8 Hidden Bank Fees That Are Draining Your Account And How to Avoid Them

You can add an overdraft to your account once your course has started. Stay on top of a Student bank account from the palm of your hand. One of the biggest offers coming from Santander is its prize draw, where one lucky winner can get £100,000. Every eligible student will get at least £20, but higher cash prizes ranging from £100 to £10,000 are up for grabs. On top of that, you’ll receive an interest-free £1,500 overdraft for three years, as long as you pay at least £500 in per term.

• Pooling resources can help avoid duplicating purchases and also reduce waste.
• We like this account because it has user-friendly digital banking tools and pays 0.25% APY.
• Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
• In some cases, institutions may allow multiple overdraft fees per day, which means a single day of poor timing can result in a customer incurring $175 or more in fees.
• If you plan to deposit or withdraw cash at some point, consider getting a student checking account from a bank with a large fee-free ATM network and/or fee reimbursement.

LendingClub Bank LevelUp Checking

They frequently offer genuinely free checking with no balance requirements or conditions that you don’t learn about until later. Credit unions typically have lower minimum balance thresholds and more reasonable fee structures. If you prefer traditional banks, ensure that you maintain the required direct deposit amount or maintain sufficient combined balances. Multiple accounts and overdrafts can be slippery, and your debts can get out of hand quickly. The Save the Student team evaluated this year’s student bank accounts, focusing on the value of interest-free overdrafts and the likelihood of obtaining them.

All you need to do is tell us the details of your old bank account and when you want the Switch to start. From great tools in our app to support your student life, to rewards like £85 cash and a 4-year tastecard, there’s a lot to enjoy. Long absences or job changes can trigger account fees you’re not expecting. For example, a service member might deploy overseas for 18 months, focusing on his mission rather than banking. When he gets back, he learns his account racked up hundreds of dollars in dormant fees.

Bank of America Advantage SafeBalance Banking

Platforms like UNiDAYS, Totum and Student Beans also offer one-off discounts on various travel providers, so it’s worth checking these before you book. Some university cities offer free bus travel on selected routes when you show your student ID – but this varies, so check with your local provider. Student discounts can go a long way in easing day-to-day costs. Major retailers often offer special promotions on essentials during key retail periods such as the start of the academic year. Whether you’re a student or a parent footing the bill, these tips from Which? Can help you cut costs on essentials, travel and day-to-day spending.

NatWest Student Current Account

Capital One MONEY Teen is a joint checking account designed for students ages 8 to 17, with a parent or legal guardian as a co-owner. You can start building credit just by using your debit card, with no credit check or credit card required. Its early direct deposit feature helps working students get paid faster, and automatic savings tools make it easier to build good financial habits. If you’re looking for a student-friendly bank account that won’t eat into your budget with fees, here are the top options for 2025.

Here’s a few steps to get started

If you want your overdraft to be made available to you, at least £300 needs to be paid into your student account within 28 days of the date that your account was opened. Note that college students under 18 typically need an adult to be a joint account owner. With Apple Pay4 or Google Pay5, you can pay for stuff with your phone or smartwatch. You can also use mobile numbers to send, spend and receive money, without having to share your bank details. Consider a Safe Debit Account, a “checkless” no overdraft fee option that is not part of the U.S.

“Whether your child is moving in with strangers or a friend, having the confidence to talk about money openly with the people you’re sharing a home with is really important,” Gammell says. “Encouraging them to spend only what they can afford helps develop better money management skills and teaches the crucial difference between needs and wants, a valuable lesson for later life,” she adds. “Clearly separating essentials from non-essentials – like takeaways, socialising, and subscriptions – can help identify areas of spending for your kids to keep an eye on,” Gammell says. So before you send them off, MoneySuperMarket’s personal finance expert Kara Gammell suggests having these six conversations… “If and when people slide a bit (such as with payments or shared duties), you should highlight this sooner (when it is easier to fix and less emotive) rather than later when it has become a real problem.

Product details have been collected independently by Forbes Advisor, may be outdated and have not been reviewed or approved by Discover. To apply for Credit Builder, you must have an active Chime® Checking Account. Chime® isn’t a traditional bank, but a financial technology company backed by Stride Bank, N.A., and The Bancorp Bank. We’ll never steer you in the wrong direction just because a company pays us. If you’ve forgotten your log in details, don’t worry, select ‘Reset my Online Banking’ for further instructions.

• As hundreds of thousands of teenagers begin university this month, many will be facing financial independence for the first time.
• A student checking account might be a good fit for you but it doesn’t have to have “student” in the name for it to be a good account for a student.
• Platforms like UNiDAYS, Totum and Student Beans also offer one-off discounts on various travel providers, so it’s worth checking these before you book.

If you’re just starting your undergraduate degree this year, you’ll have to pay your loan back for 40 years. But the longer you leave it, the more of your own money you’ll have to shell out in the meantime. A small sidenote – you don’t need to pay any council tax if you are a student, but if someone in your house isn’t, the house is liable to pay it. It’s really important that setting up bills and things like a TV licence are done before or as soon as you move in – but like the tenancy agreement, make sure you check contract lengths and break clauses. Living near your uni or having good transport links is definitely something to consider, too, as you probably don’t want to spend your entire student life travelling. There are lots of clauses and jargon that make any contract confusing and intimidating, but take the time to read it thoroughly – and if something feels wrong and doesn’t sound right, question it.

Your overdraft student bank account overdraft limit will not automatically increase in your 2nd, 3rd, or further years of study. Approval will depend on an assessment of account conduct and a review of regular funding. You’ll be charged debit interest at 35.9% APR if you go into an unarranged overdraft.

So – should you get a student overdraft?

Lastly, but most importantly, be sure to consider your needs as a banking customer. While your needs may be simple as a college student, consider what you need from a bank account before selecting one. For example, if you visit ATMs frequently, consider any ATM fees that may apply.

No minimum deposit to open

This account is best for students seeking a simple, free checking account that will prevent them from spending more than they have. Chime’s Checking Account is best for students who overdraft often and may need the extra help afforded by early paychecks. Users, though, have complained about long wait times, account issues and communications issues. We like this account because you can divide your balance between using and saving with Spendable and Set Aside categories and savings goals.

Customers under the age of 18 may be able to open an account with a joint owner. Keep frequently accessed emergency funds in checking accounts rather than savings to avoid transaction limits. Plan larger, less frequent transfers instead of multiple small withdrawals. Many online banks have eliminated excess transaction fees entirely. Savings account transaction limits can catch customers off guard.