<p>How do bank account set-ups occur when you're moving across the country to attend college?
D turns 18 in summer. She'll be going back East to college. Her West Coast relatives, where we live, will be releasing to her in summer an UGMA CD to help with college expenses. I currently have a small custodial account for her with my own bank, so I believe that the $ can be immediately deposited in our West Coast institution. But then there's the matter of transferring it to the East, since she'll need local access & a local address on any checks she writes.</p>
<p>Do families in this situation merely wait until the student moves back East? (I'm traveling there with her to see her off. -- Don't laugh at the comment; some parents do not.) Do you just plan some extra days to set up things like a bank account, etc.? And she has a passport & current h.s. I.D., but will she need a local "Drivers' License" type I.D. in Connecticut to set up a bank account? (She does not have a current DL, & won't have one anywhere for some time.)</p>
<p>None of her college funds will be tied to mine. That is not even mainly for some strategic purpose; it is merely reality, as there are no other college funds for her other than the college's finan. aid & the UGMA.</p>
<p>DS goes to college in a different (but neighboring) state. He has all of his accounts in a national bank (Bank of America). There are branches here, and branches there. His checking account has our HOME address on it. He has no trouble cashing checks. His statements get sent here (our address doesn't change from year to year...his does). He has a drivers license from home and votes here too (by absentee ballot). I would suggest looking into opening an account at a bank that has branches across the country. That way you can transfer funds into the account where you are, but your daughter can access them at college too. If that isn't possible, get a bank check before you send her off to school and have her open an account where she goes to college.</p>
<p>Our D, who was 16 when she started college this fall, has an account that we set up when she got to school. I did go with her and had to sign for the account with her since she was not 18, but we set it up at orientation where lots of the local banks had tables just for that purpose. She also has an account out here which we can transfer money into in an emergency.
You can often set up an account with a nation-wide bank, but for us it was easier to do it there. You just want to make sure that there are free atms that the student can use.</p>
<p>Mini is right. The colleges DO have these bank tables at orientation. Check for a college student type of account. DS's has NO FEES (none at all) for four years of college. He has unlimited in network ATM use, a Visa card, a checking account and a savings account....and free online banking for the duration of his college years. I'm sure the bank is hoping that he will stick with them when he graduates!! Those monthly fees can add up, so try to get something with no fees.</p>
<p>If its a national bank, then opening and transferring an account is simple. But, check with the school to see what bank(s) is(are) local, and which are close to campus. National banks do not have a branch in Ithaca, NY, for example, or if they do, they branch is not within walking distance. You can then call the branch and explain your situation, and they can mail you the forms to complete to open a local checking account. Due to federal banking and security rules, however, you/she will likely need to be onsite to present ID to complete the process. Most college town banks have done this many times, and will not require a local state license.</p>
<p>If the funds are deposited to her west coast account in July, assuming you have signing authority on her account, you could wire the funds to her new account at school (wire fees ~$15) later in the summer. You'll just need the account number and ABA routing number of her new east coast bank. If you don't have signing authority, she can add you as a signer</p>
<p>In my experience, the local banks will be lined up with deals for the incoming students. You may want to see which has the best deals, which branches are the most convenient (ie have an atm in the student center) and all of that other business before committing. You can get all your ducks in a row before coming to the school so that the transfer is as easy as possible including maybe $500 in cash or travelers checks or bank check so that when you open the account there is some readily accessible money before transferring the whole chunk of change.</p>
<p>mini, thumper, bluebayou, & jamimom,
Thanks for all the info. I think my greatest concern would be SAFE accessibility. I've heard mixed things about New Haven, so I'd be concerned about an off-campus-only availability if the neighborhood is not safe where the bank branch is. (She would have to rely on public transportation and/or walking off campus.)</p>
<p>Wonderful news about the "deals" & the tables, though. I assume whoever mentioned the Visa card, that would be ATM card not straight credit, right? D is a saver, not a spender, but I know that college kids can be exploited by the credit companies & banks.</p>
<p>Epiphany, my son may be going to Yale as well. Though I have a nephew and future son in law at the Medical School, I have no idea what the most convenient way to have accesibility to funds at Yale would be. Most colleges, and I would assume Yale to do the same, would have an ATM or even a branch right on campus in a very secure, very convenient location with tables set up with deals when you drop your daughter off for college. I have opened accounts this way at a number of collegesfor a number of my children and I really go for the on campus option rather than the "deal" as safe accessibility is my primary concern as well. And many of the schools are not as big as Yale. So I would wait until I see what the situation there is. I may even see you there!</p>
<p>Jamimom,
It would certainly be a kick to meet CC parents in person some day. Orientation would be the perfect time!</p>
<p>I also vote for an on-campus banking option. And since my D will hopefully be mostly funded, much of the account situation is handled internally via the college accounting office, so that mostly her banking needs would be instant cash and an occasional deposit of a gift check, for example. Because the winter weather will be something of a preparation adjustment (with respect to off-campus transportation, for example), I'd just as soon that her first year there be as uncomplicated as possible. (I do not see us having a lot of disposable income + time to visit Conn. prior to next summer.)</p>
<p>I thought we were safe with BankAmeica account, but not closest one. Anyway, account can be opened online. Post on the college section for nearest bank.</p>
<p>My son goes to school in the Midwest and we opened an account for him on line at
a bank that had a small office and ATM machine on campus; we did this before school opened. However, there was ample time -- and long lines -- to do this once the kids moved in. If I recall correctly, this was linked to his University ID card. I also think that Illinois law requires kids to be 18 or 19 years old to have their own checking acct
There was a way around this -- but don't recall the solution -- as many of the kids in line with us were younger than my son who was 19 at the time. Sometimes the school has info on its Web site about setting up accounts. This past year was a pain cuz the University changed its ATM account to a different bank so son had to go through this all over again plus close out old account. Don't forget that out of town checks -- from you -- take 5 or so business days to clear.</p>
<p>I'd opt for a bank with an on-campus branch or ATM. Apart from that, I'd also be nervous about depositing tuition, room & board money in the same account for books and mad money. If the UGMA CD is more than a few thousand, I'd probably put it in a 529 account - so you know it's going to be there for tuition. Plus, your relatives may be able to get a tax credit. The school can automatically take money out of the 529 and apply it to your student's account.</p>
<p>Our S's only 17, so his checking account is really a subset of our family account that, after several rounds of acquisitions, wound up with a West Coast chain that doesn't any branches where he'll be going. We'll probably set up an account with one of the three banks the school lists as having branches on campus and work with his student ID.</p>
<p>In our case this will only be for pocket money. We'll be paying for tuition and everything else through a credit card, paying the balance off immediately. Points, don't you know. :D</p>
<p>topcat,
I don't know what a "529" is, but I'll investigate. I can assure you, though, that I want the relatives as far away from the process as possible. In no way do I want it to look (inaccurately) as if my D is tied to any adult, including me, as a financial dependent. As to "tax credits" [for the relatives] I similarly want no one claiming my D as their dependent for tax purposes. This spells big trouble for continued financial aid in the 3 following years. My D is legally entitled to the UGMA on her 18th birthday, in full. (Technically, the recipient need not even use it for college, but of course, she will!)</p>
<p>You bring up a good point, though, about a separation between personal expenses & school expenses. I can't even imagine how that works when one is getting mostly aid (such as when the college pays the tuition internally versus giving it first to the student, then being paid; I think the former is the way it's handled).</p>
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<p>I assume whoever mentioned the Visa card, that would be ATM card not straight credit, right?>></p>
</blockquote>
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<p>Actually, no. DS has a debit/ATM card (which he uses for ATM purposes only), and a separate VISA card. Folks here are correct. The account your student uses should NOT have tuition/rb/fees monies in it. That account should be for student expenses only, in my opinion. We keep the tuition money in a separate account here at home, and when the bills come (we do the 10 month payment plan) we pay them.</p>
<p>My daughter has a VISABUXX card, which we got her over the internet. It works as both a credit card and an ATM card. But the money has to be put into it beforehand (by us) in order for her to use it.</p>
<p>We (parents) bank at Bank of America on West Coast--D is going to school on East Coast. During the summer, she set up a B of A student bank account in CA (complete with no fees for 5 years, checks, ATM card and VISA card). ATM located close to campus is used to extract $$. She ordered new checks with her East Coast address on them once she got an address. Her bank statements come to our home address, but she accesses her bank statements on line so doesn't really need the paper copy. She also pays her monthly bills online (basically the credit card). </p>
<p>She doesn't write many checks at all--transactions with local merchants are either done with the debit card, credit card or cash. So local bank account hasn't been a necessity.</p>
<p>Best thing I like about the B of A system is that I can transfer $$ directly into her account online--great way to make sure she gets her allowances on time.</p>
<p>Others from her school set up their B of A accounts on the move-in weekend. No fees for students. Parents wrote a check to fund the account that the bank would deposit on the following Monday. Didn't seem to be a hassle--the banks are set up to take care of the same kind of "student problems" that occur every year.</p>
<p>I watched my two boys with some amusement and some frustration as the two of them made about 5 trips (maybe 4) to open up an account for the 17 year old. Due to 9/11 there have been some strict rules set up in opening up an account. When they set up the account, they put some $400 dollars into an account that had a hefty monthly fee if the minimum balance fell short. The perk was unlimited checks but I doubt a 17 year old would write many checks anyways. So with some kids it is worth taking a look at the deals and halping them pick the one most suited. </p>
<p>The local banks will be out in full force with the deals but I always set up an account at the one with a branch righ on campus with an ATM right in the student center for safety and convenience issues even if it meant a bit more of a cost. Sometimes the best way to go is to set up one of these convenience accounts and keep the local account. The student can they budget himself by writing a check from the home account to the school account every month giving himself a weeks leeway for the check to clear. And if there is a true money crunch the ATM fee to access the away account from a local ATM is usually minimal. As long as it does not become a regular thing it is truly residual cost. </p>
<p>Many kids have problems contrulling and keeping account of expenses away. My niece and boys were great. My D did go over budget and still has some spending issues. This can be a learning experience for them. I know I had problems budgeting for many, many years, but most acutely the first year I had a "real" job. Many people never learn to manage money, so it is a lifetime gift to teach your kids the skills for budgeting and money management, though they may not immediately apply those basic tenets. At least they will have a sound process in mind should they choose to go that route.</p>
<p>Second the use of the university credit union. My son from the east coast uses the USC credit union. I have it set up so that they automatically take a certain amount out from my checking account and deposit it in his account. He uses a debit card to access his money. Works fine except when he runs short and I have to wire him money; they're a fee involved.</p>