College Student Banking 101: What To Know Before Opening Your First Account
Last Updated: September 2, 2025
Managing money on your own is a big step. Opening your first bank account is a key part of that. The right banking tools can make it easier to handle your finances.
In July 2024, over 441,000 families in Indiana had active 529 college savings accounts.[1] If your family opened one for you, it might be time for you to start managing it. And, you likely need your own checking and savings accounts.
From choosing the best account to setting up mobile alerts, there’s a lot to think about. But, it doesn’t have to be hard. Here's what you need to know about college student banking and how to get started with confidence.
Why College Students Need a Bank Account
A bank account gives you a safe place to keep your money. It also helps you build smart financial habits early.
With your own bank account you can:
Receive direct deposits like financial aid and your payroll from a job.
Pay rent or bills.
Shop online.
Grab lunch off-campus without carrying cash.
A bank account can also make things easier if your parents want to send you money or help with expenses. With the right account, you’ll have more control and peace of mind.
Types of Bank Accounts To Consider
Before you open your first account, know what types are out there. Some accounts are great for daily spending, while others help you save for the future. Many students use a mix of accounts to keep their money organized and reach their goals. Here are some ideal bank account types to think about.
1. Checking Account
Checking accounts are most people’s go-to for everyday spending. It usually comes with a debit card and lets you make purchases, withdraw cash, and set up direct deposits. Look for accounts with low or no monthly fees and easy ATM access.
To keep up with best practices, find out how much money you should keep in a checking account.
2. Savings Account
Savings accounts can help you put money aside for future needs. It earns interest, which means your money can grow a little over time. Some students use savings accounts to save for emergencies, spring break, or textbooks. Centier’s high-interest savings account and other student-friendly services may offer a solid start.
To devise your own plan, learn how to set savings goals and track your progress.
3. Student Account
Some banks offer dedicated student bank accounts with added perks. These may have low or no fees, minimal or no balance requirements, and tools to help with budgeting. They’re designed to make banking simple, particularly while you're in school.
To learn more, explore what a student checking account is and if you need one.
4. 529 College Savings Plan (If Applicable)
If your family opened a 529 college savings plan for you, this account can help pay for school expenses like tuition, books, or housing. The money in a 529 plan grows over time and can be used tax-free for qualified education costs.
If you're not sure whether one exists, ask your family if they set one up. Once you’re old enough, you may be able to take over managing the account yourself.
What To Look for in a Student-Friendly Bank Account
When choosing a bank, look for features that make student life easier, such as:
No or low monthly fees.
No minimum balance requirements.
Easy access to ATMs.
Mobile banking tools.
Parental access options, like joint accounts.
Mobile features are also helpful. Look for options like mobile deposit, account alerts, and budgeting tools. These can help you avoid getting a fee for using more money than you have in your account [called overdrawing or overdrafting your account] and keep your spending on track.
Think about ATM access and branch support that may be available near your housing or campus. Centier Bank is the largest privately owned, family-run bank in Indiana, serving communities with 61 branches across 11 counties. We have more than 60 surcharge-free ATM deposit locations throughout the state.
For more financial insights for your stage in life, browse the best financial goals for students.
How To Open Your First Bank Account
You don’t need much to open a student bank account.
Here’s what you usually need:
Government-issued ID (like a driver’s license or passport).
Your Social Security number or Tax ID.
Proof of enrollment (student ID or college acceptance letter).
A minimum opening deposit (if required).
Visit any of our branch locations, and our Centier Bank associates can go over your options and possibly help you get set up with a new account or accounts that day!
Smart Banking Tips for Students
Once you’ve opened your account, here are a few ways to keep things running smoothly:
Set up alerts. These help you avoid overdrafts or low balances.
Use mobile deposit to save trips to the bank.
Track your spending with your bank’s budgeting tools.
Start saving early. Even small deposits add up over time.
Avoid ATM fees by using your bank’s network.
Build credit wisely. If you get a student credit card, pay it off on time.
If you’re thinking about longer-term savings goals, you can also explore options like CDs and IRAs or compare saving vs. investing to see what fits your future.
Start Your Financial Journey Strong With Centier Bank
Opening your first bank account is a big move toward financial independence. With the right tools and support, it can be a smooth experience that sets you up for success. Take time to compare your options, think about what you need now, and choose a bank that’s built to help students grow.
Want help choosing the right account? Schedule an appointment today.
Source:
[1] https://educationdata.org/college-savings-statistics