What type of bank account should a student with no credit have?
Aug 29, 2010 in
Business FAQs
I just barely turned eighteen in may and I’m about to get a job once I finish school. I want to know what type of bank account has interest, no overdraft( like one that I have to have a minimum balance to keep open. I want to be smart with my money and build credit.
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2 comments
Bud on August 29, 2010 at 2:06 am
Proceed with caution. Bank rules have changed, naturally in favor of the banks. Unless you keep a minimum amount of money in your checking, or saving account you will be charged maintenance fees. These fees are substantial. Less than $300 in your savings account, you may be charged a monthly $5 maintenance fee. Less than $800 in your checking results in a $12 monthly maintenance fee. These two fees combined result in an annual charge of over 20% the BANK charges YOU, just for the "privilege" of you putting your money in their bank so they can turn around an loan it out and make money with it. They found another legal way to screw the little guy! and our government allowed them to do it!! The only way around these fees is if you have enough money to invest in a CD or IRA, CD so that it constitutes a total deposit above a certain dollar point, or if you have your paycheck regularly direct deposited from your employer into your checking account. All bank policies are not the same, so check them out carefully. Trust banks only as far as you can pick up the building they are in and throw it. It is unfortunate for the few honest ones, but the greedy bankers and financial experts exposed their unbridled greed and damaged their reputations so bad in this last financial meltdown, they are now trusted about as much as an attorneys, whose reputations, in my estimation is about one step below that of a convicted felon. When you finally choose a bank, go in and sit down with with a customer service rep. Tell them what you need to do and ask what they can offer. Ask a lot of questions regarding maintenance fees and all other charges. Sorry if I come off sounding so cynical but experience has made me that way. Best of luck to you.
Judy on August 29, 2010 at 2:06 am
Opening a savings or a checking will NOT build your credit.
Also new laws will prevent you from opening a credit card if you are under 21.
Which is sad.
Credit cards are a great way to build up credit for free.
You charge a little something and you pay in full each month – never paying a cent in fees or interest.
Some banks will require a min balance of $300 for savings accounts.
And most banks are still offering totally free checking accounts.
With a checking account you get the debit/atm card which you can use for your purchses anywhere.
New overdraft rules:
Now when you use your debit card – if there is no money in your account – you will not be charged.
Your card will be declined on the spot.
So don’t worry to much about overdraft fees.
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