<p>We helped our kids open their own account for spending money and any money they earn, with a bank that is convenient to their campus (not our bank). Earned money has not been regular enough to warrant a credit card but I’m expecting that by junior and senior years that circumstance will change and they will get low level card in their own names to build credit.</p>
<p>For kids with a lot of academic experience but limited exposure to the ‘real world’ I’ve found the personal account with ATM debit card a good transitional tool. Our kids are very frugal with their own money; which gives me a private opportunity to chuckle when I think back to the times when my oldest had such difficulty understanding my reluctance to indulge her middle school spending whims…</p>
<p>Our son has a checking and savings account that were set up when he had his first summer job at 16. Similar to another poster, we have online access to all of our accounts including his and it makes it easy to make immediate transfers between the accounts. He also has online access but only sees his two accounts. Even though the bank (PNC) has ATM’s on campus and he has his own debit card, we may have him open a student account at the campus credit union as they have an electronic tranfer program where you can link your home checking account for next day electronic transfers to the students account at no charge.</p>
<p>They also offer a student credit card with a low limit that helps build credit history. On the exiting PNC checking account, I had the bank place a small automatic overdraft line with a low balance warning via text message to his phone. So far, no problems.</p>
<p>For emergencies, he carries an AMEX card linked to our main account and we have not had any problems with the card.</p>
<p>In addition to an overdraft line or a link to a backup account, if your student is going to work on campus, I strongly recommend having them use direct deposit as it really simplifies their banking and assures them of not losing or forgetting about a check.</p>
<p>Good idea to have a bank both you and your son can easily make deposits/withdrawals to/from. This means one with a branch in your town and convenient ATMs for him. My understanding is that anyone can make deposits so you don’t have to be on the account. Be sure if you are on the account is the type he can write checks on without your cosigning- we had to change the kiddie account for this when son was still a minor. Keeping the hometown address means no paying for new checks with every campus move or summer change. College areas are used to students and out of town addresses- a student ID may help and a driver’s license will most likely have the home address so they would match. A debit card could also, but he must not lose it. Wish son had gotten a credit card then, we eventually put him on ours so he could do online purchases although money on his student ID could be used for a lot near campus.</p>
<p>Great thread. Seems like the easiest way to set up accounts involves joint accounts. I’d prefer to stay away from joint accounts. I’m interested in being able to instantly transfer funds from my (Dad’s) account to D’s account, without involving a joint account. D’s account would need a debit and/or ATM card. I know it’s easy to make person to person transfers that will clear in 2 or 3 business days, but I’d prefer the ability to make instant transfers without a joint account. Any thoughts?</p>
<p>I believe you can have an account where you are an authorized signer but not have it be a “joint” account. H & his brother are going to have an account like that–they are the two who are on the account but I am able to make deposits and inquiries about the account. I am not listed on the checks. Is that what you mean, Williamsdad13?</p>
<p>I know this thread spent a lot of time on physical checks, so I might be on the wrong thread, but I couldn’t find a more on point thread. </p>
<p>What I’m desiring is D has her own bank account that allows ATM and debit card transactions and ideally credit card transactions as a back-up (that part is easy), but allows me to make instant transfers from my account to her account. I’m not interested in physical checks. As far as I can tell, the only way I can make instant transfers to her account is if we have a joint account, and I’d prefer not to have a joint account. So I’m looking for banks that may have programs that allow instant transfers from parent accounts to kid’s accounts, without joint accounts. Any help would be appreciated.</p>
<p>I’d suggest you call all the banks where you have accounts & ask them about the possibility of transferring funds to someone else’s account if you’re not named on the account and don’t want a joint account & see if any of them will allow that. Another way to try this is finding out what banks/credit unions, etc. are on or near campus & asking them if any of those places allow transfers between accounts, even if the accounts are NOT joint ones.</p>
<p>For convenience, I had a joint account with each of our kids, just so I could (in theory) move money easily from my account into theirs. So far, have not had to do so, but it was been comforting knowing we COULD do so IF we wanted/needed to. I also had a credit card with each kid–one with S and another with D. I set fairly low credit limits with each, so that I wouldn’t panic if somehow they lost their cards. They have been very responsible with them and only use them as agreed. They now each have other credit cards in their own names as well, which they also are responsible for.</p>
<p>Thanks HiMom - I checked with the “Bank that Says Yes” which allows person to person transfers (defined as transfers from me to D whether she has an account at the same bank or a different bank) but those transfers take 3-4 business days (has to clear through the Federal Reserve). That’s probably fine in 99% of the cases, but I was hoping to find an arrangement, perhaps at an internet bank or BofA, that allows instant transfers from parent account to student account, without it being a joint account. So far, I haven’t found any bank that allows that. I haven’t checked with the credit union yet, and I think they tend to be easier to work with, so I’ll give them a try.</p>
<p>Good luck–I’m sure many will be interested in what you learn. I’m hoping to be able to close my joint accounts at the credit union this spring, after D moves away and no longer a student. It was always nice to have the ABILITY to make an instant transfer, even though in the 4 years S was there and the 3.75 years D has been there, so far we have never needed to do anything immediately.</p>
<p>Good to know that at least your local bank will allow a 3-4 day transfer. That’s not too bad. Our D discovered that she can take several folks to dinner on our joint CC & then have friends pay her so that she can get some cash when she doesn’t have any. She does use paper checks for landlords (off campus) and some utilities, so they have been useful.</p>
<p>My D has an acct with a credit union in her town, I am on her acct, but i also can transfer money from my own acct at a different credit union, online for no fee.
Its very handy.
She does have a few checks, as she needs them for rent, etc.</p>
<p>Most campuses have a bank or atms on campus. Find that one and open an account. 18-year-olds should be able to have their own accounts, but it can be easier to get things done with the account if a parent is on it too.</p>
<p>Our credit union allows me to transfer instantly to the kid’s account, but I can’t transfer anything out without access to her passwords as she’s the first name on that account.</p>
<p>If you want signature permission, but you don’t want a joint account, ask the bank or credit union about setting up a power of attorney just for that account.</p>
<p>If you have fee waiver/special benefit accts, like private banking and premier acct, there is a great advantage in opening up an acct for your kids at the same bank. They will often give your kids the same privilege as you. When our kids travel overseas they do not need to pay for FX or banking fees, and they do not pay any ATM fees when using another bank’s ATM. With direct deposit, online check writing…there is no need to have a physical bank on campus. It is perfectly fine to just give your kid one of your credit cards, your good credit will also transfer to their credit scores later on. There is no hurry in getting their own credit card until they are able to pay for it themselves.</p>
<p>I have a checking account with Bank of America and my son has his own checking account with Bank of America. I can go to my BofA online banking website and transfer money from my checking account to his, instantly. He has called and needed funds immediately more than once, I went online, made the transfer and he just walked to the nearest ATM within minutes and withdrew the funds I sent him. Magic!</p>
<p>For ease, I found a bank with branches in both places. Surprisingly, it wasn’t easy! The bank on her campus doesn’t have branches here at home. Part of my logic in wanting both was that she’ll be home over the summer and will need to be using her account then. I am on the account and have a debit card to the account which has been useful in depositing checks for her. The woman she babysat for last summer still owes her money and gives me checks occasionally, which I deposit into my D’s account. Since I have a car loan from the same bank, my own checking is linked to those accounts from making car payments. I am able to do instant transfers into her account because that connection is already in place. </p>
<p>I also have direct deposit set up to give her an allowance each pay period. Some of that gets transferred into her savings immediately. </p>
<p>It’s kind of amazing to me how it all works. It is also kind of amazing that the ATM at her bank reads checks automatically. I can also take a picture of the check and deposit through the phone app. We have come so far!</p>
<p>Both of my kids opened checking accounts of their own in banks that had branches near home and on their campuses. (It took a bit of research to identify the optimum banks.) I had a few of their deposit slips in case I needed to put money in their accounts. It worked out fine. </p>
<p>But both of my kids were 18 when they started college. Things might be different for a 17-year-old.</p>
<p>If I had it to do over again, I would also have co-signed for credit cards for both of my kids by the time they were sophomores. It’s a good way for them to build up a credit rating, and it gives them another resource to draw on for unexpected expenses. I finally did this with kid #2 when she was a senior, but there wasn’t time for her to build up enough of a credit rating to make it unnecessary for her to have a guarantor when she rented an apartment after college.</p>
<p>Williams…you might want to start a new thread instead of reviving a thread that is well over a year old. That way folks will be responding to your query with current information, and not have to read through pages of outdated posts. </p>
<p>That being said…if you have an account at the same bank as your kiddo, you will be able to transfer funds electronically from your account to his. I get offered this service EVERY month when I deposit into my kid’s Bank of America account.</p>
<p>My son opened an account with Ally. They refund all ATM fees everywhere. It seems to be working out well. He got a debit card through Ally. He still has a joint account with us at our local bank, but since he is in another state without that branch, it did not make sense. I can deposit money to his Ally account just like I pay any bill electronically (not instant). Ally and many other banks also use Popmoney for 1 business day transfers; there is a very small fee for that. He also has a credit card joint with me but has not used it much since he got the Ally account and debit card so he doesn’t have to worry about reimbursing me each month, but it is good for emergencies.</p>
<p>I have an ING checking and savings accounts. My DD (17) has an ING money account (teen checking) linked to my accounts. ING is having a special right now (through Sun night) if you open a new checking account you can get $125.</p>