Student Bank Account
A student bank account often includes a free debit card, free online banking, free bill paying, tuition insurance protection, bank rewards when using a debit card to make purchases, and does not usually include any monthly maintenance fees. Most banking institutions have online access that allows the user to manage his or her account online. This would include access to transactions, balances, and make transfers between a checking and savings account. Some institutions have a way for the user with a student bank account to pay their bills online and some sites work with financial software making it easy to import numbers into a budget, spreadsheet, or bank reconciliation program. A young Christian can find the best options when it comes to banking by doing some research and then pray and ask God for wisdom, "That the God of our Lord Jesus Christ, the Father of glory, may give unto you the spirit of wisdom and revelation in the knowledge of him" (Ephesians 1:17).
Proving one's identification is important to all financial institutions for opening an account. To do so requires at least two forms of ID with name and address, and social security number or tax ID number. A student bank account requires proof of attendance in school. Financial institutions might require additional documentation from someone who is from another country. Banking in another country may be necessary for a student who decides to go to a college outside his or her own country. A person opening up a checking or savings would need to take personal identification documentation to the institution upon opening the account. Some banks scan the documents into the computer while others may just make a copy of them to keep them on file.
A student would do well to choose a financial institution that is convenient and near campus. Choosing one that has online banking would be smart because doing so will give the student access to his or her account 24/7. Opening a student bank account with a debit/credit card is important because it can be used to make withdrawals from an ATM or to make purchases. Having access close by will especially come in handy if the account holder does not have transportation available or has limited funds to make a car payment or pay for fuel. Some universities have credit unions where students can do their banking close by. A credit union is nonprofit and owned by its members. With a credit union the members benefit from the profit whereas with a financial institution the shareholders benefit.
A free debit/credit card makes it convenient for students to do their shopping online especially if they do not have transportation to get to retail establishments. A debit card is normally a perk with a student bank account but some banks charge a small monthly fee to have one. If by some chance the user can not acquire a debit/credit card he or she may choose to get one through one of the retail establishments that offer them. Places that offer debit/credit cards will usually cash payroll checks for customers and allow them to load cash upon the card. Students will need to keep a minimum balance of a specific amount to avoid a monthly maintenance or service fee.
Free online banking and bill pay is a common perk that most banking institutions provide for their members. Libraries located within universities normally have plenty computers with Internet access for students to use and some even allow them to print for free. Online banking can be especially useful for the person who has a student bank account because of the need to know the available balance. Bill pay allows the user to pay their tuition or other creditors where the funds are immediately sent out using money available in the bank and provides a valuable record of the transaction. Using online bill pay allows students to look at transactions in one place so they can easily see who has been paid and what else needs to be paid.
Tuition protection insurance as a perk with a student bank account is there to cover any losses when illness or injury occurs and the student can not complete the class. Most insurance companies that offer this coverage will reimburse 100% of tuition and fees for students who are forced to quit a class for emergency reasons if it happens before the class begins. The policy is not usually set up to reimburse in a situation that is not considered necessary. Not having this coverage could be financially depleting if this type of situation occurs several times because tuition is not cheap. The amount of reimbursement will vary depending upon when the withdrawal of the class actually occurs.
Some things to consider when choosing to open a student bank account include the amount if any for service fees, how much money it takes to open the account, if the banking institution provides the user with a free debit/credit card, and other perks including bank reward programs. Banking institutions may offer some additional perks to gain new business including rewards for making purchases with a debit/credit card. Other perks might include overdraft protection, a checking account that accrues interest on the balance, and free personalized checks. Being employed a student may wish to take advantage of direct deposit. Using direct deposit will make it much easier for students who are attending college full-time and trying to hold down a part-time job. For students who need assistance in making financial decisions they can go to their financial counselor at their college or look up a financial advisor elsewhere.
Second Chance Bank AccountA second chance bank account was the wish and hope of the woman standing outside a check cashing store on a cold winter morning. Every two weeks, early on Saturday morning she would stand in line and pay fifteen dollars to get a payroll check cashed, and then buy money orders to pay bills, always at least eight dollars. This is the plight of all consumers who have lost the needed services of a local lending institution and must rely on alternative and expensive means by which to do their financial errands. For this woman, there is the additional danger of carrying cash home in a pocketbook and being mugged on the way. Three months earlier, the woman's banking privileges had been frozen by three overdraft checks happening in six weeks time. Unexpected medical issues had caused her to try and kite the co pays, but in each case, they got to the lending institution before her paycheck was deposited.
That's one of the no-no's that ChexSystems and Telecheck report to 80% of all banks in the United States when they occur. Immediately, these thousands of banks then stop any opportunity this woman has of finding another lending institution that will allow her to do business with it. When individuals kite checks, have overdrafts, give false information to the lending institution, and abuse ATM cards, the report goes to these two reporting agencies, effectively ending someone's chance at using another bank. Yes, there are still twenty percent of banks that do not use this reporting system and thereby would take the woman as a customer. But these banks do not advertise their non cooperation, and thus become very hard to locate. And should one bank in the area allow her its services, the location may be clear across a metropolis so she needs a second chance bank account.
For those who have never been denied banking services, imagine the hassle and perhaps even danger that could be faced; carrying around a lot of cash, having to hide savings inside that stuffed Santa in the attic, standing in line having to get money orders and pulling out that wad of money in front of leering eyes. Most of us take this all for granted but eight million people right now have had the opportunity of a second chance bank account. Many others probably don't know they exist. Maybe finding such a 2nd chance bank is difficult but getting God's attention isn't. "Then shall ye call upon me and ye shall go and pray unto me and I will hearken unto you and ye shall seek me and find me, when ye shall search for me with all your heart." (Jeremiah 29: 12, 13)
Incidents that happen at banks and reported to these two agencies are kept in the offender's record for five years. This makes life very difficult for those who are trying to get their reputations back. But these agencies aren't as difficult to work with as the large credit reporting agencies that administer credit reports. Telecheck and ChexSystems do work with customers who want to get their accounts cleared. If the offended bank, the reporting agency and the customer can get together on repayments and restitution if needed, life can get back to normal with a second chance bank account. And if that is not possible, for a nominal fee, these agencies will share a list of all the banks in the US not using their services and could thereby offer a second chance bank account.
When a brick and mortar bank within a convenient distance cannot be found, the best alternative is an online bank that will provide a second chance bank account. With no physical buildings to be maintained and a much smaller staff to employ, online lending institutions can offer most or all of the same amenities that the ivy covered ones do. With lower overheads, these banks can offer 2nd chance bank accounts to any who need them. The reason for this welcome mat is the lack of association with the two reporting agencies. As far as the online banks go, there is no such thing as Telecheck or the other guy either. Thus a customer can have a seamless foray into the on line's services.
For the woman at the beginning of the article, she found in her new online second chance bank account the joy of having direct deposit again, with no fear of carrying cash around. The woman had never had an ATM card, and found a debit card to be a real convenient way of paying for items without carrying cash, but the real joy of the woman's new experience was online banking. With the money she was saving from check cashing and money orders she was able to purchase a computer and found out how convenient it was to do all of the banking online, including all bill paying. The fear of an overdraft was gone because the lady was not allowed to pay bills when the money was not in the account, and the convenience of having the ability to slip money into her savings account with a few mouse clicks actually encourage the woman to start saving on a regular basis. Of course the young mom would miss the long lines at the drive up on pay day and the chance to hit those honking big posts that guard the vacuum chute, but sleeping in on Saturday and paying bills on her bed with her second chance bank account made up for it.