Choosing a bank account as a student and beyond

As a second-year college student, I’ve realized that managing my money can be a challenge. Over time, I’ve figured out what features are most important to me in a bank account. Defining my requirements is a key step, before I even look at what options exist.

I want to try to find an account that I get to keep even after I finish my studies. In fact, the concept of a “student bank account” is not so helpful to make. Some student bank accounts, like with TD, I can only keep until I’m 23; after that I’ll need to open another account that will most likely have monthly fees. I just want an account that meets my needs, now and in the future, whether or not it’s labelled as a “student account”.

Here’s what I’m looking for.

No monthly fees

As a student with limited income, minimizing unnecessary expenses is vital. I always look for accounts with no monthly fees or very low fees. This is important because I don’t want to be charged just for having an account, especially when I’m trying to save as much as possible for other essentials.

Some banks waive these fees if certain conditions are met, such as maintaining a minimum balance. However, I’d rather have an account that does not have a monthly fee even if I only have a few dollars in the account.

Unlimited transactions

A lot of banks limit how many free transactions you can make with their student accounts each month. Take RBC, for example — they only allow 25 free debits a month, including both in-person and online purchases. This might not be a big deal for younger students who don’t spend much, but it can be a hassle for college students.

As a college student, some months I make more than 25 transactions because I pay for transportation, get textbooks, and cover other daily expenses. These day-to-day transactions include debit card transactions, Interac e-Transfers, online bill payments, and more. I might make several small purchases, even within the same day. For example, I might grab coffee or snacks between classes, buy supplies for school projects, and occasionally treat myself to a meal out with friends. These small transactions can surpass 25 in a month quite quickly. Having an unlimited number of free transactions ensures that I don’t have to worry about counting each transaction in order to avoid fees.

If there is a transaction limit, one of the workarounds is to withdraw a large amount of cash just to avoid bank transactions. This is inconvenient as well as unsafe.

Access to ATMs

Access to a network of ATMs is important to avoid withdrawal fees. An important consideration is whether the bank has a large network of ATMs near my home, campus, and other frequently visited locations. Some banks also partner with other ATM networks to provide fee-free withdrawals. This feature is important because as a busy student, I often need quick and easy access to cash. The last thing I want is to be stuck in a situation where I can’t find a nearby ATM and have to pay extra fees just to get cash.

Online and mobile banking

I need comprehensive online and mobile banking options. This allows me to check my balance, transfer money, pay bills, and deposit cheques conveniently from my phone or computer. I rely heavily on the budgeting tools that are offered on some of the mobile banking apps, as they help me manage my finances and keep track of my spending habits. With a busy college schedule, the convenience of handling my banking online is a must. I need to be able to monitor my account in real-time, set up alerts for low balances, and manage my finances without having to visit a physical bank branch.

For example, during exam periods, I barely have time to leave the library, let alone visit a bank branch. Online banking enables me to quickly transfer money to friends for shared expenses or check my account balance between study sessions. Additionally, mobile cheque deposits save me trips to the bank. The ability to handle these tasks online saves me time and stress, allowing me to focus more on my studies.

Chequing, savings, or both

Another thing I look for in a bank account is being able to have two separate bank accounts – traditionally, this means having a separate chequing and savings account. This helps with budgeting. By not having quick access to my savings, it forces me to be conscious about moving money to my chequing account, and also gives me peace of mind in case my debit card is compromised.

I have seen some accounts that are a bit of a hybrid, where you only need one account. This could be viewed as a convenience. However, for now I prefer having two accounts. Therefore, even if I had a so-called hybrid account, I would want the ability to have multiple accounts in order to separate my day-to-day spending from the rest of my money.

Nice-to-haves

Interest rate

I haven’t mentioned interest rate yet. For sure, higher interest is better, and this should become more important over time as I save more money.

Rewards

Some banks offer rewards or incentives for opening an account. This could include cash bonuses, higher interest rates on savings (for a short period), or discounts on certain services. While these shouldn’t be the only factor in my decision, it can be a nice added benefit. For instance, a cash bonus for opening an account can provide an extra financial boost, and discounts on services like movie tickets or dining can help me save money while enjoying college life. Additionally, some banks offer reward programs where I can earn points for every transaction, which can be redeemed for gift cards, travel, or other perks. These extras not only make banking more rewarding but also help me maximize the value I get from my account.

Writing cheques

I have never written a cheque in my life, although I would bet the need will arise at some point. (Or maybe we’ll all look back and laugh at those people who needed to write cheques!) Whether I can get a first cheque book for free or not is not a major decision point for me.

Branch access

My needs don’t require a physical bank branch at the moment. I can foresee some major financial milestones requiring branch access, such as needing a money order for a down payment. However, over time, more and more of these needs can be done online. I am comfortable assessing such needs when I get there.

So… which bank should I choose?

When it comes to choosing a student bank account, it’s really important to think about what I need for my spending habits and financial goals. For me, having unlimited free transactions is a must since I often go over the limits set by some banks. Plus, easy access to ATMs and great online banking are super important.

After doing some research, I am debating between EQ Bank, Neo Financial, Simplii Financial, Tangerine Bank, and Wealthsimple. They all come with no monthly fees, a decent network of ATMs in Canada, and would be suitable for me now as a student and after I graduate. Though these are all online banks, I can still have full access to my accounts, withdraw or deposit money into my account, and access most of the features that the big banks offer. Over time, I anticipate having a relationship with multiple banks in order to access some features that I might only rarely need.