Prime checking accounts for newly-minted college graduates
New graduates are in search of checking accounts that offer minimal fees, high-yield options, and tools to help build financial habits. According to Bankrate, several accounts fit the bill perfectly.
Ally Bank Spending Account
Known for no monthly maintenance fees, interest-earning on balances, and a user-friendly mobile app, the Ally Bank Spending Account is an ideal choice for college grads starting to build credit and savings habits. This account offers zero fees, high-yield interest, ATM access, early direct deposit, and a good mobile app for budgeting tools.
Capital One 360 Checking
Capital One 360 Checking provides interest on all balances without monthly fees, a large fee-free ATM network (over 70,000 ATMs), early direct deposit, and convenient in-store cash deposit options. The app also supports good money management tools.
Alliant Credit Union High-Rate Checking
This interest-bearing checking account from Alliant Credit Union comes with no monthly fees, $20 monthly ATM surcharge rebates, free first box of checks, and no overdraft fees if opted in—ideal for building habits without penalty fees. However, it requires a $25 minimum opening deposit and has no physical branches.
TABBank Spend Account
The TABBank Spend Account offers a high APY of 3.50% and 1% cash back on debit purchases with no activity requirements to unlock benefits, making it a great option for those who want a combination of high yield and rewards for spending.
These accounts collectively offer minimal or no monthly fees, some provide interest or cash back rewards, and most come with helpful mobile apps and no penalties for overdraft or low balances, aiding new graduates in forming positive financial behaviors.
When it comes to nice-to-have features, online banks and credit unions typically offer the best graduate bank account options with minimal fees and higher interest rates. Alliant Credit Union and Charles Schwab Investor Checking are particularly noteworthy for graduates who want credit union benefits without geographic limitations and those who travel internationally, respectively.
In addition to choosing the right checking account, new graduates should also focus on building an emergency fund. To do this, pair your checking account with a high-yield savings account and aim to save three to six months of expenses, starting with $1,000 as an initial goal and setting up automatic transfers from checking to savings.
While the Ally Bank Spending Account does not have physical branches or cash deposit options, it remains a strong contender for its digital features and high-yield interest. On the other hand, Capital One 360 Checking offers nationwide ATM access, interest on all balances, early direct deposit, cash deposit options at certain locations, and a top-rated mobile app for spending tracking.
However, it's important to remember that every individual's financial needs are unique. So, when picking a checking account after graduation, essential features include no monthly fees, strong mobile app, ATM access, early direct deposit, and high-yield savings for emergency funds and short-term goals.
Lastly, Bankrate recommends looking for a free checking account with no monthly fee or balance requirements, comparing among local banks, credit unions, and online banks, and ensuring free access to a broad ATM network. Beyond checking, new graduates should consider pairing with various savings options if they value having all accounts in one place. For instance, Bank of America offers savings options that may appeal to those who prefer to keep all their accounts under one roof.
The Ally Bank Spending Account and Capital One 360 Checking are examples of accounts in the personal-finance industry that offer no monthly fees, high-yield interest, and useful budgeting tools, which makes them suitable for new graduates looking to establish financial habits. Additionally, the banking-and-insurance sector's Alliant Credit Union High-Rate Checking also provides attractive features like no ATM fees and no penalty fees for overdrafts, catering to those who prioritize avoiding financial penalties while building their savings.
