<p>Guess this is an offshoot of the Visa vs. Mastercard thread--</p>
<p>What kinds of bank accounts do experienced parents out there recommend?</p>
<p>S. has never had anything but savings. He has always been somewhat of a miser, though this will probably have to change in college. We have no idea what textbooks will cost (though I hope he'll have time to track down used ones). </p>
<p>Will keep checking the credit card thread to see what people say. We were thinking of a Visa card with a low limit. Do students today still write checks? My bank issued me a debit card a year ago, but I have yet to use it.</p>
<p>My son's college has an agreement with Wachovia, they are the <em>official</em> bank, for lack of a better description. They have an office in the student center, and kiosks all over campus. Son had a checking account at a local credit union for several years, but the on-campus banking arrangement was a better fit. We got checking and savings (he doesn't need savings but hopefully, one day...), and there's an arrangement involving automatic deposits of FA and scholarship money above and beyond what the university takes, if anything is leftover (nothing is leftover in my son's case).</p>
<p>We set it up so that if he "overdraws" it goes to a Visa, which comes to our house. Not to start any bad habits, but I wanted him to be able to pay bills in a crunch if I didn't have enough time or forgot to deposit money. It hasn't been a problem. The good thing is we have a branch bank literally within 1/4 mile of our house.</p>
<p>He hardly ever writes checks- only to housing and for his frat occasionally. Next year, though, he won't be living in a dorm and will need to write checks more often.</p>
<p>He primarily uses the debit card.</p>
<p>They gave us this really cool duffel/laundry bag when we opened the account!</p>
<p>Bank of America offers a student account, which is an excellent arrangement if you are a BofA customer. (Other banks may offer something similar).</p>
<p>The student recieves a debit card and checking account, which can be linked to your account. You can have a certain dollar amount automatically transferred from your account to your child's account every month (ie., "allowance"), as well as instantaneously transfer $$ via online banking for one-time purchase needs ("Mom, I need $X for this jacket I'm trying on at Gap right now" - voila! the exact $$ appears in their account).</p>
<p>It provides more control than a credit card over your offspring's expenditures.</p>
<p>(I forgot to add that this account is free! if you also bank at BofA)</p>
<p>I'd start by looking at how your student plans to manage his or her finances once at school. </p>
<p>If there is not going to be a lot of money moving back and forth (or not very frequently at any rate) most people want a bank that has a presence on or near campus--at the very least you want ATMs. If it is a bank that is accessible to you that's a huge bonus. Almost all decent sized colleges have credit unions; if that is an option it's almost always going to be a better deal as they don't have as many fees and may cut the kids some slack if there's a mistake and they overdraw.</p>
<p>A few banks offer the convenience of letting customers transfer money online to another customer--for example you as a parent can direct funds from your account to your son or daughter's account at the same bank, and the money moves pretty fast. If you foresee a lot of pushing money to the kid, for example if your plan is to send them money every payday, then that feature may be more important than a bank convenient to campus. </p>
<p>Nobody under 30 writes checks--fewer and fewer businesses accept them. Kids who are not used to managing accounts can get in real trouble juggling checks and debit cards--debit cards are safer as all transactions show up same day online. Checks can float out there for weeks and then swoop in and clear without warning--most kids do not plan or anticipate this kind of thing so may see a balance and think it is theirs to spend. I would either tell the bank you don't want the checks (they charge an arm and a leg for them anyway) or shred them if they won't let you skip them. Checks also present a risk in that they can be stolen and forged. debit cards ride around in your wallet and as long as you keep track of your wallet you are usually OK. If the debit card gets stolen it's not much use without the PIN, so even there it's a little safer. I hope I do not have to tell people NOT to write their PIN on their debit card!</p>
<p>Overdraft protection (linking to a Visa or a savings account) is another feature to look for, as doubleplay recommended.</p>
<p>My kids' bank is the local credit union rather than the campus bank. They can still get cash through the ATMs on campus - usually fee-free if it's part od the 'credit union' network ('Star' or something).</p>
<p>They should get a credit card - either Visa or MasterCard (there's really no practical difference between them). If they'll end up studying abroad or traveling on their own, they should make sure their credit card will work in the ATMs of the foreign country or elsewhere. At their credit union, my kids needed to get a checking account to enable this. They end up needing a checking account eventually once they're more on their own (off-campus housing).</p>
<p>Thanks, everyone.
There is a Bank of America near his campus (with ATMs on campus), as well as one in our town here at home, so we'll probably go with them. He currently has his savings at Chase. We should probably just take it out and start fresh at BOA. Am now wondering if I should start a small savings account there too, in the case he ever needs some sort of backup from us.</p>
<p>My daughter stayed with our local bank even though it didn't have a branch anywhere near her college. She used her debit card when she went shopping and always got ten dollars or more extra so she wouldn't have to pay atm fees. Her college paycheck was direct deposit. If need be we could easily deposit money in her account. We did not look at her statements or really have any idea how she managed her money. She's frugal, worked out fine.</p>
<p>Our son got a Wachovia account since it's the main bank at his college. Coincidentally, my husband and I had also decided to change our joint account to our local Wachovia so we are able to move money into his account if need be. He also got a credit card with them when he signed up. I almost wish he had just gone with a Capital One card instead though, because there are no perks with his plain jane Wachovia card. He may still do that. Son is very frugal and left college with more money then he started with due to his campus job. We also don't look at his statements. </p>
<p>If either overdraws, then they can feel the pain and will think twice the next time. So far, no problems. Oh, except for the time last year when son thought he paid for his books with his debit card (but really used his credit card) and when the bill came he paid the "minimum payment" because he thought that meant that's all he owed. Fortunately, I read the statement back to him when he showed it to me and he hustled to pay the full balance. One more bank lesson learned.</p>
<p>lspf, you don't have to be a member of a bank to deposit money. Just use your son's deposit slips and you can easily put a check or cash into his account. If you used cash there is no reason it wouldn't be instantly credited.</p>
<p>She might want to have a savings account at the same bank so she can have overdraft protection and just to make banking easier by having it all at the same place.</p>
<p>UCLA_Dad-are you thinking of a debit card? Using a credit card at an ATM will incur ruinous cash advance fees and many card companies charge a higher rate of interest on cash advances as well as no grace period on cash advances so interest starts piling up right away. </p>
<p>Visa or Mastercard branded debit cards will work in foreign ATMs--if a kid is traveling just make sure they have money in their bank account to access when they need cash while traveling, and confine credit card use to purchases like meals, hotel bills, airfare, etc.</p>
<p>Yes - I was suggesting a debit Visa/Mastercard that will work at foreign ATMs rather than doing cash advances. </p>
<p>We ran into a problem whereby my D had a debit Visa but it worked with her savings account and she didn't have a checking account (she didn't really need one at the time). We found out, only after she arrived in Europe on a study-abroad, that her card wouldn't work over there even though it'd work at almost any ATM here. After calling the credit union and going through a few people, I finally got to someone who said she'd need a checking account in order for it to draw properly - something to do with the way foreign ATM transactions are cleared through some other bank (Citi I think). I was able to get one setup for her right away since I was also on her account and she was able to get cash after that point. It was dicey for a day or two though when she was down to almost no cash. </p>
<p>The bottom line is to make sure to ask the bank or credit union to positively confirm that the card will work in foreign countries. Also, before going to another country, contact the bank and let them know the dates and countries of travel to ensure they don't put a block on the card for suspicious activity.</p>
<p>I have a savings account, a CD, and a checking account with a debit card from a local bank at home. Unfortunately, there are no bank chains that are both near home and near school. I will switch to Citibank, which is close to college, this year. I will drop my CD once it matures since there are high yield savings accounts available at Citibank with the same interest my CD was getting (around 5%). </p>
<p>I've never been a BoA fan, but if your son's transactions will be limited and simple it should be fine for the college years. You can deposit money into his account no matter what the bank is--you just can't withdraw money. Your son can wait until he's on campus to sign up with a bank. That's what most students at my school do. He'll want to check that the ATMs that he will be using most frequently will be free for him with BoA. </p>
<p>I write checks when buying textbooks sometimes, but most people don't use them. Almost everyone I know uses a debit card.</p>
<p>If he has been working a lot and has a lot of money (say, >$10,000) then he should look beyond student accounts. He may be able to find an account option that would offer him a lot of perks and freebies beyond a student account if he qualifies.</p>
<p>USAA banking reimburses ATM fees for up to six (I think) transactions per month so it doesn't matter what the local bank is. Our son will have a credit card as well so he can buy airline tickets on line himself.</p>
<blockquote>
<p>Do students today still write checks?<<</p>
</blockquote>
<br>
<p>Judging from my D's use of checks--no. She gets $$ from the ATM and charges with the credit card. No savings account--overdraft protection through the credit card. So far, no problems with overdrafts. No ATM fees since the bank ATMs are very close to campus.</p>
<p>She got the B of A Campus Edge Account through our local B of A--checking, ATM, credit card. We're also B of A customers and the ability to transfer $ into her account from our home computer is PRICELESS!</p>
<p>Both of my kids have Bank of America accounts (note...we parents do NOT...so I'm not selling B of A in general). The B of A college student account is free, and includes checking, savings, debit, and credit cards, and free online banking. My kids do ALL of their banking online, including paying their credit card bills. We have found this arrangement to be terrific. Because B of A is all over the country, we can just make deposits here for the kids, and the money ends up there. These accounts are theirs only. We still maintain a savings account here (at our bank) that is parent as primary holder/students secondary which is where most of their job earnings are deposited, with money moved around as requested by our kids. The B of A accounts are free for the duration of undergrad study, and DS is currently looking into whether his grad study will entitle him to continued no cost banking.</p>
<p>D is attending a college fifteen hundred miles from home and spends considerably more than $500 on books each semester, so her experience may not apply to all students. She has the B of A student package (checking account, savings account, credit card and debit card) and she has used them all. Statements come home.</p>
<p>In case no one has mentioned it, an account with e-banking is important for my son. It allows him to know his checking account balance instantly since he never has to write a check and it fits into his geeky life style. And I just got a check from him and it looks very official and impressive.</p>
<p>Hey, he even got me to begin e-banking within the past year.</p>
<p>Orignaloog, don't all banks have e-banking? Perhaps I don't know what that means. I pay all my bills online and check my balance on-line. Is that e-banking or is there more to it?</p>
<p>My kids (17 and 20) both have student checking accounts with Wachovia. They use their debit cards all the time. I don't believe either of them has ever written a check for anything! Accessing their accounts online is really easy so they/we can keep a close check on their balance and we can make online transfers into their accounts easily (like for purchasing books).</p>