Congratulations young graduate! You must be very excited to embark on the next stage in life: adulthood. Your finances, including student loan debt, income and savings should be major concerns.
Up until now, you probably didn’t choose your own bank accounts — your existing accounts were probably recommended by friends and family. Since your lifestyle and finances will change, it’s important that you have the right mix of accounts. It’s also important to change your mindset when it comes to money. So we’re busting some money myths that some college kids can’t seem to shake and highlighting the best type of accounts for you.
We’re confident in that statement because these accounts are well-rounded packages that are appropriate for all stages of your life — whether you’re working to tackle student loan debt, getting married or buying your first home.
The accounts we picked do not have any pesky monthly or annual fees, so you can have them around without any cost to you. Secondly, they’re extremely simple and easy to understand, which you will come to appreciate, as life gets more hectic. Finally, they have perks that would be convenient for anyone.
We wouldn’t be surprised if you held onto these accounts for more than 10 years.
1. Checking account: Radius Hybrid
Myth: Choosing a checking account with the same bank as your parents is the right way to go.
Get over it. Your parents aren’t always right, and their bank probably doesn’t fit your needs.
Why you’ll love this account:
Unlimited free ATM reimbursements. You’re young and out having fun, so you probably make frequent visits to an ATM. Radius Hybrid doesn’t charge any ATM fees and refunds all ATM fees that you are charged — effectively, it lets you use any ATM you want for free.
No monthly fee. Most checking accounts require a minimum balance or direct deposit to avoid a monthly fee. You just graduated. You might not yet have a job or it may be difficult to maintain a big account balance. With this checking account, you don’t have to worry about any of that.
Overdraft line of credit. When you have a lapse in money management and overdraw your checking account, most checking accounts slap on a fee of about $35. With an overdraft line of credit from Radius Bank, you’re just borrowing that money and paying a little bit of interest — no expensive fee!
If you want a checking account that more tailored to you, use our Checking Account tool.
2. Savings account: Ally Bank Online Savings
Myth: Opening a savings means you’ll save.
Not! Just because you have a “savings” account does not mean that you’re actually doing much saving, especially when an account has terrible rates and charges monthly fees.
Why you’ll love this account:
No monthly fees. Savings accounts from big banks typically charge a monthly fee if you don’t have a certain balance. Ally’s online savings account doesn’t have this, so you can stay focused on saving.
Competitive, yet consistent rates. MyBankTracker keeps tabs on the savings rates from Ally and the rates have been consistent and competitive. Other banks may hike up their rates to very high levels only to drop them later on — Ally doesn’t do that.
Create subaccounts. Ally Online Savings allows you to make free subaccounts (which means you can divide up your savings into as many “buckets” as you want) that can be used for different savings goals that you may have.
To find a savings account for your specific needs, try our Savings Account tool.