14 Best Small-Business Checking Accounts of 2021

February 10, 2021 by Liam Lane Posted in Banking, Money Management, Podcasts, Small Business Tagged ATM, Banking, Cash Back, CD, Checking Account, Credit, Credit Card, Debit Card, Direct Deposit, Fees, Financial Wize, FinancialWize, freelancers, How To, keep, line of credit, lists, Make, market, Mobile App, Mobile Banking, Mobile Check Deposit, money, Money Management, Money Market, More, News, Online Banking, Personal, Purchase, real, Rewards, save, savings, Small Business, tax, Taxes

Small-business owners know that business banking is a little different from consumer banking. Our master list of the best online banks around is surprisingly short on business checking accounts with no monthly maintenance fees, minimum balance requirements, or monthly transaction limits. Most business bank accounts do impose transaction limits and demand hefty minimum balances to waive high monthly maintenance fees.

That puts microbusiness owners and solopreneurs at a distinct disadvantage. And it’s a stark contrast to the consumer banking world, where the best free consumer checking accounts cater to individuals and joint account holders who aren’t swimming in cash.

But the picture isn’t uniformly bleak.

The best small-business checking accounts have low minimum balance requirements to waive their monthly maintenance fees (or no monthly maintenance fees at all) and enough fringe benefits to keep things interesting for account holders. Some pay interest as well. All are FDIC-insured.

And once you know where to look, you’ll find ample small-business checking options to choose from.

1. Chase Business Complete Checking

$300 Bonus for New Account Holders Who Open With Qualifying Activities

Chase Business Complete Checking has a category-leading bonus opportunity for new account holders: $300 when you open a new account (with no minimum deposit required) and complete the required qualifying activities.

Moving forward, you can avoid the $15 monthly maintenance fee in multiple ways, including maintaining a minimum daily balance or making qualifying purchases on your Chase Ink Business credit card. Plus, enjoy unlimited electronic deposits, ACH, and mobile check deposits via Chase QuickDeposit.

Chase has ATMs and branches in the following states: AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, KY, LA, MA, MI, NV, NJ, NY, OH, OK, OR, TX, UT, WA, WV, WI. This offer is available online nationwide, except for residents of AK, HI, and PR.

Minimum Deposit and Balance Requirements: There’s no minimum deposit or ongoing balance requirement.
Yield: None.
Rewards and Incentives: Open a new Chase Business Complete Checking account and complete qualifying activities to earn a $300 bonus. This offer expires April 15, 2021.
Possible Fees: Chase offers multiple ways to waive the $15 monthly maintenance fee.

Apply Now

2. BlueVine Business Checking

No Fees; Earn 1.00% APY on All Balances

BlueVine Business Checking is a branchless free business checking account with an excellent yield for account holders and no transaction limits, in-network ATM fees, or NSF fees. It’s also one of the few branchless business bank accounts that comes with free checkbooks. But setting up one-time and recurring payments is a snap with BlueVine too.

Minimum Deposit and Balance Requirements: There’s no minimum balance requirement or monthly maintenance fee.
Yield: Earn 1.00% APY on all balances up to $100,000.
Rewards and Incentives: BlueVine does not impose transaction limits, unlike many business bank accounts. Each new account comes with two free checkbooks. Withdrawals are free at about 38,000 in-network ATMs.
Overdraft Options: BlueVine may decline overdraft or NSF transactions at its sole discretion but does not impose overdraft or NSF fees.
Possible Fees: BlueVine has virtually no fees.

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3. Axos Bank Basic Business Checking

Earn a $100 Account Opening Bonus With Qualifying Activities

Axos Bank Logo With no monthly maintenance fee, unlimited ATM fee reimbursements, a fantastic welcome bonus for newly incorporated businesses and long-incorporated businesses alike that open accounts by the stated offer end date and a nice remote deposit feature that you can use just about anywhere, Axos Bank Basic Business Checking is a fantastic alternative to Axos Bank Business Interest Checking. Apply 100% online (no paper forms required) and enjoy paperless statements once you’re signed up.

Minimum Deposit and Balance Requirements: The minimum opening deposit is $1,000, but there’s no monthly maintenance fee.
Yield: None.
Rewards and Incentives: Here’s how to earn the $100 welcome bonus: Apply for your new Axos Bank Basic Business Checking account by the stated offer end date, then maintain an average daily balance of at least $5,000 during the first three months (new funds only). This offer is subject to change or revocation at any time at Axos Bank’s sole discretion.
Overdraft Options: Axos Bank customers can opt into an overdraft line of credit that covers overdrafts the bank would typically return unpaid. The interest rate is variable but comparable to a high-interest credit card, and payment of at least 5% of the balance (or $25, whichever is greater) is due each statement cycle.
Possible Fees: $0.30 per item processed after the first 200 items each month.

For more information, read our Axos Bank review.

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4. Lili

Totally Free Checking With Automatic Tax Savings and Financial Insights

Lili Logo The Lili Account is a truly free, all-in-one checking solution that’s built with freelancers in mind. In practice, it appeals to a much broader audience: side hustlers and gig workers supplementing W-2 income, established solo professionals (one-person businesses), and full-time freelancers.

With Lili, these folks don’t need separate bank accounts for personal and business needs — just Lili. Its signature benefits include a sub-account that simplifies tax savings, early payday for qualifying account holders, instant expense categorization, and a powerful cache of financial insights and expense management tools to help you spend (and save) smarter. Plus, its “emergency bucket” feature enables savings transfers as small as $1 a day.

Minimum Deposit and Balance Requirements: Lili has no account fees or minimums.
Yield: Lili doesn’t pay interest. Check back often for the latest offers.
Rewards and Incentives: Lili’s referral program pays $25 per successful referral to Lili and promises a bonus of $1,000 when you deliver 10 successful referrals. Plus, Lili makes it easy to set aside funds earmarked for tax payments, has helpful expense management and categorization tools (like quarterly expense reports), promises an early payday for account holders with direct deposit (up to 2 days early), enables cash deposit at more than 90,000 locations around the U.S., and delivers real-time alerts about transactions and other account activities.
Possible Fees: Lili charges no account fees.

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5. Wise

Earn Up to 1% on Deposits With Qualifying Spend; Get $100 Credit After Sign-up

Wise 5e961d64942a2f00f64d30dc Primary P 800 is a mobile-friendly business banking and payments solution with no hidden fees and a juicy cash back rate that’s more than enough for active users to offset the $10 monthly fee.

All Wise balances earn a 0.5% base incentive, credited monthly, and purchases earn an additional cash back incentive of 0.1% per $1,000 spent (up to 0.5% maximum on a $5,000 monthly spend). Wise has an impressive offer for new account holders as well: a $100 credit in your Wise account after you sign up and spend $1,000 on your Wise card within the first 30 days.

Minimum Deposit and Balance Requirements: There’s no minimum deposit or ongoing balance requirement.
Yield: Wise balances earn a 0.5% base incentive.
Rewards and Incentives: For a limited time, earn a $100 credit in your Wise account when you sign up and spend $1,000 on your Wise card during the first 30 days. Moving forward, earn 0.1% cash back incentive per $1,000 purchased on your card, up to a maximum of 0.5% ($5,000 spend) per month.
Possible Fees: See Wise’s fee disclosure for a full accounting of possible fees.

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6. Brex Cash

50,000 Bonus Points After Account Approval; No Fees or Minimums

Brex Logo Brex Cash is a user-friendly cash account for growing businesses. With no fees or minimums, a generous welcome offer and ongoing rewards program, and an expansive lineup of value-added perks worth $150,000, it’s difficult to find fault here. Take full advantage of the powerful mobile app and don’t miss the super-simple advance payment scheduling tools, either.

Minimum Deposit and Balance Requirements: Brex Cash has no account fees or minimums.
Yield: None.
Rewards and Incentives: Spend $1,000 after your account is approved and open to earn 50,000 bonus Brex Rewards points. Plus, earn points on every purchase and enjoy perks worth $150,000.
Possible Fees: Brex Cash has no account fees.

Learn More

*Brex Treasury LLC is not a bank; Brex Cash is not a bank account.

7. Novo Powerfully Simple Business Banking

Thousands of Dollars in Exclusive Perks Available to Account Holders

Novo’s Powerfully Simple Business Banking product is another maintenance fee-free option for small-business owners and self-employed people. An easy application process, nice account opening bonus, robust mobile features, integrations with other useful small-business tools, and virtually no fees all count as standouts here. If you’re done with branch-based business banking, put Novo at or near the top of your list.

Minimum Deposit and Balance Requirements: The account opening minimum is $50, but there’s no ongoing minimum balance requirement and no monthly maintenance fee.
Yield: None.
Rewards and Incentives: Enjoy thousands of dollars in exclusive perks — see Novo’s website for details.
Overdraft Options: If Novo chooses to honor an overdraft, there’s a $27 insufficient funds fee per item. The returned-item fee is also $27 per item.
Possible Fees: Other than its insufficient funds and returned-item fees, Novo has virtually no fees.

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8. Radius Bank Tailored Checking

1% Cash Back on Debit Card Transactions for Qualifying Customers; 0.10% APY on Balances Above $5,000

Radius Bank Tailored Checking Radius Bank Rewards Checking doesn’t have the best yield in the business checking space, but 0.10% APY on balances over $5,000 is better than nothing. Pair that yield with no limits or fees on transactions — ever — and you have an excellent account for active businesses able to keep some cash on hand. Mobile check deposits and a powerful debit card app (which includes a card-locking feature) simplify banking on the go.

Minimum Deposit and Balance Requirements: The minimum opening deposit is $100. The $10 monthly maintenance fee is waived with a minimum daily balance of $5,000 or more.
Yield: 0.10% APY on balances over $5,000.
Rewards and Incentives: After your Tailored Checking account has been open for at least 30 days, keep an average balance of $10,000 or more in the account to qualify to earn 1% cash back on signature-based debit card purchases online and in-store. Cash back is automatically credited to your Tailored Checking account at the end of the month following the earning period.
Overdraft Options: If you opt in to overdraft protection, there’s a $5 daily overdraft fee as long as your account remains overdrawn (up to 30 days). Fees begin accruing on the fifth calendar day after the first overdraft item hits.
Possible Fees: Radius Bank charges between $10 and $40 for wire transfers, depending on origin and destination.

Learn More

9. NorthOne Business Banking

Unlimited Payments, Deposits, Transfers & Debit Card Usage

NorthOne Business Banking is a refreshingly simple business banking platform that prides itself on “radically transparent pricing”. Just $10 per month unlocks its full slate of features, including unlimited payments, transfers, deposits, and debit card transactions; more than 300,000 in-network ATMs; mobile check deposit (and a slew of other mobile-friendly features); and unlimited sub-accounts for payroll, taxes, and more.

Minimum Deposit and Balance Requirements: The minimum opening deposit is $50.
Yield: None.
Rewards and Incentives: NorthOne Business Banking is chock-full of useful features, including more than 300,000 ATMs in-network, unlimited sub-accounts for taxes and payroll (and other functions), mobile check deposit, and unlimited transactions.
Overdraft Options: NorthOne charges a one-time overdraft fee when your account balance drops below $0. See pricing terms for more details.
Possible Fees: The monthly maintenance fee is $10. NorthOne may also charge for wire transfers, overdrafts, NSF transactions, and ACH/PAD returns.

Learn More

10. Axos Bank Business Interest Checking

Up to 0.81% APY on Eligible Balances

Axos Bank Business Interest Checking Axos Bank Logo is the highest-yielding small-business checking account on this list — paying up to 0.81% annual percentage yield (APY) on qualifying balances. Throw in a low minimum opening deposit requirement, and you’ve got a solid choice for business owners looking to earn a real return on working capital.

Minimum Deposit and Balance Requirements: The minimum opening deposit is $100. You must maintain a $5,000 minimum average daily balance to waive the $10 monthly maintenance fee.
Yield: Earn 0.81% APY on balances up to $49,999.999. Earn 0.50% APY on balances between $50,000 and $249,999.999 and 0.20% on all balances above $250,000.
Rewards and Incentives: Enjoy unlimited domestic ATM fee reimbursements and 50 free checks when you open your account.
Overdraft Options: Axos Bank customers can opt into an overdraft line of credit that covers overdrafts the bank would typically return unpaid. The interest rate is variable but comparable to a high-interest credit card, and payment of at least 5% of the balance (or $25, whichever is greater) is due each statement cycle.
Possible Fees: $0.50 per item processed after the first 50 items each month.

For more information, read our Axos Bank review.

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11. Citizens Bank Clearly Better Business Checking

No Monthly Maintenance Fees, Ever

Citizens Bank Logo Citizens Bank Clearly Better Business Checking is one of the only business checking accounts that never charges a monthly maintenance fee. That’s excellent news for business owners working on thin margins.

This account also boasts a relatively high monthly limit for free transactions and generous overdraft options. On the negative side of the ledger, it doesn’t pay interest and isn’t available in all areas — Citizens Bank’s trade area is limited to the East Coast. But if you do live in an area served by Citizens Bank, you can hardly do better.

Minimum Deposit and Balance Requirements: The minimum opening deposit is $100. There’s no ongoing balance requirement.
Yield: None.
Rewards and Incentives: None.
Overdraft Options: Citizens Bank offers two overdraft options, both opt-in: an overdraft line of credit and an overdraft savings transfer program. Both charge $12 for each day an overdraft transfer occurs, regardless of the number of transfers on that day. The savings transfer option is otherwise free, but the line of credit costs $30 per year. The required credit line payment is the greater of $20 or 2% of the balance.
Possible Fees: $0.50 per item above the 200 monthly transaction limit.

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12. NBKC Business Checking Account

Virtually No Fees and No Balance Requirements

Nbkc bank The NBKC’s business checking account has no balance requirements, no monthly maintenance fees, and no transaction fees. As part of the MoneyPass ATM network, it offers fee-free withdrawals at more than 32,000 ATMs in the U.S. and Puerto Rico. And its simple Desktop Deposit feature — with added support from a robust mobile banking app — makes it easy to deposit checks remotely.

Minimum Deposit and Balance Requirements: There’s no minimum balance requirement.
Yield: None.
Rewards and Incentives: Get up to $12 in monthly refunds for ATM fees charged by any other banks worldwide, plus mobile-friendly features like bill pay.
Overdraft Options: NBKC offers a courtesy overdraft sweep option. See account disclosures for details on how this works.
Possible Fees: Other than domestic and international wire fees — $5 to send a domestic wire and $45 to send or receive an international wire — NBKC has virtually no fees.

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13. Huntington Bank Unlimited Business Checking

Access to Exclusive, Potentially Valuable Business Perks

Huntington Bank Unlimited Business Checking is for established businesses with relatively large cash stockpiles and relatively frequent transaction needs. Other than a $10,000 monthly limit on free cash deposits (after which a fee applies), there’s no limit on transaction frequency. And customers can select one from a menu of exclusive money-saving perks, such as discounts on payroll services.

Minimum Deposit and Balance Requirements: Avoid the $40 monthly maintenance fee with $50,000 or more in combined average deposits across all eligible accounts. See Huntington Bank’s website for additional details.
Yield: None.
Rewards and Incentives: Choose from one of several exclusive perks, such as 10% off Paychex payroll services.
Overdraft Options: Huntington Bank offers two opt-in overdraft protection options: an overdraft protection account (with a transfer fee but no annual fee) or deposit-to-deposit overdraft protection (which does charge an annual fee but no transfer fee).
Possible Fees: $0.30 fee for each $100 in cash deposits above the $10,000 monthly limit. Other fees may apply.

Learn More

14. TIAA Bank Business Checking

High Monthly Transaction Limit

TIAA Bank’s business checking account boasts low- or no-cost overdraft protection options and a robust suite of mobile-friendly features. It’s ideal for customers who can make the $1,500 minimum opening deposit and keep enough cash on hand ($5,000 or more) to waive the monthly maintenance fee. A reasonably high monthly transaction limit appeals to businesses with active cash flows.

Minimum Deposit and Balance Requirements: The minimum opening deposit is $1,500. You’ll avoid the $14.95 monthly maintenance fee if you have a minimum daily balance of $5,000 or more.
Yield: None.
Rewards and Incentives: None.
Overdraft Options: There’s no monthly or per-item fee for TIAA Bank’s overdraft protection services, which include money market transfers (with a qualifying linked account) and a credit line. If you enroll in an overdraft protection line of credit, the late payment fee is $25.
Possible Fees: $0.25 per item above the 200 monthly transaction limit; $0.50 per item above the 10 monthly online bill payments limit.

Learn More

Final Word

These small-business checking accounts aren’t always the stars of the show at their respective online banking institutions. Most of these banks offer multiple personal and business deposit accounts. Several make our lists of banks with the best CD rates and the best money market rates, and some offer enticing high-yield savings accounts to boot.

So even if you come for the low-cost small-business checking, you could find yourself staying for more. There’s something to be said for doing all your banking under one roof — and your bank certainly won’t mind.

Source: moneycrashers.com

Where to Open a Business Checking Account Online

February 10, 2021 by Liam Lane Posted in Loans, Small Business Tagged ATM, bank of america, Banking, Budgeting, Checking Account, covid-19, Credit, Credit Card, Debit Card, Fees, Financial Wize, FinancialWize, Mobile Banking, Mobile Check Deposit, More, nerdwallet, Online Bill Pay, Personal, Rewards, Security, Small Business, Spending, tax

Both digital banks and some brick-and-mortar institutions allow you to open a business checking account online. Although brick-and-mortar banks have expanded their online capabilities, especially during the COVID-19 pandemic, you’ll find that big-name, national banks are more likely to provide online applications compared with smaller, local institutions.

Here’s a roundup of some of the top places to open a business checking account online and what you can expect during the process.

How to open a small-business checking account online

Whether you’re opening a business bank account from a brick-and-mortar institution or digital-only bank, doing so online is generally faster and easier than visiting a branch location and applying in person.

Although the process will vary slightly depending on the individual bank, you should be able to complete and submit your online application in a matter of minutes.

To open a business checking account online, you will need to:

Provide basic information about yourself and any additional business owners.
Include personal identification, such as a driver’s license or Social Security number.
Provide essential details about your business, like your tax ID number.
Upload legal business documentation, which will vary based on your entity type.

If the account requires a minimum opening deposit, you will also need to fund that deposit — by ACH transfer, check or debit card — before submitting your application. The bank will refund or cancel the deposit if your application is denied.

Top places to open a business checking account online

(Scroll right for additional account options.)

BlueVine Business Checking

BlueVine Business Checking is an online-only business checking account with no monthly fees, no minimum opening deposit and no minimum balance requirements. This account includes unlimited fee-free transactions and allows you to earn 1% annual percentage yield on balances up to $100,000.

The BlueVine business checking account also offers fee-free ATM access at any MoneyPass location in the U.S. and gives you the ability to deposit cash ($4.95 fee per deposit) through the GreenDot network. With this online business bank account, you receive access to mobile check deposit and online bill pay. You also can connect your account to third-party tools such as PayPal, Stripe and Expensify.

You can apply for this business checking account by creating an account and completing an application on the BlueVine website.

Novo business checking

Novo business checking is a free business bank account with no monthly fees, no minimum balance requirements and unlimited fee-free transactions. Novo requires a $50 minimum deposit to open its online-only business checking account.

With Novo business checking, there are no ATM fees and you receive unlimited refunds on all ATM fees charged by other banks worldwide. The Novo business checking account also includes free bill pay, free mobile check deposit and free check mailing.

In addition, Novo offers integrated invoicing, a budgeting tool and direct account integrations with business tools like Stripe, QuickBooks and TransferWise. Unlike some online business bank account competitors, however, Novo cannot accept direct cash deposits.

You can apply for a Novo business checking account by signing up for an account and submitting an application on the website.

Radius business checking

Although Radius does have a small brick-and-mortar presence in Boston, the Tailored Checking account is an online-based checking account available to business owners across the U.S. The Tailored Checking account offers unlimited fee-free transactions, fee-free ATM access (regardless of the ATM you use) and unlimited reimbursements for ATM fees that other banks charge.

This Radius business checking account has a $10 monthly fee, which can be waived with an average monthly balance of $5,000 or more, and requires a $100 minimum opening deposit. The account also offers the ability to earn 0.10% APY on balances greater than $5,000.

In addition, the Tailored Checking account includes digital banking tools, such as online bill pay, mobile check deposit and an integration with Autobooks, an invoicing and online payment software.

To open this business checking account, you can complete an online application on the Radius website.

Chase business checking

Chase offers three business checking accounts — Complete, Performance and Platinum — all of which can be opened online and by visiting a branch location. Of the three options, Chase Business Complete Checking is designed most comprehensively for small-business owners, with unlimited electronic deposits, a low monthly fee and no minimum opening deposit.

Chase Business Complete Checking has a $15 monthly fee but offers four ways to waive it, such as maintaining a daily minimum balance of $2,000. In addition to the unlimited electronic deposits, this account includes up to 20 fee-free teller and paper transactions and up to $5,000 in fee-free cash deposits per month.

With this Chase business checking account, you have access to over 16,000 Chase ATMs and 4,700 branches across the U.S., Chase’s online and mobile banking tools and Chase QuickAccept for mobile credit card processing.

You also have the opportunity to earn a $300 bonus when you sign up for this account, provided that you deposit $2,000 within 20 days, maintain that balance for 60 days and complete five qualifying transactions, which can include debit card purchases, ACH credits, or credit and debit wires.

It’s important to note, however, that Chase does limit eligible online applications to businesses that are privately held sole proprietorships, corporations or LLCs (with one member or manager). Other entity types have to visit a branch location to apply.

Bank of America business checking

With Bank of America, you have two business checking account options — Business Fundamentals Checking and Business Advantage Checking. These accounts can be opened online, over the phone or by visiting a branch location.

Regardless of the Bank of America business checking account you choose, you’ll receive unlimited fee-free electronic items, including ACH transactions, debit card transactions, electronic debits, ATM check deposits and checks deposited through mobile check deposit or remote deposit online.

You’ll also have access to Bank of America’s online and mobile banking tools, its network of 17,000 ATMs and 4,300 branch locations, and the opportunity to qualify for the Preferred Rewards program.

With the Business Fundamentals account, you will have a $16 monthly fee that can be waived with a $5,000 combined average monthly balance or by spending at least $250 in new net qualified purchases with your Bank of America business debit card. This account also includes up to 200 fee-free non-electronic items per month, 45 cents per item after that. You also receive up to $7,500 in cash deposits per month, then 30 cents per $100 you deposit.

With the Business Advantage account, you will have a monthly fee of $29.95, which can be waived with a combined average monthly balance of $15,000. This account offers up to 500 fee-free nonelectronic items per month, with the same 45-cent per item fee after that. Cash deposits on the Advantage account are fee-free up to $20,000 per month, then 30 cents per $100 you deposit.

To apply for either of these Bank of America business checking accounts, you can complete and submit an application on the Bank of America website. Unlike Chase, Bank of America doesn’t implement restrictions based on entity type.

More options to open a business checking account online

Choose the right business checking account

According to a 2019 study from BAI, a research and training nonprofit for business owners, nearly 70% of small-business owners said they would prefer to open a deposit account online, even though a majority still reported visiting a branch to open a new financial account.

Whether you opt to open a business bank account online or in-person, you can streamline the process by preparing documentation ahead of time and following all instructions carefully.

Before applying, you’ll want to compare business checking account options and consider factors such as monthly fees, transaction limits, ATM access and additional banking tools in order to find an account that’s right for your financial needs.

Source: nerdwallet.com

6 Tips for Successfully Managing a Checking Account in College

January 29, 2021 by Liam Lane Posted in Credit 101 Tagged ATM, Banking, Banking 101, budget, Budgeting, Budgeting Basics, car, Career & Education, Cash Back, Cash Back Rewards, Checking Account, College Life, Convenience, Debit Card, Fees, Finance, Financial Education, Financial Planning, Financial Wize, FinancialWize, gas, How To, Life, Managing Your Account, Mobile App, Mobile Banking, money, Online Banking, Online Bill Pay, Online Checking Account, personal finance, Purchase, Quick Tips, Rewards, Rewards Checking Account, savings, School, Security, Spending, Starting Out

Heading off to college is exciting. Really exciting. You finally have freedom! You’re out on your own for the very first time, managing your studies, managing your social life and… managing your finances.

Despite being a big part of your newfound independence, personal finance is a subject you probably won’t find on your course schedule. If you didn’t take a personal finance class in high school and never had money lessons from your parents, you may not know how to manage a checking account as a college student.

“College students have very different needs for their checking account than their parents or other adults,” says Tommy Martin, CEO of Clear Path Financial Planning and a finance blogger at TommyMartin.com. If you live in a different city during the school year than you do during winter and summer breaks, for example, you may be after a bank for which location doesn’t matter.

Ok, so how do I manage my checking account in college, you ask? First, don’t get overwhelmed. Learning how to manage money while in college and getting a handle on checking account basics is simpler than you might think (oh, and the skills will serve you for years to come). Second, you can kick off your checking account education with these tips for managing a checking account in college:

1. Compare checking accounts before signing up

While your college life may center around your school campus, you should consider venturing off-campus to pick the right checking account for your lifestyle.

“Students typically sign up with a bank that’s on campus or close to campus,” says Sahil Vakil, a financial planner and president of MYRA Wealth in New Jersey. However, the nearest bank might not be the one that best fits your needs, he adds.

Wondering how to manage money while in college? Be sure to compare checking accounts to find one that meets your needs while you're in school.

Instead of picking a bank based solely on proximity, consider all of your options, including banks with off-campus locations and online-only banks.

Martin agrees, saying that learning how to manage money while in college means considering all of your banking options rather than “automatically enrolling or choosing the official school bank just because it has the school logo on it.” There are other ways to show your school pride, after all.

2. Learn about checking account fees and rewards

Vakil and Martin both say a tip for managing a checking account in college is to consider an account’s fees before signing up. Costly fees can eat into your savings and spending money, which can be a blow for students who are not working full-time. When you are choosing a checking account in college, consider fees for:

Monthly maintenance (essentially keeping your account open)
Minimum balance (not maintaining one)
ATM usage
New checks
Wire transfers
Online bill pay
Replacement debit cards

Martin says a checking account with no minimum balance requirement or minimum number of transactions could be a good fit for students. “It allows them to focus on their education” instead of worrying about incurring penalties, he says. “Even a $5 fee on a checking account with $60 in it can be devastating.”

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Costly fees can eat into your savings and spending money, which can be a blow for students who are not working full-time.

Martin also suggests finding an account that has a large network of no-fee ATMs located across the country to better manage your checking account as a college student. “Especially if you’re going to a school in a different state, the local bank from home might wind up costing you a lot in terms of ATM fees,” he says. If your parents plan to wire you money, find an account that doesn’t charge incoming wire fees, Martin adds.

While fees should be a focus when you are learning how to manage money while in college, don’t forget about incentives. You may be able to find a checking account that actually helps you grow your balance by paying interest or offering a cash back rewards program.

“If you have to pay for books or supplies, at least you can get some cash back and use it for a free dinner,” Martin says. Discover Cashback Debit, for example, offers 1% cash back on up to $3,000 in debit card purchases each month.¹

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3. Track your checking account balance

Luckily, you don’t need to take Banking 101 to figure out your funds, and tech makes tracking your balance and account activity easier than ever. Most banks let you log in to your account online (don’t get distracted in class!), and with a bank’s mobile app you can transfer money to friends, pay bills, deposit checks and check your balanceâall while you’re on the go.

Knowing your balance at all times is a tip for managing a checking account in college because it can help you avoid overdrafts and insufficient funds fees. It can also help you forecast your income and expenses to ensure you’ll have enough money to cover future costs. Surpriseâthat’s budgeting!

There’s no one-size-fits-all budgeting program or system, though. You can go old-school and track your budget on a printed-out budget sheet, or you can go tech-savvy with a budgeting and spending app. “What’s best for you is the one you’re actually going to use,” Martin says.

If you learn how to manage money while in college and make a practice of maintaining your budget, the habit will follow you after graduation.

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âCollege students have very different needs for their checking account than their parents or other adults.â

– Tommy Martin, CEO of Clear Path Financial Planning and finance blogger

4. Secure your account

One of Vakil’s tips for managing a checking account in college is to make sure your account stays secure. Create a unique account name and password that you use only for your checking account, and never share your credentials.

Vakil says you can also enable two-factor authentication if your bank offers it and you’re looking for another way to improve the management of your checking account as a college student. “This additional layer of protection safeguards your sensitive financial data and strengthens the security of your account by requiring two methods of verifying your identity.”

For example, if you log in to your account from a new device, you may be sent a text message with a code that you’ll need to enter to access your account.

5. Keep an eye out for debit card holds

No matter where you bank, a merchant may place a hold on funds in your checking account when you use your debit card. Generally, a hold is placed for travel-related purchasesâsuch as at rental car companies, hotels and gas stationsâand used by merchants to protect against fraud and errors.

To manage a checking account as a college student, keep an eye out for debit card holds, especially while traveling.

“Holds on a debit card can make it tricky for you to manage your finances,” Vakil says. For example, “when you rent a car, the car rental company might put a $500 hold on your account. If the balance in your account was $550, now you can only use another $50.”

Being aware of holds can be particularly important if you are managing a checking account as a college student and tend to have a low account balance.

If a merchant will be placing a hold, it will generally post a sign to notify customers. The hold will typically be removed after the funds are transferred to the merchant from your financial institution, typically within three to four days.

Knowing when a hold will be placed, the amount of the hold and how much money you have in your checking account can help you manage your checking account as a college student by avoiding overdrafts and missed bill payments due to insufficient funds.

6. Don’t let one mistake throw you off track

If you can learn how to manage a checking account as a college student, and more generally, how to manage money while in college, you can lay the groundwork for a solid financial future. Checking account mistakes may occasionally happen (oops, I didn’t budget enough for that spring break trip), but don’t let them discourage you to the point of apathy. Instead, try to continually expand your knowledge and practice healthy financial habits.

¹Â ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^Â® and PayPal, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.

The post 6 Tips for Successfully Managing a Checking Account in College appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com