What is the Best Bank for College Students in 2022?

As a college student, you have a million things going on, from tuition fees to exams, your social life, to lectures. One other thing you need to be on top of is banking for college students: specifically, the best and most cost-effective method for storing your money. 

Different banks across the country have varying packages and fees. Some are detrimental to student savings, while others are tailored specifically for students. How do you decide when there are over 4,000 banks in the USA?

Here at the College Monk, we’ve got you covered. We put together a list of what we think are the best banks for college students, including the best college student checking accounts. We’ll go over fees, interest rates, and different accounts to help you decide for yourself, which is the best bank for college students. 

 

Best Banks for College Students 2022

Let’s begin with our list of the best banks for college students 2022!

1. Ally Bank
2. Capital One 360
3. Chase Bank
4. Discover Bank
5. PNC Bank
6. Bank of America 

 

1. Ally Bank

If you think banking for college students should take a predominantly online approach, you might like what Ally Bank has to offer. 

A completely online bank with mobile apps, Ally Bank takes their savings from what they’d spend on brick-and-mortar locations and puts them into competitive fees and high savings interest rates for their clients!

While Ally Bank doesn’t offer a specific account for students, its regular checking and savings account may be the best bank account for college students for a few reasons. Check out some more specifics about the bank’s offerings below:

Monthly Fees: None

Minimum Balance: None

Interest Rates for Savings Account: 0.5% for the savings account, almost 10X the national average of 0.06%. 

ATMs: 43,000 ATMs nationwide with no fees

Overdraft: Free overdraft transfers from savings to chequing to cover overdraft amounts, otherwise a $25 fee will apply

 

Pros: 

• No monthly fees
• High interest rates
• Convenient online banking
• Helpful 24/7 customer support via phone, email, and live chat
• $10 limit for ATM fee reimbursement

 

Cons:

• Doesn’t allow cash deposits
• Lack of brick-and-mortar stores may be inconvenient for some customers

 

We especially love that Ally Bank works with customers to avoid overdraft fees, making it one of the best student checking accounts in our opinion! 

Learn more about Ally Bank. 

 

2. Capital One 360

A subsidiary of Capital One Bank, Capital One 360 is the convenient, online version. The Capital One 360 Checking Account offers an Early Payday option, allowing students to access cash a few days before a regular deposit. The account also features extensive overdraft options, including a one-day grace, allowing you to recover the money lost within one day before Capital One charges a fee. 

The Capital One 360 Performance Savings Account offers a competitive 0.4% interest rate, a free automated savings plan, and easy, digital banking. 

Monthly Fees: None

Minimum Balance: None

Interest Rates for Savings Account: 0.4%

ATMs: 70,000 ATMs nationwide with no fees, and no Capital One fees for external ATMs

Overdraft: Overdraft options to avoid fees, including one-day grace, auto-decline, and a free savings account transfer

 

Pros: 

• Branch access and support at Capital One 360 Cafes and Capital One branches
• No monthly fees
• Early Payday
• Overdraft protection options
• High interest rates
• Ability to deposit cash
• Convenient online banking

 

Cons:

• $35 overdraft fee if you don’t make the one-day grace period

 

Learn more about Capital One 360. 

 

3. Chase Bank

Chase Bank offers a dedicated student checking account that you can open either in-branch or completely online (as long as you’re over 18 years old). While the account is a great option for a student familiar with Chase it falls short in terms of potential fees with overdraft, and small interest potential on savings accounts. 

Monthly Fees: None for up to 5 years

Minimum Balance: None

Interest Rates for Savings Account: 0.01%

ATMs: 16,000 ATMs nationwide 

Overdraft: Free fee transfer from savings to chequing; if there’s no savings account, overdraft costs $35 up to 3x per day

 

Pros:

• $100 signing bonus
• Dedicated college student checking account
• Ability to extend student eligibility past graduation
• Access to 5,000 in-person branches

 

Cons:

• Menial interest on savings account
• Costly overdraft fees if you don’t link the checking account to a savings account for fee transfer

 

Learn more about Chase student bank accounts. 

 

4. Discover Bank

Discover Bank doesn’t offer a dedicated student account, but its regular accounts are beneficial for students. With absolutely 0 monthly fees, competitive savings interest, and the potential for $3,000 in 1% cashback on the checking account, students will enjoy the savings and perks of Discover’s budget-friendly accounts. 

They are primarily an online bank but have one in-branch location to support customers in the Greenwood, Delaware area. 

Monthly Fees: None 

Minimum Balance: None

Interest Rates for Savings Account: 0.4%

ATMs: 60,000 ATMs nationwide with no fees 

Overdraft: No overdraft fees. Option to sign up for overdraft protection, otherwise, Discover blocks any transactions that would put you in overdraft

 

Pros:

• 1% cashback for the checking account, up to $3,000
• $200 bonus when you open a savings account
• No monthly fees
• 24/7 virtual customer support

 

Cons:

• Doesn’t allow cash deposits
• Has only one branch, which may be inconvenient for some customers

 

A serious highlight for this account is the 1% cashback on checking accounts. For big purchases like furniture, or for big spenders in general, this is a great way to earn some extra cash!

Learn more about Discover bank accounts. 

 

5. PNC Bank

PNC Bank offers the college-student-tailored Virtual Wallet Student: an entirely online choice of three bank accounts:

• Spend, the primary chequing account;
• Reserve, the short-term planning account; and 
• Growth, the long-term savings account. 

PNC also offers a student center to help educate college students about banking and financial topics. 

Monthly Fees: None for up to 6 years

Minimum Balance: None if you open your accounts online, otherwise a $25 minimum opening balance

Interest Rates for Savings Account: PNC doesn’t list it on their information page, and implores interested customers to call and inquire about interest rates. 

ATMs: 16,000 ATMs nationwide 

Overdraft: Alerts and a one-day grace period for overdraft fees

 

Pros:

• Flexible options to avoid overdraft fees
• No monthly fees for up to 6 years
• Dedicated college student checking account
• Ability to extend student eligibility past graduation
• Access to 5,000 in-person branches

 

Cons:

• Costly ATM surcharges ($3 PNC fee each time you use an external ATM)
• Reviews cite low interest rates on savings accounts

 

Learn more about PNC’s Virtual Wallet Student accounts. 

 

6. Bank of America

If you’re more comfortable with a traditional, brick-and-mortar bank, Bank of America is a trusted financial institution that’s been around for the last 24 years. The bank’s Advantage banking accounts offer no monthly fees if you’re under 24 years old. 

Monthly Fees: None until you turn 24 years old

Minimum Balance: $25-$100 for the Advantage SafeBalance and Advantage Plus Accounts, respectively

Interest Rates for Savings Account: 0.01%

ATMs: 16,000 ATMs nationwide , $2.50 fee for external ATMs

Overdraft: No overdraft fees, purchases that put you in overdraft are declined

 

Pros:

• No overdraft fees
• No monthly fees for up to 6 years
• Access to 4,400 in-person branches

 

Cons:

• Minimal interest rates for the savings account
• Minimum opening balances

Learn more about Bank of America accounts. 

 

7. Alliant

Alliant is a credit union that offers completely online e-banking and fee-less monthly banking for both checking and savings accounts. Despite its modern, online model, Alliant has been around for 84 years and serves over 600,000 customers. 

What’s impressive about Alliant is its interest rate on the savings account. At 0.55%, it offers the highest interest of any other bank on this list. 

Monthly Fees: None except for the savings account, which can be waived if you opt for e-statements

Minimum Balance: $5

Interest Rates for Savings Account: 0.55%

ATMs: 80,000 ATMs nationwide , $20 rebate for any external ATM fees

Overdraft: Overdraft protection transfers, otherwise lower-than-average overdraft fees

 

Pros:

• No overdraft fees
• No monthly fees for up to 6 years
• Access to 4,400 in-person branches

 

Cons:

• Customers may find the lack of in-person branches inconvenient

 

Frequently Asked Questions (FAQs)

    1. What Are The Benefits of a Student Bank Account?

Dedicated student bank accounts tend to have lower, if any, fees every month. Some student accounts also have other perks like cashback and signing bonuses as well. 

    2. What Happens To a Student Bank Account When You Graduate?

It depends on the bank. Some banks reinstate monthly fees once you reach a certain age or once you graduate. Others offer the possibility of extending your eligibility and maintaining a bank account without any monthly fees. To be sure, reach out to individual banks to find out about their policies. 

    3. Should You Open a Student Bank Account?

If you’re a college student, there’s no reason why you wouldn’t open up a student bank account! With low fees and other perks, you can have some extra money in your pocket for groceries, rent, or tuition by signing up for a student bank account. Take a look at the list of the best banks for college students to find the right match!

 

Conclusion

Which is the best bank for students? Luckily, there are countless, great options out there for banking for college students. Take a look at each bank’s pros and cons to figure out which best checking account for college students is the right fit for you. If you need help deciding, let us share some of our initial thoughts on the best banks. 

If you’re comfortable with entirely online banking, we think Ally Bank offers one of the most competitive bank accounts for students. At a 0.5% interest rate for savings accounts, free overdraft transfers, 24.7 customer support, and access to over 43,000 ATMs  — students can enjoy stress-free banking. Alliant is another great online option, offering an impressive 0.55% interest on savings accounts. 
Ready to successfully manage your money this semester? Continue this momentum by exploring student loans and scholarships!