bank accounts – Larrysteenbass.com

Being a student is always tricky – you’re somewhere between being a child and being a fully-fledged adult and you’re trying to find your way in the world. Student bank accounts are just one example of how students get a little bit of a short deal during their late teenage years – they need their own bank account, but they’re unable to get an adult account and they’re too old for a children’s account. Luckily, there are a few bank accounts that are specific to students – although which bank account you end up with depends on which type of student you are. Take a look at our quick guide to student bank accounts for more advice.

Young Person’s Account

Most banks offer a “young person’s account”, usually targeted at students either just below the age of 16 or just over the age of 16. Generally, young person’s accounts offer most of the benefits of a children’s account, but in a lot of cases, young person’s accounts have limited functionality in terms of paying money in or out. Most young person’s accounts can accept money, while debit cards associated with young person’s accounts can pay for items online and in shops and withdraw money from automatic transaction machines, but many of them can only pay out in cash. That means that direct debit payments cannot be set up from a young person’s account, although this will differ from bank to bank.

Student Account

Student accounts are typically offered to students in high school and college. Student accounts are virtually the same as an adult account. Students can set up direct debit payments, pay for items online and in store, use their debit card to withdraw cash from ATMs and set up automatic payments. Generally, student bank accounts are completely free, meaning that students don’t have to pay to have a bank account. However, some student bank accounts will also offer an overdraft facility of up to $2000, depending on status, which students can use as a cushion if they run out of money for paying their bills. Overdrafts are generally free if you pay back any money owed on the overdraft within the month. If not, there is generally an interest charge of up to 30%. If you must use your overdraft facility, try to pay it back within the month, if you can.

Graduate Account

Graduate accounts are what students move onto when they graduate college. They have all of the benefits of a student account, including the ability to make and receive payments, the ability to withdraw money from an ATM and the ability to access an overdraft. The major difference between a student account and a graduate account is the amount of overdraft available. Typical graduate accounts could come with an overdraft of up to $4000, depending on status. The reason for the increase in overdraft on a graduate account is to give students a helping hand when it comes to paying their bills and finding a job when they are fresh out of college, although the interest rates typically remain the same.

Student bank accounts differ from bank to bank, so ask your local bank about anything you’re not sure of.

There are so many different types of bank accounts out there that it can be tricky to work out which bank account is right for you. With everything from basic bank accounts to cash only accounts and prepaid bank accounts, without a guide to tell you exactly which bank account provides which benefits, it’s difficult to know exactly which account you need. Read on for our guide to basic bank accounts.

Basic Bank Account

Basic bank accounts were originally set up to enable those with poor credit histories and those who are less well off to have access to bank accounts and day-t0-day banking facilities. Basic accounts were set up for those who were unable to get a “normal” bank account due to having a poor credit history or no credit history at all.

Benefits of a basic bank account:

Allow you to pay in your wages, benefits, credits and pension
Allow you to set up standing orders, direct debits and direct payments in order to pay your bills
Allow you to spend money using a cash card

The difference between a basic bank account and normal bank account is that you’re unable to have an overdraft facility or a chequebook. This is useful for people who are worried about overspending, as you are unable to go overdrawn and so you don’t have to worry about being able to pay back the overdraft. However, if you fail to make a bill payment or if you don’t have enough money in your account to pay a bill, a charge will be put onto your account. If you fail to pay the charge within a set number of days, you’ll accrue more charges.

Cash Card Only Account

Cash card accounts allow you to pay money into an account, through your wages, benefits, credits and pension. However, with most cash card accounts, you are unable to set up standing orders or direct debits. You can make one time only payments from these accounts but you are unable to set up direct debits as the bank will see you as a risk. The bank may well expect you to default on your payments and so they do not allow you to set up a direct debit in order to prevent you from accruing charges. You are also able to use the card to withdraw money from cash machines and to make payments in shops and online. Your card will be rejected if you do not have the money available in your account.

Prepaid Bank Account

Prepaid bank accounts are becoming more and more popular – but they’re not actually bank accounts. Prepaid bank accounts are actually prepaid cards that you pay your wages into (you can also top them up with money at certain stores and cash machines). You can then pay your bills from the account. Again, bills can only be paid from the account if there is enough money in the account to pay them. If you don’t have enough money on the card to pay your bills, you’ll be charged, and if you don’t have enough money in store or online, your card will be rejected.

Basic bank accounts can be very useful, especially if you have a low credit score. Contact your bank to find out more.

Tag: bank accounts

Guide to Student Bank Accounts

Guide to Basic Bank Accounts