Choosing a first bank account

A checking account gives your aid refund, paychecks and bills one place to land. This page sets out what to compare before you open one, so the account fits the way you actually spend.

Banks, credit unions and apps

Banks and credit unions both offer checking and savings accounts. Deposits at banks are insured by the FDIC and deposits at credit unions by the NCUA, up to limits each agency publishes. Many campuses have a credit union open to students, and joining usually takes a small deposit into a membership savings account.

Some phone apps offer accounts through a partner bank. Check the app's disclosures for the name of that bank and whether your money is held in an insured account, since the insurance applies once the money reaches the bank.

The fees to look for

Monthly maintenance fees are the first thing to check, along with what waives them, such as a minimum balance, a direct deposit or student status. Ask whether the student status ends at a set age or at graduation, because the account may then switch to one with a fee. ATM fees add up too, so look at where the bank's own machines are on and near campus.

Overdraft fees can add up quickly, since each one is charged per transaction. Federal rules require banks to get your permission before charging overdraft fees on ATM withdrawals and everyday debit card purchases, so you can decline that coverage. Accounts certified under the national Bank On standards are designed to avoid overdraft fees altogether.

Compare these before you open an account

• Monthly fees and what waives them
• Overdraft settings and fees
• ATM locations near campus
• FDIC or NCUA insurance

Opening the account

Expect to show a government photo ID, a Social Security number or ITIN, and a current address. Students under 18 may need a parent or guardian as a joint owner. A bank can turn down someone with an unpaid balance on an old account, and many offer a second-chance account for that situation.

Set up online access and low-balance alerts once the account is open. Alerts are a simple way to catch a problem before it turns into a fee.

Where your school refund goes

Your school may offer a card or account through a partner company for aid refunds. Federal rules require the school to give you a choice, so you can send the refund to an account you already have instead. Read the fee schedule the school publishes for that option before choosing it.

Direct deposit to your own account is usually the quickest route. Your bursar or student accounts office can explain how to set it up.