We can’t decide if our daughter should open a checking account at our local credit union, where she already has a savings account, or if she should wait and open one in September at the credit union on her campus in another state. This account would probably come with an ATM card. Any thoughts?
I would open one on her campus - it will be much more convenient. She would avoid extra ATM charges probably, also. Although there are some banks that will refund ATM fees anywhere in the world. That’s been very helpful for my kids who studied or volunteered abroad.
Thanks, @MaineLonghorn! That’s what I was leaning toward, but didn’t know if that would be problematic when she was home for extended vacations or for four months next summer.
Check out the network that your credit union uses for ATM cards. There may be no-fee ATMS available near your daughter’s campus.
Also, find out if your credit union and any others near her campus participate in one of the shared branch programs such as https://co-opcreditunions.org/ or http://www.cucenters.com/cucenter/index.cfm/shared-branching/ If that is the case, then there isn’t any need to join a new credit union. All routine deposits/withdrawals/transfers for her home credit union can be handled at the shared branch in the new location. So far ordering new checks is the only task I haven’t been able to take care of at the shared branch near me. For that I had to contact my home credit union on the other side of the country.
Pretty much what the others said:
It’s highly unlikely she’ll need anything more than an ATM so if your credit union has an app for deposits via smartphone (on the rare occasion your daughter needs to deposit a check) and it’s part of the Co-op (and the local one is too), you won’t need a new credit union.
Our credit union is part of the co-op network and I’ve found ATMs all over the nation at 7-11, grocery stores, Walgreens, and many other places—never been a problem.
Or get an account (Schwab has one) where you won’t be worried about ATM fees at ANY ATM worldwide (they will rebate any fees you incur).
Just adding on-we use a credit union and have also been able to find other CU in their network that were no-fee no matter where you are. If there’s a CU right on campus, there shouldn’t be a problem.I haven’t written a paper check in 2 years. Do people still need to use them regularly, especially a college student?
My daughter opened a local account in her school’s town. She has to write rent checks and mail them to her landlord.
Fidelity also has a cash mgmt account that functions like a checking acct, with free check writing, ATM nationwide, and bill pay. However, I’ll bet your local CU has ATM sharing arrangements with local banks where she’s at school. Check the Allpoint network. As for writing checks, I’ll bet you can use bill pay and/or ACH for most people you need to pay - no need for checks in today’s world.
I have an account at a credit union, a national bank, and a local bank. Honestly, all of them are fine. I don’t remember the last time I actually used an ATM. Most jobs are direct deposit and you can use a card pretty much anywhere. Checks are sometimes needed but you don’t need to go to a bank to get checks.
Most credit unions are part of a national pact that allows you to use most credit unions’ ATMs free of charge. See if your CU offers that.
USAA has a free on line account that refunds up to $15 per month in ATM fees. Completely free checking. Also Charles Schwab provides free checking with ATM usage.
(Having a deja vu experience)
You may want to check out this thread…
http://talk.collegeconfidential.com/parent-cafe/1784604-first-checking-account-p1.html
I opened accounts for both kids at whatever bank was on campus. I always wanted them to be able to take out money from an ATM in the safety of the campus. The ATM on campus at my D’s college is from a small local bank – we were able to set up the account by phone/mail and she will close the account upon graduation since there are no branches near where we live – it is a bit of a hassle but no regrets for the convenience she has for the 4 years of college.
My kids all have an online accounts, checking and savings, at Capital One 360 (formerly ING). My college daughter has never had a need for anything else. There are free ATMs in the bookstore and at the nearby drug store. She can deposit checks with a smart phone. The accounts are completely free and both pay interest.
My suggestion is to open an online account like Fidelity or Schwab where all ATM fees are reimbursed. The concept of banking locally is old school these days. The Fidelity/Schwab accounts offer ease, no expenses, and the benefit of flexibility which is key to young people who often move after graduation. Additionally, it open them to a whole world of investing and the knowledge and lifelong benefits that come with it.
Check if your daughter’s college has a preferred bank arrangement. Some schools do and it is the quickest way to get financial aid into hands.
I preferred to have my kids’ accts tied to mine, that way I could “monitor” and transfer money to their accts easily.
I hate to admit this…but for convenience, our kids both have bank accounts at a national bank with branches near where they live, as well as near where we live. We are able to easily deposit money to their accounts. Because we don’t have accounts at this national bank, we cannot do this online.
We also have a joint account with our kids, at local bank as well as credit union on campus. I have never done much other than add money to their accounts but being a joint holder lets me talk with personnel if there are any issues, since I will get to talking to staff sooner than either of my kids. It has worked fine. They kids closed accounts they no longer wanted and all the accounts were free, including a box of free checks.