Student chequing accounts
Students get very good offers in terms of banking services. Like children, students can also get special discounts on bank accounts. To do this, they must be enrolled in a post-secondary educational institution and be over 19 years of age. Read on to learn more.
What is a student bank account?
Student chequing accounts are bank accounts designed to help post-secondary students save on bank fees throughout their studies. Although each bank has its own requirements for opening a student account, you will still need to be enrolled (usually full-time) in a post-secondary program at a recognized educational You also need to be in a defined age range, typically 18-25, but this can vary.
A large number or unlimited number of debit card payments each month,
A small amount (or zero amount) of minimum balance or initial deposit,
A defined number of free e-mail transfers,
Discounts on the annual fee for certain credit cards.
What are the conditions for opening a student checking account?
As with all bank accounts, two pieces of identification are required to apply for a student bank account in Canada.
How to choose the best student chequing account?
Depending on your needs, different options may be more advantageous. Here are some questions to ask yourself before deciding which account to open:
Do you need an unlimited number of transactions, or could a pre-defined number of monthly transactions (eg 30) be enough for you?
If you choose a plan with unlimited transactions, are the monthly costs worth it? Compare the monthly fees with the transaction fees of other accounts.
How badly do you need ATM access? Does the financial institution you are considering have ATMs near your residence and / or campus? Will you primarily be doing your banking online?
What happens when you are no longer a student?
In most cases, your bank will automatically transfer you to a checking account at the end of your program, after your final exam. If you check the detailed terms on your bank’s website, you should find a clause stating that your bank will open an account based on your transaction history.
This means that if you often make debit card payments or e-mail transfers, the bank will open an account suitable for these transaction habits. For example, they might open an account for you that offers unlimited debit card payments.
The obvious risk in this situation is that you end up with an account that will charge significant fees. The best way to avoid this potential problem is to tell the bank which account you want to get before your student account is automatically closed.
What if student accounts weren’t the best solution for you?
Even though you are a student, that does not necessarily mean that a student chequing account is the best choice for you. The “best” chequing account is the one that best meets your needs. If, for example, you are looking for a low budget account offering an unlimited number of transactions, you can choose a checking account without fees since it benefits from unlimited transactions with no monthly fees. However, since small lenders and credit unions do not offer free checking accounts, you may have limited access to ATMs. If you use your debit card at ATMs that are not associated with your lender, a transaction fee will be charged.
If you are a student looking to open a checking account, think realistically about your banking habits, as well as the frequency and types of transactions you will be making.
