to his and it appears in his account within minutes. He’s been really responsible but things crop up and it’s been great to have the money in his hands almost instantaneously.</p>
<p>My son and I opened a joint checking account at Chase where I have other accounts, so there are no service fees. Through online banking (I can see all of our accounts, but he can only see his), I can transfer money as needed. A nice feature is that you can set up text/email alerts if your balance drops below a specified level.</p>
<p>He can get cash back at the grocery store with his debit card when he’s not near an ATM. He also has an APP on his smartphone so that he can scan checks for instant deposits.</p>
<p>I told him that when I was in college, back in the “old days”, the banks made it much harder to access our money, which was often a good thing!</p>
<p>3 features that I’d look for in a freshman account:</p>
<ol>
<li> Fee-free ATM located conveniently for student.</li>
<li> Parent can seamlessly and for free transfer money into student account online.</li>
<li> Student account has no monthly fee.</li>
</ol>
<p>Bonus: Student can qualify for a low limit credit card on his own, to help build a separate credit history.</p>
<p>Don’t buy any checks. Kids don’t write checks anymore. They transfer money from account to account.</p>
<p>I opened one for my D with USAA and she also was able to get a low limit credit card in her own name (and also an Old Navy Visa easilly in her own name too). USAA reimburses ATM fees so that was not a problem and she can access everything online and make deposits online or through our phones. It worked out fine for her. She did actually need 2 checks in the year for sorority things but I just wrote those for her and she transferred the money into my account to cover them. D1 has her account set up to email her balance regularly and for set alerts of large amounts charged or if it goes below and amount. She’s been very good with her money and her credit cards so I am hopeful she will stay on track and graduate with strong credit as well.</p>
<p>It’s worked great for her/us. Just opened accounts for my D2 and S as they have summer jobs and while in HS can start managing their money. I am listed on all the accounts so I can transfer or make deposits if needed but I they are their accounts.</p>
<p>We bank at BofA and our DS has his checking account there also - as noted above the instant on-line transfer capability is great to have. However, BofA does not have a branch within 50 miles of his school. The ATM fees would have killed us. DS accounts are in his own name, but since the accounts are at the same bank, we can still do instant transfers. DS has given me his log on so I can monitor his balances. </p>
<p>DS opened a low minimium balance account at the school credit union for free ATM access at multiple sites on campus. He still uses the BofA account with debit card as his primary account and the credit union is only for currency needs. Another consideration for having an account on/near campus is that it provides a means to obtain currency in case he would lose or misplace his wallet containing his ATM, debit and credit cards. </p>
<p>We also made DS an authorized user on one of our back-up credit cards - for emergency or agreed usage (books, airline tickets home etc.) only. (He is very responsible - so we have no real concerns in doing so.) Since the wife and I rarely use this card it is easy for us to monitor usage.</p>
<p>When I attended college, I had to have an aunt on my college banking account during my freshman year because I was 17 and my parents were dealing with far too much at the time. However, beyond giving me the basics of how to manage the savings/checking account, the aunt ended up opting for a hands-off policy when she saw how well I managed the account/my own spending within the first semester. </p>
<p>Personally, my only regret from a financial standpoint was not opening a student credit card account to build my credit history during my undergrad years. </p>
<p>That really limited my rental and credit card options for a couple of years after I graduated because I had no credit history when I graduated. Problems subsided when American Express which initially rejected my application because of that issue solicited me after two years.</p>
<p>As for checks, I’d still take the initial starter package of checks which comes with many checking accounts. Comes in handy when paying off-campus rents, school tuition/fees, or other services.</p>
<p>Cobrat - the student credit card is a good idea. I will talk to DS about this. Since he has a “real” summer job this year, he should at least qualify for a minimal credit line.</p>
<p>Credit union including credit card thru them worked for D. Still there. I believe anybody can make deposit to anybody’s account. Why bank refuse to take money?</p>
<p>Bank does not refuse to take money, however, they often want to be paid for taking money, holding your money or transfering money from one place to another. That is where you have to be careful and watch what you are doing.</p>