<p>Hi, I'm currently a senior in high school, and I would like to open a checking and/or savings account, as many of my friends have done, in which I can keep all of the various and sundry funds that I've acquired through the years, such as those that I've made from tutoring my friend. </p>
<p>Right now said funds are in part kept on me in cash, and in part kept in my parent's bank accounts for the time being, but I really like the prospect of opening my own bank account to consolidate those funds into a nice, secure place, where I won't have to think about them.</p>
<p>Because of the whole dealio with financial aid programs penalizing applicants based on student assets, my question and dilemma is this: what is the threshold at which the money I have in my bank account begins to become a detriment to my chances at financial aid? How much can I deposit into a savings account before my eligibility for financial aid begins to take a toll?</p>
<p>I know based on cursory research that student assets result in something to the tune of -20% financial aid, but based on that, how much is safe to keep in a savings account under my name? $2500 (for example, the minimum balance to avoid monthly fees for a Bank of America personal money market savings account)? $3000? $4000? Etc. Or can I only have like less than $1000 if I don't want it to greatly affect any financial aid I get?</p>
<p>I've tried researching this, but I can't seem to get a definite answer as to what amount of money, if any, is a good idea to having in a savings account as a student, so any answers you guys can provide would be greatly appreciated. Thanks!</p>
<p>2500 (for example, the minimum balance to avoid monthly fees for a Bank of America personal money market savings account)? $3000? $4000</p>
<p>Oh good heavens…find another bank! There are a number who have student accts that don’t require minimums…or see if you qualify to join a local credit union because you live in the city or your parents work at a certain place…no minimums, no fees.</p>
<p>You have to report your savings on the day you file FAFSA. Unfortunately (and stupidly) there is no asset protection for students. So a portion will go towards EFC. Some avoid that by making large purchases before that time…car repairs, a computer, etc.</p>
<p>However, if your parents’ income is high, and you’ll already have a high EFC, it may not matter.</p>
<p>It doesn’t matter if your money is in a shoebox or in a bank. You still have to report it as an asset on the financial aid application forms.</p>
<p>I would suggest looking at a credit union. OR if your parents have an account at a bank, see if they can open an additional account at no charge…and list you as a co-owner of that account.</p>
Thanks for the advice! The savings account I wanted to open just happened to have a $2500 minimum balance; it wasn’t necessarily the lowest-tiered one. There are savings accounts with very low balance requirements, but in turn have low interest rates. And yeah, I’m aware that interest is really negligible because I don’t have a ton of money. I was just curious, though I’ll definitely look into a credit union.</p>
<p>
My parents actually have a rather low income. Most of the money I have didn’t come from them, but that’s a story for another time.</p>
<p>
No assets at all? Not even a checking account with $100 in it? The reason I ask is because I see a lot of my friends doing that, and it seems pretty convenient, and a lot safer than keeping on my person.</p>
<p>
Yeah, I know that. But I can have my parents keep it in their bank accounts (which might be smarter than me keeping it in a shoebox), and they can shield some of their assets. But I’d much rather have it in my own bank account, but it seems like that would ultimately be to my detriment.</p>
<p>The interest rates on everything are so low that it really does not matter at all especially on that amount of money. The online only banks (like Ally) offer slightly higher interest rates but I’ve heard their support is not worth the differential.</p>
<p>People tout credit unions but you cannot replicate the service and availability of the big banks that support your geographic area. If you can get a free savings account, I’d go with one of the big banks with a physical presence.</p>
<p>There are several banks that have good service and no/low fees. Several are large national banks, like TDBank. BOA, Citibank, Chase are really overpriced especially for a very small account. I have my money in Amalgamated Bank, mostly local to the NY metro area: no-fee checking and free ATM use at any McDonald’s and many other locations. The bank was founded by labor unions (the Amalgamated Clothing Workers) and has a very progressive, depositor-friendly policies.</p>