Like many college students, opening a bank account could be the first step you take in managing your personal finances. Even if you had a checking or savings account while in high school, you might be considering changing banks in college. Maybe there’s a Bank of America branch on or near your university campus, or perhaps you’ve heard good things about BofA and wonder if that particular bank is a good choice for you. Show
This article will provide the information you should know before opening a student account at one of the largest banks in the U.S., Bank of America. Topics covered include:
Eligibility Requirements for Bank of America Student Checking AccountsBank of America has two types of checking accounts suitable for most students: the BofA Advantage SafeBalance Banking checking account and the Advantage Plus Banking checking account. Even though BofA doesn’t specifically refer to either of these as “student accounts,” they will waive their monthly service fees for students who are under 24 years old and enrolled in high school, a vocational program, or college or university. It’s easy to open either of these new accounts. You just need to present your Social Security number, provide a minimum opening deposit of $100 for the Advantage Plus or $25 for the Advantage SafeBalance account, and maintain a permanent address in the U.S. Bank of America Advantage SafeBalance vs. Advantage PlusWhile the Advantage SafeBalance and Advantage Plus accounts offer a monthly maintenance fee waiver for students, there are significant differences between the accounts:
Pros and Cons of Bank of America Checking AccountsAs is the case with all banking options, you’ll find some pros and cons to each. Ultimately, which type of account you choose will depend on your particular circumstances and needs. The following sections list some of the pros and cons associated with the Bank of America checking accounts to help you make a sound decision. Pros of Bank of America CheckingBofA’s checking accounts definitely offer some real advantages. They include:
Cons of Bank of America CheckingOf course, like anything else, banking with Bank of America has a few downsides.
Bank of America Checking Service FeesMany banks charge their customers a monthly maintenance fee for their checking account. Bank of America is no exception. While you’ll be allowed to have a service fee-free account until you graduate or reach the age of 24, whichever comes first, you will incur checking service fees if you keep your BofA account beyond graduation. Those fees are:
Bank of America Checking Minimum BalancesThe minimum balances BofA charges for its two student-friendly checking accounts — $25 for the SafeBalance and $100 for the Advantage Plus — are not unusual. Many, if not all, banks require some kind of minimum balance to open the account or avoid fees or receive other perks. Banks impose minimum balances on account holders because they want more deposits. The more money banks have in their coffers, the more they can lend to people and charge interest for. Also, banking regulations favor banks that maintain a certain level of bank deposits, so incentivizing you to keep money in your account helps banks with compliance. Finally, banks offset their operation costs with the fees they charge customers, so whether you keep a minimum balance, they still make money. Confusion can arise, however, because banks use different methods to calculate whether and when you have met the minimum balance. Be sure to ask the bank how and when they calculate their minimum balance requirements, including what constitutes a statement cycle, before deciding to open your account. Also, be sure to ask if there are other ways to avoid incurring fees after you stop being an eligible student, such as using online banking or setting up direct deposit. Is Bank of America Checking Good for You?Whether Bank of America ends up being the right choice for a student checking account depends on if the benefits outweigh any potential problems for you. As one of the largest banks in the country, there’s a good chance that you will have a BofA branch in proximity to your home or campus. However, if you are studying in a state without a BofA, you could end up incurring a lot in ATM fees. If you decide to go with a BofA account, you’ll need to choose between the Advantage Plus or SafeBalance account. If you will be doing a lot of check-writing, you will need the paper checks that come with Advantage Plus. Keep in mind that you could be charged a lot in overdraft fees if you are not extremely careful with how you manage your account. If you never write checks and don’t like the risk of incurring overdraft fees, then SafeBalance might be the way to go. It’s important to remember that after you turn 24 or graduate from college or your vocational program, both accounts will revert to charging you fees unless you meet certain requirements, so make sure you understand all the possibilities. Need More Help? CollegeFinance.com Is Your Resource for Student Financial InformationPlanning for college is an exciting time in every student’s life. But it can also be stressful, especially when it comes to figuring out how to handle the financial aspects of obtaining an education. Along with choosing the best bank to meet your needs, you might be gathering information on how to save for college, how student loans work, and how you will pay off your student debt. CollegeFinance.com can help. We’re experts in helping students like you manage the financial aspects of a college education, freeing you up to focus on working for your degree, rather than on how you’re going to pay for it. Can a 15 year old open a checking account at Bank of America?For Bank of America, you can open a joint account with a child who is at least the age of 13. This makes them eligible to have an account with a debit card of their own you can monitor and access as you wish.
Can a 14 year old get a debit card at Bank of America?We can help you find the right account and walk you through applying at one of our financial centers. To open an account, you'll need a co-applicant over 18, like a parent or guardian.
What does a minor need to open a checking account at Bank of America?For all bank accounts:
Both you and the minor must provide a valid primary ID, such as a state ID card, driver's license, or passport. It must have a photo and cannot be altered or expired. You may both be asked to provide a secondary form of ID, such as a student ID or a major credit card.
Can I open a checking account for my teenager?Opening a bank account for a teenager can be done, typically with the help of a parent or guardian as owner of the account. Often, the account may need to be opened in a branch, but some teen accounts can be opened online — again, with the oversight of a parent or guardian.
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