I deposit the very, very few checks I get electronically. I just use my CU’s app.
Most CUs have the same account types that banks have. I have both a checking and savings account through mine.
These days, unless you have certain special needs, with online banking you can bank from anywhere due to online bill paying and online deposits including paper checks through smart phone apps. Just read the print and check fees, make sure they reimburse ATM fees. The benefit to an account with a firm like Schwab or FIdelity is that as you mature and develop savings, the firms offer a full array of investment products like mutual funds, discount brokerage, etc. It becomes one stop shopping.
The only time I’ve stepped into a bank in the past 5 years is for notarization services.
OP, can your parents open you a student checking account linked to their bank account? We have this setup with Chase. Very convenient and no fees. Obviously I can see my daughter’s balances as they are technically mine but she also has a savings account that I cannot see.
Yes, my daughter attends Scripps and my son will be attending Harvey Mudd in the fall.
We live in So Cal, so they didn’t need to get new accounts. There is an ATM on campus and certainly around town they can use. But as I mentioned before the Schwab account would work as well – probably better since you could use ANY ATM, while the credit union one is just on ATMs that are part of the Co-Op network (which I have found in grocery stores, 7-11’s, Walgreens, etc. not really hard at all).
Deposits are done by smartphone, so really as doschicos said you can do a lot without ever stepping into a bank.
I’ll be going to Pomona in the fall, so it’s nice to know about their experience with banking on campus.
Congrats! You’ll love Claremont. It’s a great place. If you have any other general Claremont questions feel free to ask me.
CCDD14, I think that parent linked account is only for high school students, correct me if I’m wrong. Also, wouldn’t that give then some measure of control over the entire account? They wouldn’t be depositing into or withdrawing from my account, so I think a separate one would be better.
Perhaps for a specific account for minors but you can absolutely have accounts linked with parents/kids/etc. This can be a way to avoid fees depending on the bank.
If you do not trust your parents (as it seems like in post #26) then it is not a good idea to have accounts linked. I am in my mid-20s, married, and still have accounts linked with my parents because it’s easier to transfer money that way if there’s an emergency or something.
I’m leaning towards the Schwab checking account, but I’m concerned about the balance-it will be neither high nor consistent. Would it be better to just go with a bank like Chase considering that?
I don’t know why that would be a concern. They say the minimum balance is $0. And it got some excellent reviews. We just opened an account for my daughter because she’ll be studying abroad and their customer service was very professional (so far so good!).
You’re right- I think I missed that point when reading the details.
Romani, you make a good point about the ease of transferring money between accounts-my mom banks with WellsFargo not Chase though, I’ll ask her about it.
Can they withdraw money out of your account, though? I wouldn’t like that- I’m only interested in the case that my parents’ might need money at some point and it’d be easier to transfer it to them with a linked account.
Yes, they can for every account I’m aware of. You can always transfer using paypal though if you’re worried about them taking money from you.
My mom would never take money from me; she always asks before she borrows money and pays me back in full later. With a linked account, she would most definitely ask if she intends to borrow money, but I wouldn’t want to put myself in a situation that would make her more inclined to ask.
Hence, the ease of a linked account.
If you are concerned about parents borrowing money, having a joint account is not a good idea. I just set up joint accounts so I could add money to my kids accounts if needed (it really was never needed). My kids were 18 and 19 when we opened their joint accounts. I pretty much ignore their accounts, except if I notice they gave had dormancy fees assessed; then I try to get them removed and add a small deposit.
It was handy for them to have both Schwab accounts and the CU on campus.
OP, Chase has HS Checking and College checking. Both can be linked to parent account. You will have your account number, checkbook, atm card and you can link it to your savings account. I think they force you to transfer $25 to savings every month. So if you do not mind your parents seeing your balances (you will not see theirs) - it is the easiest way to go. Yes, they can withdraw money from your linked College account - it is technically still their account. If they actually need to keep their bank balances low then this is not a good setup.
Chase has a Quickpay feature where you can send money between non-linked accounts.
Actually I just realized that Chase may wave some/all fees if you enable direct deposit. Check it out.
I have no idea why this is the “easiest way to go”. Setting up a checking account is not hard at all, and several free options have already been mentioned.
We have had no issued or minimums at Schwab and they gave free checks and reimburse ATM fees. My S favors them and I believe D does as well.
I have all of my personal accts at Fidelity (pretty much same as Schwab), including my son’s custodial acct. In two weeks, it will no longer be custodial, as he will turn 18 . He is attending school on the other side of the country. I plan to have his acct convert into a regular account in his name only. Fidelity is great - you can pay bills via bill pay, deposit checks through the app, get unlimited free checks and get free ATM withdrawals nationwide. Just like a bank account, except you just can’t deposit cash. You can transfer money in and out via ACH very easily (so I can replenish from my account).
As for CUs, they are fine too, just make sure there are network ATMs near your campus. With the larger bank accounts, some can work well also, but beware of fees, especially from other ATMs (18-22 yr olds want money when they want it) and when you leave college. However, if your parents have a big relationship with Wells or BofA, it may be more convenient to go that way just b/c it will be convenient to be under their umbrella.
At this point in the life cycle of financial institutions, I would say ATM fees are the biggest concern for a college student. Pretty much everyone has app-based deposits, online banking, and employers don’t even give checks anymore, they require you to do direct deposit or take one of those Visa card accounts. Furthermore, checks are an antiquated form of payment - most countries in Europe don’t even have checks - they just use debit and ACH to make all payments. So as long as you can access money for free (checks, ACH and ATM) that is probably the primary driver for a college student.
Fwiw, I honestly do not remember the last time I used an ATM. They’re there if I need it but I deposit checks via my app, use my credit or debit card for all purchases, and then pay them off online. The only time I have cash on me is when people give it to me and I just keep it until my next purchase.