Every student needs to have a bank account to deposit the side gig job salary to just keep your savings. Let me show you the best student checking accounts that you should consider.
Choosing your bank account is always an important decision. Banks hold your money while offering different benefits and plans and can help you manage your life.
With all of this, it’s quite the no-brainer that choosing the right bank for you can be very useful and crucial to your finances and lifestyle. However, settling for just one can be very challenging with all the different benefits, such as interest earnings (APY), ATM availability, minimum balances, and more.
But don’t worry! Here at Financial Wolves, we’ve picked 6 of our favorite bank accounts for a variety of needs, such as investing, saving, checking, or more!
But before we do that, let’s define some common terms you’ll see throughout this article that you may be unfamiliar with.
What is APY in Banking?
APY is the interest rate on an account. An APY of 0.01% means that if you have $50,000 in the account, at the end of the year you’ll get a free $5 to account for inflation. Some banks have a higher APY than this. For example a 4.35% APY with $50,000 in the account means you’ll get an extra $2,175 at the end of the year.
What is an Overdraft Fee?
An overdraft fee is the fee paid when you take more money out of your bank account than there actually is. For example if you have $20 in your account, but withdraw $35, you’ll have a bank statement of -$15. The bank will give you this “free money” but you have to pay for it in the form of an overdraft fee.
Minimum Balance Requirement
A minimum balance requirement means that you need to have a monetary amount above a certain threshold in order to avoid fees or penalties. Let’s say a bank has a minimum balance requirement of $1,500. If you have only $1,335 in the account you will get fees from the bank.
Now that we have some of the harder vocabulary defined, let’s get into the 6 bank accounts!
Chase Total Checking
Chase Checking Accounts are great options if you’re looking for a checking account.
They offer benefits such as:
0 – 12$ Monthly Fees
Fee Free ATMs
Access to Direct Deposit
Chase Bank Mobile App
However, some downsides include having no investing options, a 1500$ minimum balance, and a low 0.01 – 0.02% APY. Chase Bank also has a 34$ overdraft fees and a 3% foreign transaction tax.
Overall, Chase is a great option for a checking account however, if you plan on saving short-term or long-term, it might be a good idea to consider a different account with a higher APY and fewer fees.
Capital One Performance Savings
Capital One’s Performance Savings account is a savings-based account with high APY and very few fees, making it an excellent option for those who plan to save long or short-term.
They offer benefits such as:
4.35% APY
No Monthly Fees
No Overdraft Fees
No Foreign Transaction Fees
Fee Free ATMs
Capital One Mobile App
0$ Minimum Balance
Direct Deposit
There weren’t many downsides other than the fact that the Capital One Performance Savings account cannot be used primarily as a checking account, meaning that it cannot be used for daily spending.
Overall, Capital One’s Performance Savings account is an excellent choice if you are looking for savings with high interest and very low fees. However, if you want your daily spending, you might want to try and look for another checking account.
Sofi Savings Account
Sofi’s Savings Account is an account meant for saving and gaining interest over time, which means that it has a high-interest rate and payout for those with long- or short-term goals.
They offer benefits such as:
APY up to 4.6%
No Monthly Fees
No Overdraft Fees
No Minimum Balance
Fee Free ATMs
Sofi Mobile App
Direct Deposit
Few Free Checkbooks
Sofi offers many benefits; however, similar to the Capital One Savings account, it cannot be used for daily spending and has a 3% foreign transaction tax.
Overall, Sofi is an excellent savings account option with its numerous benefits and high APY rate. It is highly recommended for those wanting to save for long and short-term goals.
Fidelity
Fidelity’s accounts are often meant for investing and purchasing stocks with the money you have in your account. This makes it an excellent option for those who want to invest and make smart choices with their money in the future.
They offer benefits such as:
2.7% APY
Investment Options
Fidelity Mobile App
Fee Free ATMs
Direct Deposit
No Monthly Fees
No Minimum Balance
It offers many great investing opportunities but has many downsides, such as 1% foreign transaction fees, $10$ continuous overdraft fees, and no free checkbooks.
Overall, Fidelity is a great option if you plan on investing and purchasing stocks in the future. However, it cannot be used for daily spending, so it is recommended to have a separate account for such purposes.
American Express High Yields Savings Account
The American Express High Yields Savings Account saves money over time with high APY rates and many benefits. This makes it an excellent option for people looking to save in the long or short term.
They offer benefits such as:
4.35% APY
No Monthly Fees
No Overdraft Fees
Fee Free ATMs
AmEx Mobile App
0$ Minimum Balance
Direct Deposit
It offers minimal downsides as it cannot be used for daily spending, has 2.5-2.7% foreign currency fees, and has no investing options.
Overall, the American Express High Yields Saving Account offers great savings opportunities. However, as it is a savings account, it should not be used for daily spending, so it is recommended that you have a separate account alongside this one.
Discover High Yield Account
Discover is a great option for a savings account if you’re looking for a high-interest payout. Its high APY allows for long-term and short-term saving goals.
They offer benefits such as:
4.35% APY
No Monthly Fees
No Foreign Currency Fees
No Overdraft Fees
Fee Free ATMs
Discover Mobile App
Direct Deposit.
Some downsides include that it cannot be used for daily spending and has no investing options.
Overall, the Discover High Yields account is an excellent option for a savings account as it has little to no downsides and a great interest payout alongside minimal fees. It should not be used for daily spending as it is a savings account, but it is great for saving goals.
FRQ
Bank accounts have much to offer, but you likely don’t need everything. The two main points that banks offer are saving and spending. These two types of accounts are categorized into checking accounts and savings accounts.
Checking accounts are used for spending and splurging. With a checking account, you can make payments with debit cards, pay bills, withdraw cash at ATMs, send money online, and more.
Savings accounts are used for saving money and earning more through APY or interest. Sometimes cash withdrawals can be at limited times per month by the bank. This money is saved and can be used within a few years or saved long-term for investments, college funds, or retirement.
Brokerage accounts are used for investing your money into stocks, bonds, mutual funds, ETFs, and other financial assets. The account cannot often be used for daily spending or withdrawals. Oftentimes, these accounts are used for long-term investment goals or short-term investments.
I run a online blog about finance. We are trying to make media content for our blog and this is a blog post where we are comparing some of the best choices for opening a bank account for beginners who lack knowledge about the topic. We want to tell people what the strengths and weaknesses of these accounts are. The video should be about 8-9 minutes, the background music should be engaging but also informational and professional. I want a young male voice that sounds professional and bold. Keep the language easy to understand. I will attach the blog below, be sure to make it into a video format.
The bank accounts I want you to cover are:
Chase’s Savings Account
Capital One’s MONEY Teen Checking Account
Sofi Savings Account
Fidelity DIY Investing Account
American Express High Yields Savings Account
Discover High Yield Account
Compare these accounts using these factors:
APY
maintenance/atm fees?
foreign transaction fees?
overdraft/nsf fees?
Do they have fee free atms?
Do they have a mobile app?
Whats minimum balance?
Allow direct deposit?
Contain investing options?
Give Free Checkbooks?