Top Checking Accounts for College Grads
For many college students, their default banking option while in school is a student checking account, which is typically free. Unfortunately, when you graduate you lose those benefits. Many student checking accounts will begin to charge you monthly maintenance fees unless you meet certain requirements. So, where do you go from there? Few young adults … Continue reading Top Checking Accounts for College GradsThe post Top Checking Accounts for College Grads appeared first on MagnifyMoney.
Posted — UpdatedFor many college students, their default banking option while in school is a student checking account, which is typically free. Unfortunately, when you graduate you lose those benefits. Many student checking accounts will begin to charge you monthly maintenance fees unless you meet certain requirements.
So, where do you go from there?
Few young adults would turn to their parents for fashion or dating advice and, yet, one of the most common ways we’ve found young people choose their bank account is by going with whichever bank their parents already use. This could be a bigger faux pas than stealing your dad’s old pair of parachute pants.
The bank your parents use may carry fees or have requirements that don’t meet your lifestyle or budget, and make accounts expensive to use.
But where do you even begin to choose the right checking account?
In this post, we’ve compiled a list of the top checking accounts for college grads.
The 5 key things you should look for in a checking account
Top checking accounts overall
Many banks send a letter in the mail a few months prior to your expected graduation date informing you that your student checking account is going transition to a non-student account. If you’re not careful and you disregard the letter, you may be transitioned into an account that charges a fee if you don’t meet certain requirements.
You can always call the bank and ask to switch to a different account or you can choose a new account that offers more benefits, like interest and ATM fee refunds.
The 5 key things you should look for in a checking account
When you’re shopping around for a new checking account, there are several things you should look for to ensure you’re getting the most value from your account:
Top overall checking accounts for college grads
The best checking accounts will have a number of features that are both simple and low cost. For the top overall checking accounts, we chose accounts that have no monthly service fees, no ATM fees, refunds for ATM fees from other banks, interest earned on your deposited balances and with strong mobile banking apps. While there is no all-inclusive account that contains every benefit, the accounts below are sure to provide value whether you want a high interest rate, unlimited ATM fee refunds or 24/7 live customer support.
1. Aspiration – The Aspiration Summit Account
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$10
Unlimited
0.25% APY on balances up to $2,499.99
1.00% APY on balances $2,500+
The Aspiration Summit Account offers a wide range of benefits for account holders and has few fees. The amount to open is fairly low, and once you open your account there is no minimum monthly balance to maintain — though the more money you keep in your account, the more interest you’ll earn.
2. nbkc bank – Personal Account
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$5
Up to $12 a month
0.90% APY on all balances
nbkc has several locations in the Kansas City region. Anyone can sign up for an account, however. This just means if you don’t reside nearby, you’ll have to rely on their online banking system.
The nbkc Personal Account earns interest on your balances and has no hidden fees. Typical checking accounts charge overdraft fees and stop payment fees, among others, but nbkc doesn’t.
The two fees that may apply are for less common transactions — $5 to send domestic wires and $45 to send or receive international wires.
3. Ally Bank – Interest Checking Account
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$0
Up to $10 per statement cycle
0.10% on daily balances less than $15,000
0.60% on daily balances $15,000+
Top free checking accounts for college grads
Free checking accounts are a great way to save on the monthly service fees many banks charge if you don’t meet deposit or balance requirements. The checking accounts listed below are all free, and if there are requirements, they’re minor like enrolling in eStatements or using a debit card. These accounts can be a good choice if you often have a fluctuating or low account balance and don’t want to worry about maintaining the requirements big banks impose to keep their accounts free.
1. Atlantic Stewardship Bank – Cash Back Checking
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$1
Unlimited
Does not earn interest. But it does offer 0.50% cash back if you meet requirements*
Atlantic Stewardship Bank is headquartered in New Jersey and donates 10% of its profits annually to Christian and nonprofit organizations. Its Cash Back Checking account has a minor opening deposit and basic requirements for you to meet to get the added perks.
*When you make 12 debit card transactions each cycle and enroll in online banking and eStatements, you can receive unlimited ATM fee refunds and the chance to earn rewards at 0.50% cash back on debit card purchases.
2. Radius Bank – Radius Hybrid Checking
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$10
Unlimited
0.85% on balances $2,500+
Radius Bank is a community bank headquartered in Boston. The Radius Hybrid Checking account is free as long as you open the account with the required deposit and meet three simple requirements: Enroll in online banking, receive eStatements and choose to receive a debit card. Unlike other checking accounts that require you to make a certain number of debit card transactions a month, Radius Bank does not. In addition to simple requirements, there are unlimited ATM fee refunds at the end of each statement cycle.
3. Bay State Savings Bank – Free Kasasa Cash®
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$0
Unlimited
0.05% if qualifications are not met
(2.01% up to $20,000 if you meet requirements listed below*)
Bay State Savings Bank was founded in Worcester, Mass., and is an independent community bank with the goal of maintaining long-term relationships with consumers and giving back to the community via the Bay State Savings Charitable Foundation.
If you want a free account that is always free — meaning no requirements for you to meet — check out their the Free Kasasa Cash® account.
There’s a small minimum deposit to open the account and you automatically earn interest on your balances.
*If you want the added perks of unlimited ATM fee refunds and a higher 2.01% APY, you need to enroll in electronic statements and online banking, as well make 12 PIN-based debit card transactions each month.
Top high-yield checking accounts for college grads
Since most checking accounts offer little to no interest, high-yield checking accounts are a great way for you to maximize the money that typically would just sit in your account without earning interest. These accounts often offer interest rates that fluctuate depending on how much money you have in the account. However, in order to earn interest, there are some requirements that you may have to meet such as making a certain number of debit card transactions and enrolling in eStatements.
1. First Financial Credit Union – High 5 Checking
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$0
Up to $10 per statement cycle
5.00% APY on balances up to $2,500
0.10% APY on balances of $2,500.01 or more
The High 5 Checking account from First Financial Credit Union is a free account that has fewer requirements for you to follow to qualify for the interest rates compared with other high-yield checking accounts. That’s why it tops our list.
2. America’s Credit Union – Affinity Checking
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$0
$0
$0
None
5.00% APY on balances up to $1,000
0.10% APY on balances between $1,000.01 - $15,000
0.25% APY on balances over $15,000
Like most high-yield checking accounts, you’ll need to jump through a few hoops before you qualify for the higher rate. Here are the four requirements:
- Have $15,000 in combined loans or deposits with ACU
- Have a $500 direct deposit each month
- Sign up for eStatements
- Complete 10 debit transactions in-store that post and settle during the monthly statement period
3. La Capitol Federal Credit Union – Choice Plus Checking
Monthly Fee
Minimum Monthly Balance
Amount to Open
ATM Fee Refunds
APY
$2, waived if you enroll in eStatements
$0*
$50
Up to $25 per month
4.25% APY on balances up to $3,000
2.00% APY on balances $3,000-$10,000
0.10% APY on balances over $10,000 (or on all balances if you don’t make 15 or more posted non-ATM debit card transactions per month)
This checking account has a $2 monthly service fee, which can easily be waived if you enroll in eStatements.
*While the terms state a minimum balance requirement of $1,000 and a low balance fee of $8, the fee can be waived if you make 15 or more posted non-ATM debit card transactions per month.
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