What is a student bank account?
When you’re studying, life tends to get busy. Student bank accounts can help you easily manage your money, track your spending and pay your bills.
A student bank account is a transaction account that has been specifically designed for students. These accounts tend to have certain benefits, such as discounts on banking products, and have little to no fees.
How is a student bank account different than other bank accounts?
Student bank accounts are designed with students in mind. While they can vary from bank to bank, student accounts usually have lower fees than your average bank account. This might mean they slash the monthly fee to make it more affordable for students.
Banks may also offer benefits or discounts for students. These benefits can differ greatly, but they’re typically linked with bank products. You may have access to a $0 annual fee credit card or get a student discount card.
Typically, student bank accounts function in the same way that normal accounts do. This means that you can still make cash withdrawals, make everyday purchases and deposit funds.
Do I need a student bank account?
If you’re a student who wants to open a bank account, it’s not required that you open one that’s specifically for students. However, if you choose to open a bank account that is not designed for students, you may end up paying fees that student accounts typically waive.
For students who want to manage their money and spending easily and without fees, a student account may be more beneficial than any other bank account.
How do you open a student bank account?
Many lenders offer student bank accounts. If you already use a bank, you may choose to open a student account through them, or you may find a great option with a different bank.
After you’ve chosen the student account for you, there will likely be an application process with the bank. This process will collect your details and verify your identity before opening your account. While the application may sometimes be completed online, you may need to visit a bank branch to apply.
Do student bank accounts have fees?
Most student bank accounts prioritise affordability. As such, you’ll find many student accounts that cancel the monthly fee. There may be other fees, however, such as ATM withdrawal fees. Though some fees may not affect you at all, you should consider your daily habits to make sure you’re avoiding high fees.
What should you look for when choosing a student account?
Choosing a student account is much like choosing other banking products. It’s all about finding the account that fits with your lifestyle and your priorities.
You might first consider the fees. Are you happy to pay a monthly fee? If not, you can avoid student accounts that require monthly payments. Do you withdraw cash often from different locations? If so, you might consider looking for a student account with minimal or no ATM fees.
Some banks will offer benefits when you open their student account. These benefits might include a student discount offer, a fee-free credit card offer or a loan offer. Consider your future financial goals to decide which benefits might be suited to you.
If you plan on keeping your student account even after you stop studying, it might be beneficial to speak with your chosen bank about how the account will transition from a student bank account to an everyday transaction account. It’s possible certain fees will be added, or they may indicate that you need to open a new account. Take this into consideration when making your decision.
Do I have to prove that I’m a student to open a student bank account?
Proof of study requirements vary from bank to bank. Typically, your bank will require at least one document to prove that you’re a student before your account application can be approved. Your student identification card is usually enough to open an account, but check with your bank to ensure that they don’t require any other proof of study.
Can non-students open a student bank account?
The answer to this question depends predominantly on your age. Many banks restrict their student bank accounts to students alone, while others will allow anyone under the age of 25 to apply. You’ll need to check with your bank about their age and status criteria.
If you’re a student and want to take control of your finances, a student bank account can be a good place to start. Your student account will allow you to manage your spending and make everyday purchases as you enjoy lower fees and extra benefits.