The biggest banks generally have robust apps and big branch networks, but their account fees can be high. In contrast, regional banks and credit unions – the not-for-profit counterpart to banks – might have lower fees and more of a community focus, but they have fewer branches and might lag in technology. Online banks can have minimal fees and high-quality apps, but they often lack a branch network and the ability to deposit cash isn’t guaranteed. Nationwide ATM access is usually available at credit unions and online banks through shared networks, but they might not be as easy to spot as big bank ATMs. Just don’t limit your options to only accounts marketed as “college checking.” You might miss out on banking features you’d want. Check for fees Watch out for fees on monthly maintenance, ATM usage and overdrafts. You can often avoid a monthly fee, such as $5 or $10, by having a certain minimum balance or direct deposits into your account – or by finding a checking account without monthly fees. Using an ATM to withdraw cash outside your bank’s network can trigger a fee of around $2 to $3 from your bank, plus a fee from the ATM operator. And overdraft or nonsufficient funds fees can be $30 or more per transaction, which will kick in if a payment drops your account balance below zero. Carla Sanchez-Adams, senior attorney at the National Consumer Law Center, recommends looking into Bank On certified accounts, which don’t have overdraft or NSF fees. Transactions that would bring an account balance below zero get declined instead. Plus, these accounts can have screening practices inclusive of those with less banking history. You might have to pay fees for some services, such as getting a checkbook. “Not every account is going to be completely free,” says David Rothstein, senior principal at Cities for Financial Empowerment Fund, who manages Bank On, CFE Fund’s national platform that promotes financial inclusion. Factor in account security This year, there have been three bank collapses. While bank failures are rare, federal deposit insurance protects your money. If a bank fails, you get up to $250,000 of your money back. Banks get insured through the Federal Deposit Insurance Corporation, and credit unions have the equivalent protection through the National Credit Union Administration. However, it’s more complicated with accounts at newer financial tech firms, such as Chime and Current, as well as with debit cards at firms like Cash App and PayPal’s Venmo. These companies typically partner with banks to provide “pass-through” FDIC insurance in their accounts. But if these companies fail, getting your money isn’t as straightforward as with a bank. This uncertainty is one reason why tech firms’ accounts aren’t eligible to be Bank On accounts.

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