I’m 16 (soon to be 17), and going off to college in Boston next year. I’ve been using Webster Bank for two years now, but they don’t have any branches outside Connecticut. This will be inconvenient to say the least.
So, who can recommend me a bank? I’m looking for very simple services: checking, savings, and a decent online bill-payment system. So far I’m thinking Fleet, just because they seem reasonably large and dependable.
Also, two other questions:
Can I get an account in my own name before I’m 18? Currently my account has both my name and my mother’s on it, which is a little annoying.
Ditto for a credit card. I have a check card from Webster now, but I want a credit card a) for the added fraud protection, and b) so I can build credit history. Don’t worry, I’ll always pay the balance in full each month.
Is a credit card something I’d get from the bank along with opening an account, or do I have to go to a separate company for that? Is there any reason to shop around for a card anyway, since I don’t intend to carry a balance?
No advice on the bank, but re: credit cards, it pays to shop around a bit. If you’re never going to carry a balance, you can pretty much ignore the interest rate. But you should definitely look for a card with no annual fee.
If possible, you should find a card that also provides some benefits, like some cash back (it’s usually not a lot, like 0.5%, but that’s better than nothing) or airline miles. The catch is that the cards that provide the bennies often stick you with an annual fee, so it isn’t worth it unless you’re charging a shitload of stuff.
Most banks want you to take their credit card (it’s another way for them to make money, after all), but if the terms aren’t right for you, look elsewhere. It’s been so long since I was young, I don’t know whether your age will make it tough to get a credit card from someone other than your own bank - it might, so you might only be able to get one from whatever bank you end up planting your money in.
When i moved to the US a few years ago, the first financial institution i joined was a Credit Union. Low fees (or no fees), and good service. There were a couple of problems, though. Firstly, they had very few ATMs, and then only here in the Baltimore area. Any other ATM withdrawal cost me money. Second, they don’t do credit cards, and i had lots of trouble finding any credit card company to accept me because i had no credit history in the US.
For these reasons, i switched to Bank of America. They have a large ATM network, so i don’t get charged fees for cash withdrawals. They have a student checking account (i’m a grad student), which has no monthly fees as long as i have my paychecks (i’m on a grad fellowship) direct deposited to the bank. Finally, and best of all for me, they guaranteed a credit card to any college or university student. They also have a good online bill paying system. I haven’t written a check for a gas, electric, or telephone bill for the last two years. And–icing on the cake–they even have an agreement with the Westpac bank in Australia, so i can withdraw cash from Westpac ATMs when i make a visit home without being charged any fees.
Because i had no credit history, the limit on my credit card was initially only $800, but i have started to build a credit rating since then, and the limit has gradually increased. I don’t even know what the interest charges are, because so far i’ve always paid it off in full.
I’m sure someone will be along soon to tell you that Bank of America is the devil, but so far they have served my limited financial needs rather well. One thing to consider, however, is how many branches and ATMs they have in the Boston area, where you will be spending most of your time. Some cities are better served than others; i remember that they were pretty hard to find in Chicago.
Just a quick note, the Visa debit card I had through Fleet was a “Gold” debit card, and offered me the same exact protections as an actual credit card. Didn’t help me build credit, of course.
You should at least investigate the credit union situation. I have a credit card through my credit union; their ATMs are connected to the large network other small banks. Fleet and other big banks try hard to sign up new students. Don’t sign up with them just because you want a free frisbee.
Despite my recommendation of Bank of America, above, i completely agree that, if you can find a credit union with a decent ATM network, you should think about going with it.
