Selecting MyBank

Odds are you already have a checking or savings account, a bank, or local credit union. This may or may not be the best bank for your convenience during your college years. The following information can help you select a banking institution that is correct for you. Keep in mind that most banks offer special services, or discounted rates on accounts, in hope of retaining you for all of your banking business. Shop around and remember, the best choice may be a Credit Union for your checking account; however, it may be another lender that is right for a savings account. Be sure to do your research and remember it’s important to read and understand the fine print.

Checking Account

FREE Student Checking is available at most banks. While free is good, you will want to ensure that the services included within a free checking plan meet your needs and know what it takes to keep your account free.

Know how you spend the funds in your account. Will you need checks, credit card, debit card, online banking, ATM access or a combination?

Review your budget for your average monthly balance. If you maintain a low account balance and risk being overdrawn, overdraft protection may be a worthy consideration..

Research the location of the ATM(s) you will be using most while at college. You want to make sure that your ATM transactions at this machine, and others you frequent, will be free.

Verify that you and your family members can deposit money, into your account through free online banking from checking and savings accounts at other institutions, and that you can do the same.

Savings Account

Understand that the reason to have a savings account, and not in a sock drawer with cash in it, is so our money will keep up with inflation. We need an average of 3% annually to maintain the same purchasing power that we had when we received the money to begin with. If you have substantial savings, consult with a professional and consider diversifying your accounts.

The traditional savings account is for short term savings, as the account will most likely not earn more than inflation. You can shop around for savings accounts online, too. As long as your savings account and checking account allow free online transfers, there will be no need to ever visit a savings account branch.

Certificates of Deposit (CD) are a longer term savings tool. They have various term lengths under which you agree to invest to receive your guaranteed rate of return. It is important to note that you can only withdraw your savings/investments from the CD when the term is up or you will loose all of the interest earned. Like savings accounts, you can shop around for CD’s online, also. As long as your CD account allows for free online transfers, there will be no need to visit a branch.

Money market accounts are another longer term savings tool in which your money is used to give short term loans to the bank. As with CD’s, as long as your account allows free online transfers, there will be no need to visit a branch.