What is a student checking account?

By Carina Boucher | Citizens

There are plenty of lessons you can teach your teen as they grow up — how to manage time, how to make better decisions and how to be financially responsible and eventually, independent. Unfortunately, we can’t help you with making sure they do their chores or are home before curfew, but we can help you learn about the benefits of co-owning a checking account. You’ll be able to monitor how they spend their money and help them make good financial decisions while still giving them some independence. Learn more about the Student Checking account, co-owning a checking account with your student, and more.

What is a student checking account and how is it different from a regular checking account?

A student checking account is just that — a checking account geared toward students. It’s just like an account for adults, but with different benefits. A great time to open one of these accounts with your teen is when they get their first job. You can open the account with them at a branch or online¹, and set up their account with direct deposit from their new employer.

These accounts are great because, in addition to their many benefits, they can help teach healthy personal finance habits. The benefits of a Citizens Student Checking account include:

• No ATM fees from us. When your student needs cash and has a Student Checking account, they can use any ATM without incurring a fee from us.² The owner of the ATM may still charge a fee.
• No overdraft fees. Avoid overspending with no overdraft fees.³ This is a valuable feature because it helps prevents overspending.
• No monthly maintenance fees. You don’t need to worry about getting charged monthly just to maintain your account.
• Bundled savings account. When your student has a checking account with us, it’s a good idea to open a savings account as well. They can make transfers from their savings to their checking if they need some extra funds in their account. They can also set up automatic transfers from their checking to their savings to grow their savings account.

The icing on the cake? Once your student turns 25, their Citizens Student Checking account will automatically convert to a One Deposit Checking from Citizens®. There are no forms to fill out, no numbers to call, and no need to visit a branch.

Benefits you can feel good about

There are quite a few benefits of co-owning a student checking account with your student. A few of them are:

• Teaching financial responsibility. When you own a checking account with your student, you’ll be able to talk about what they want to spend their money on and use it as an opportunity to teach budgeting, saving, and responsible spending. They’ll also be able to familiarize themselves with checks, a debit card, a mobile app*, digital wallet, and even mobile deposit⁴.
• If your student has a savings account at Citizens, they’ll also be able to take advantage of Citizens Savings Tracker®⁵, a tool in the Citizens app that will help them build their savings to reach a personal goal. So, if your teen wants to save for their first car, a new cell phone or even put money towards college, they’ll be able to set financial goals they can achieve.
• Control and oversight. You’ll be able to keep an eye on what your student is spending their money on, and if they have any unusual spending activities or a low balance on their account. They’ll still be able to have some independence, but being able to monitor their account ensures that they’ll start building good spending (and saving) habits at a young age, while still being able to have some independence.
• Building a relationship with a bank. As your student gets older and their financial needs grow, they’ll be happy they have a longstanding relationship with a bank. Whether they have questions about personal loans or mortgages as they get older, they’ll have a trusted advisor that they can ask.
• Convenience and accessibility. Being a co-owner allows you to easily transfer funds to their account for their allowance, emergencies, or any other expenses that they might need a little extra cash for. This is an especially great feature if your student is away at college and you can’t get to them quickly — being able to transfer money from your account to theirs is instant, and they’ll have access to it right away.
• Setting a good example. Parents can be the best role models — showcasing your financial awareness and teaching them along the way can help reinforce values about money, especially spending and saving.
• Trust and transparency. Starting the conversation early around money, specifically about saving and spending habits, fosters open communication between parents and children. This will not only help build trust between you two, but it will also help your student build confidence.

The beginning of their financial adventure

There are many benefits to opening a checking account with your student — it can not only foster communication and trust, but it will help your teen learn fiscal responsibility. With a Citizens Student Checking account, you can both access it 24/7 through our mobile app,* bank securely with fraud monitoring and account alerts, and discover easy ways to pay for purchases with their debit card or their digital wallet right on their phone. They’ll also be able to quickly and easily pay back their friends with Zelle®⁶.

When you’re ready to help your student start their financial journey, we’re here to help every step of the way. Check out our Student Checking Page and learn more about opening a Student Checking Account with Citizens.