There are a wide variety of options when looking for a student checking account. It makes sense to shop around and find out what is available. It also helps if you know what you are looking for in a bank and a checking account. Being a student in college or getting ready for college, you will be a prized customer for any bank or credit union. Although you probably don’t have lots of money and maybe no investments at all, you do have a bright future, and the bank wants your business.

Not all financial institutions are created equal. Not by a long shot. You must remember that all of them are in business to make money and you represent a customer they can earn money from. All financial institutions hope that they will earn your loyalty so that when you graduate and begin earning a salary you will stay with the bank (or credit union). Most students, upon graduation and earning a decent job, will be thinking about purchasing a house or car, maybe even getting married and raising a family. Doing these sorts of things all require money that the bank can loan to you and make a substantial profit. What you want to focus on is finding a bank that will stick with you now when you are not a big profit center for them and have them earn your loyalty over a number of years.

It is important to approach the quest for an excellent checking account with the right attitude. Remember that it is your money you are giving to the bank to hold on to and manage. It is you who are doing them a favor. It is they who must prove themselves worthy of your money and trust.

Getting ready for college? We have ways for you to save money on textbooks for the upcoming year

There are many options you need to consider. It is important that you know how you will be doing your banking most of the time (online or in person, debit card vs. cash, do they offer student credit cards, etc.). Some institutions will offer interest on their checking accounts which is a very nice option, since it means that you will be earning money on your deposits. Others will offer no fees on their checking accounts. This too is a very attractive feature, but read the fine print. There may be minimum balance requirements or a limited number of transactions allowed on the account.

Do you anticipate doing a lot of online banking? What about using debit transactions while you shop? You need to investigate how your bank or credit union will handle these types of transactions. What about banking on the fly with your Smartphone? These questions are important because it will determine which bank is right for you. The convenience of online banking, mobile apps and how the computer interface works for you is critical.

If you understand the options and possibilities of various checking accounts you can make an informed decision. Remember that just because you are young and currently without large sums of money does not mean that you will stay this way forever. All banks want your business based on your potential to earn them profits. Make them work for your money and earn your trust.

Earn a $50 bonus when you open an Electric Orange checking account from ING DIRECT.

The recently launched Electric Orange Checking account is ING Direct’s high-yield checking account. This checking account provides a user-friendly interface for making payments and, for a fee of $15, it offers 24-hour payment delivery. It also features same-screen initiations for electric (ACH) or paper payments. In addition, existing ING Direct customers can set up this new account in a mere 30 seconds. As for ING’s high payment limits, they are: Paper; $100,000 per day, debit card; $25,000 per day, ACH; $5000 per day, and ATM withdrawals; $1,000 a day. The Electric Orange Checking account does not charge any fees and their website and online access are both easy to use.

The “no paper checks” method of doing business is a feature that is unique to ING’s Electric Orange checking accounts. Instead of paying with paper checks, you will generally use online bill pay. In order to be able to hand a paper check to someone (since those cases still exist), the send-paper-check feature allows you to mail yourself a check and then you can give it to whoever you choose. It can take a couple of extra days for you to receive this check by mail, which is one potential drawback for Electric Orange accounts.

In an ideal world, the payee who will receive the check will accept this type of payment. As an added step, however, that person must provide you with their bank account number, as well as their routing number, which is another potential drawback for this type of account.

After you request a paper check to be sent, the money will be instantly deducted from your account and an email will be sent to your recipient, so you must also tell them to look for it. He or she can then use the link from the email to access a secure page and confirm their account information. Provided their entry matches what you initially entered, the transfer will be completed.

If your payee is reluctant to share account information, ING suggests pointing out that every time they have written a check both their account number and their routing number were visible on the bottom of the check, so the information is already in circulation publicly. While this is true, many people may still be hesitant to hand out this kind of private information, which is something to consider before opening an ING Electric Orange Checking account.

In summary, the no paper checks feature can work for many people, but it does come with inherent limitations. The Electric Orange checking account boasts decent interest rates, but there are also higher rates available from other rewards checking accounts. Still, if you are looking for a no-fee checking account that is safe, hassle-free and linked to a large institutional bank, ING’s Electric Orange account could be the perfect solution for your banking needs.

Special Offer: Earn a $50 bonus when you open an Electric Orange℠ checking account.

With no ATM fees, no overdaft charges and no monthly fees ING is one of the most popular online banks going now, and ING is one of my favorite online banks that I personally use it for both savings and checking accounts. Instead of letting my money sit in my bank account I transfer it to my ING Direct accounts and earn interest… money for free? Sign me up!

Want more free money? Sign up for ING Direct Right Now

Even if you don’t read the newspapers, watch TV or listen to the radio, you have to know that the nation’s economy is in the midst of a huge slump right now. Just take a walk around your neighborhood. You’ll see more than a few “For Sale” signs outside its homes. And you can bet that these signs have been poking up from their front lawns for many months.

The housing market has actually been in the dumps since the middle of 2006. That’s when the rapid appreciation of homes suddenly came to a halt. Not only that, housing prices began to fall.

In some states, such as California, Nevada, Florida and Arizona, housing prices actually plummeted. Homes that were once selling for $1.5 million, are now struggling to attract offers at listing prices of $800,000.

And according to the latest statistics from the National Association of Realtors, this sad reality isn’t changing any time soon. National housing prices are down 0.7 percent in the first quarter of this year from where they stood in the first quarter of 2009. And remember, 2009 was considered to be a truly terrible year for the residential housing market.

But bad news for home sellers equals good news for home buyers. The drop in housing values means that this is actually a terrific time to buy a home.

The first reason is obvious: With housing prices so much lower, you can buy more home for less money today. This holds true even in the hottest neighborhoods of big cities such as New York City, Chicago, Los Angeles and Washington DC.

But there are other reasons why this is such a great buyers’ market. First, sellers are desperate. This means that they’re willing to negotiate on most anything. If you want an additional $10,000 lopped off the asking price, request it. The odds are good that the seller will accommodate you. Sellers are also more willing to replace leaking roofs and be flexible on closing dates, all in the hopes of landing a sale.

Finally, with housing sales having slowed since 2006, buyers have plenty of residential inventory from which to choose. And when the number of homes for sale at any one time is high, this means that sellers, again, become desperate to make their residences stand out. Often, doing this means offering their homes for a bargain price.

While interest rates are at an all time low, this might be the best time to take out a personal loan. The following tips will help you before you take out a loan, as there is more to consider than just a low interest rate.

Just want to take out a loan? Click Here to get started

Shop around

Many banks and lenders are eager for business, despite restrictions placed on them since the fallout from the financial crisis. Those with good credit will be able to get competitive rates from multiple lenders and play them off against one another. The trick is to read the fine print very carefully when you are comparing loan offers.

It is NOT all about the interest rate

Before signing on the dotted line be sure to ask your lender what the total amount repayable (TAR) will be. This TAR figure will tell you exactly how much your loan will cost you over the course of the payback period. This figure will include interest charges and any fees that may be applicable. Find out if there are any repayment conditions. Some loans will allow you to take a payment holiday or freeze, and while this may sound good, you will still be charged interest during this rest period, so your total cost actually increases over the long run.

Early repayment charges

If you are able to repay the loan early you can save lots of money in interest charges, but beware because the lender wants your money. The fine print may contain a clause that pertains to early repayment and you may have to pay a fee or additional interest if you repay the loan early. This is a major warning sign. It can be worth your time to find a loan agreement that allows for a penalty free early repayment.

Insurance

The bank will most likely offer you some sort of payment protection insurance equal to the value of your loan. What this means is that if you die or become sick the insurance will cover the payments for you. It sounds great and is often only a few additional bucks each month, but it is almost never worth it. You can purchase term insurance for a much higher amount and at a much cheaper rate from an independent insurance company. There are also restrictions on lenders insurance since they don’t medically underwrite the insurance at time of purchase – in other words, it is possible to pay the premiums and find out later that you don’t qualify. You should only take out lender insurance if you don’t qualify for regular insurance.

Check your credit rating

Know in advance if your credit rating is great, good, poor, or bad. Depending on this score you will either qualify for the best rates, or not. Often the best advertised rates are only available if you have a good credit history.

Consider the alternatives

A personal loan can be expensive. If you don’t need a large sum of money consider a credit card with a 0% introductory interest rate. This will allow you to spread the cost of the purchase over a period of time (sometimes up to 18 months) with no extra charges. Another option to consider is a line of credit versus a loan. With a line of credit you are only charged interest on the amount you actually spend, so if you don’t withdraw any money you will not be charged.

Finding banks that offer free checking accounts can be difficult these days, especially now that government regulation has forced banks to pass fees on to their customers to try to regain profits.

Below is a list of banks that still offer free checking accounts, along with some of their terms and conditions. If you have a bank that you would like to add please leave the info in the comments section so we can use this as a resource for readers to find the best free checking accounts around the country.

Online Banks

ING Direct

ING Direct does not have a monthly fee for their Electric Orange checking accounts. They also give you free access to 35,000 ATM’s nationwide and (my favorite part) have no overdraft fees. (They do however charge interest for the amount overdrafted for each day your account remains overdrafted)

Click Here to sign up for ING Direct Checking

Ally Bank

Ally Bank is another popular online bank offers checking accounts with no monthly fees. They also offer no fees for ATM’s nationwide, PLUS if you use another bank’s ATM they will reimburse you for the fees that the other bank charges for the transaction (awesome!)

Click Here to sign up for Ally Bank Checking

National Banks

Bank of America

Bank of America’s MyAccess Checking is free when you either 1) have a direct deposit of at least $250 per month or 2) maintain a balance of $1500. If neither of these apply to you it’s a $12 a month fee. So yes, Bank of America offers “free checking” but only if you met certain criteria.

Chase Bank

Chase Total Checking has no monthly service fee if you ether 1) have a direct deposit of $500 or more every month, 2) maintain a $1500 balance or 3) have an average daily balance of $5,000 or more in linked deposits or investments. If you don’t meet these criteria, you get a $12 fee.

Citibank

Citibank does not appear to have any minimum balance or direct deposit requirements (at least at the time I am writing this). To get free basic checking at Citi you need at least 5 “qualifying transactions” which include a direct deposit, a debit card transaction or a qualifying bill payment. If you don’t complete this you get an $8 fee.

Local Banks and Credit Unions

Fortunately many smaller banks and credit unions that still offer free checking. I’m not going to try to list them all here but there are some things you should try to look for. If you are willing to put up with some restrictions (minimum balances, online account management, bill payments, direct depositing of your pay check, etc.) then you will find that you have many more options to find free checking accounts.

Why do banks and credit unions offer free checking accounts? Since it is free, they are not making any money on your business, so why do they do it? The single biggest reason is that it is a loss leader. Like when the grocery store offers peanut butter or toilet paper for a crazy low price. Customers come in for the sale items, but then they usually continue their shopping and make additional purchases that the grocery store makes a hefty profit on. The banks are hoping that you will sign up for free checking and then continue to use some of the other services that the bank offers, such as a credit card, a mortgage, investments, or any of their other services.

Since the downturn in the economy and the financial crisis, fewer and fewer banks are offering free checking. Soon there will most likely be limits on their ATM and interbank fees, so the banks are withdrawing their free services to make up the expected shortfall. With a little homework, however, you can still find smaller banks and many credit unions that do offer free checking.

The best free checking accounts will have the following features:

• No minimum balance requirements
• No ATM fees
• Free Debit Card transactions
• Free online access for account management
• Unlimited monthly checking
• No minimum check writing amount
• Free online bill payments
• Free checks (usually a quantity of 100)
• Reimbursement of non-bank ATM fees
• Overdraft protection

The major downside of free checking is that you are giving up earning interest on the account. There are exceedingly few checking accounts that offer interest, and of those that do, the interest rate is very low. Giving up very little or no interest to save on fees seems like a good trade off. Especially if you also have the ability to transfer your balance between a high interest savings account and the checking account online (instantaneously). You can usually find that some checking accounts are what they call ‘rewards checking’. This is basically like building up customer loyalty points (frequent flyer miles for one), but you will need to pay close attention to the fine print, as there are usually some hoops to jump through on these accounts.

In addition, free checking usually means that you are giving up the right to access cancelled checks, although you may still see an image of the signed check online. Stop payments and check return are also usually not available on free checking accounts. If these services are important to you then you should consider a premium checking account. Otherwise, your overall savings for using a free checking account will more than make up for the few times you need to pay for those particular services.

Disclaimer: This info was valid at the time of this writing and may have changed. As always terms and conditions apply, so please read all terms and conditions before signing up for ANY bank or investment account. ING Direct and Ally Bank are affiliates of Before You Invest.

One of the greatest things about online checking accounts like ING Direct (see our ING Direct review) is the convenience they offer. Instead of having to physically go into a bank during business hours and stand in line, you can simply power up your computer, login and start banking. If you need cash, you can use your debit card at one of thousands of ATMs (Automatic Teller Machine). You can perform nearly any transaction online that you can do in person at a brick and mortar bank, especially day to day activities like paying bills and transferring money.

Another nice feature of online checking accounts is the ability to download your transaction history into your money management software of choice. You can do this for Adaptu and Mint.com, or a host of others, which allows you to drill down and really discover where your money is going. This feature alone can save you hundreds of dollars or more.

Perhaps the most used feature of online accounts is the ability to pay monthly bills on your own schedule. You can login and register your bill payments any time of the day or night. Once it is done, you can set up regular recurring payments so that you will never be late making a bill payment again.

Some of these online checking accounts do have small monthly fees associated with them, but others are completely free, so shop around. You can find accounts that offer free checking, reward points, cash back on purchases, high interest rates, no fee ATM access and other perks. Like regular checking accounts the online variety are also insured by the Federal Deposit Insurance Corporation (FDIC) for amounts up to $100,000 so your money is secure.

Many online checking accounts have recently upped the convenience factor by allowing you to bank from your smart-phone through a mobile app. Talk about banking on the fly. Think you still have to find an ATM to deposit your check, think again. If you have a scanner and high speed internet access, there are some online accounts that will let you scan and send deposits right from the convenience of your own home.

Since most online banks offer some of the best interest rates on their savings accounts, having a checking account at the same virtual bank is a great idea. You will be able to link the two accounts and transfer money between the two to take advantage of the very high interest savings and the convenience of online checking. You can therefore keep the bulk of your money earning very high interest and just transfer what you need over to the checking account for purchases.

Transferring money between accounts has never been easier. Some accounts today have what is called a Person2Person transfer that allows you to move money directly from your account to someone else’s account. If they also bank with the same virtual bank that you do, the transfer is instantaneous. This way, if you have an IOU you can just transfer the cash electronically and the debt is paid.

When looking for a bank it really pays to shop around. The key, of course, is knowing exactly what type of bank is right for you. Are you looking for excellent customer service? Are you looking for the best interest rates? Will you be banking online, at the ATMs or in person? Do you need basic checking or savings accounts, or perhaps something more complicated? Once you have determined the type of bank that you are looking for, you can begin your shopping experience.

Most people primarily use their bank account to write checks and pay the bills. Determine if your bank charges a monthly fee for this type of account. Can you get unlimited checks, or do you have to pay a fee for transactions over and above a certain number? Some banks will offer free checks when you open an account, which can save you money right off the bat.

Are the online services free of charge, or is there a fee? In today’s world many people bank 24/7 and online is the only way to go, especially as many banks link up with online money management services like Microsoft Money or Mint.com.

Another important question to ask is what the bank charges for overdraft protection. This means that if you go over by a small amount the bank will cover the overage instead of charging you for a non-sufficient funds (NSF) cheque. This can be very useful if your paycheck bounces or if you receive multiple checks from a variety of different sources – especially if any them come from overseas banks (which can sometimes take several days to clear).

It is also important to enquire about ATM machines. Are there any near where you live and work? What does your bank charge for using another bank’s ATMs? Are there a certain number of free accesses before the fees apply? Does your bank offer a high security chip debit card for your purchases? What sort of protection is offered by the bank if your card is stolen?

If you are looking for a savings account, then you are probably most concerned with the interest rate. Be sure that your bank is protected by the Federal Deposit Insurance Corporation (FDIC) so that amounts up to $100,000 will be insured if your bank goes belly up. Some of the best rates are offered by online banks, so these are really worth a close look.

Naturally it is a good idea to have a relationship with a bank before you need a loan, but in looking for a bank, be sure to examine their loan rates. Even a half percentage point difference can really add up over the life of the loan.

Commercial banks will typically charge higher fees, but often they are more accessible and can handle more complicated transactions. Savings and loan corporations will have more of a small town feel and really concentrate on offering great personalized service, but they may be off the beaten path and hard to reach. A credit union can be a great way to save on fees and get good loan rates, but you must meet membership requirements. You don’t want to jump from bank to bank year after year because there are benefits that come with establishing a relationship with a financial institution – like better lending rates or getting a good reference – which you will jeopardize by switching. Have a little patience and do your homework. You will end up saving money and finding the bank that is perfect for you.

HSBC Advance is widely considered to be one of the best online savings accounts available (see our ING Direct review and Ally Bank review for more information on the other popular online banks). With one of the top interest rates, ease of use and a variety of other excellent features, HSBC Advance (formerly HSBC Direct) competes very well with other leading names.

Benefits of using HSBC Advance

High annual percent yield. Compared to a typical bank interest rate, the HSBC Advance rate is far superior (at the time of this writing). While the interest rate does vary over time according to economic conditions it is still much better than a traditional savings account.

No minimum balance. You can open an account with just $1 unlike many other banks that require a minimum deposit.

No monthly fees. Whether you have an active account with multiple transfers each month or a completely static account, you will never be charged a fee. This feature alone can save you hundreds of dollars over the course of just one year.

Easy to use interface. Online account management software is very intuitive and easy to understand and use. You can transfer money, view your account and access statements all within your HSBC Advance account.

Multiple connections. You can connect your account to as many other savings and checking accounts as you would like, including those from other institutions, so you can easily keep track of your savings.

Drawbacks of HSBC Advance

Interest rates are dropping. This is a variable interest rate account that can be changed frequently as has been shown over the past year. Partly this is due to the poor economy and it is hoped that as the economy recovers the interest rate will rise once again. HSBC Advance is not alone in this.

Slow bank transfer speed. HSBC Advance seems to take up to five business days to transfer money between institutions, where other online institutions are able to make the transaction in less than three business days. Be sure to anticipate this extra time when planning your deposits and withdrawals.

Customer service. There have been reports that at times the call in customer service record has been spotty. This all depends upon your own experience, however, and will vary from rep to rep.

Slow account activation process. This is really a reflection of the increased security consciousness of HSBC. Since they separate the dissemination of login, user name and password, it can take a week or sometimes more to begin using a new savings account. The user name is issued via email, whereas your password is received by snail mail. This is a security measure, but can be inconvenient.

To get started opening an HSBC Advance savings account simply go to the website and apply online. You will need all of the usual personal information, but one nice feature is that if you get called away from the computer for some reason, HSBC will save the information you have already entered so you can come back later and resume the application process at the exact spot where you left off.

In the old days there were only a few online banks to choose from but today the competition is fierce, especially between the two big players… Ally Bank and ING Direct (see ING Direct review). Ally bank was formerly known as GMAC bank and probably makes you think about bailouts and wonder if your money is safe. The answer is yes: Deposits are guaranteed by the FDIC, up to a maximum of $250,000 for each depositor.

Opening an Ally Bank account can be done online, calling toll-free or filling out an application and mailing it in. They have several types of accounts available:

• Interest checking
• High interest savings
• Money market
• 3 different CD accounts – high yield, no penalty, and raise your rate CD

Interest checking: Ally’s interest checking carries no minimum balance requirements. If you do maintain a balance above $15,000 you may qualify for a higher rate. A big bonus here is that you get free ATM access. If another bank charges you a fee, Ally will refund you the amount at the end of the month. You also get free checks, unlimited online access and transactions including bill payments. When you open an account, you also get a free debit MasterCard.

High-interest savings. Ally’s High Yield Savings Account interest rate is usually way above most major banks. Once again no monthly fees, no minimum balance and you get 6 transactions per month (deposits are free).

Money market. The Ally Bank Online Money Market Account currently carries no monthly fees, no minimum balance requirements, comes with a check card and the first 50 checks are free. ATM fees are refunded and you are allowed 6 free transactions per month.

CD Accounts:

• High yield – no minimum, no monthly fees and the interest rate varies depending upon the length of the term.

• No penalty – no minimum, no monthly fees and no penalty for early withdrawal.

• Raise your rate – no minimum and no monthly fees. If rates increase during this time you can raise the rate once per term to capture the higher interest.

Ally Bank offers everything a traditional bank does, but with fewer fees and better interest. They are also available in Canada. All of this makes Ally Bank a solid choice for online banking.