Student banking 101: How to choose the right student bank account

Looking forward to college or university? As you plan which schools you'll apply to, what posters to put up on your dorm walls and start following your potential future alma mater's TikTok tags to get a sense of campus life, you might also want to think about your student bank account, credit card and line of credit options, and building a credit history. Why? Because doing so could save you a lot of money — and stress down the line.

This one's easy! It's a student bank account designed for day-to-day transactions. This is what you'll use to pay for your textbooks, Spotify membership and random debit purchases, like late-night pizza orders!

Financial institutions like Scotiabank offer student chequing accounts designed specifically with students and youth in mind. Many even offer a welcome bonus for signing up, like extra points for a rewards program, a cash bonus, a first-year annual fee rebate on a credit card or free tech when you sign up. Score! 

Here's what to look for in chequing accounts for students:

Student chequing accounts have your back as a student. They often charge zero monthly account fees and give you unlimited debit transactions (“transactions” referring here to every time you spend money), unlimited Interac e-Transfer† transactions (perfect for splitting bill payments with friends), and account statements (those things you get every month telling you how much is in your account). Some may even offer bundle bonuses if you sign up for something else (like a savings account).

What does that mean for you? You can buy as much coffee to survive those late-night study sessions as you need without worrying about service fees or transaction charges adding up.

Scotiabank’s Preferred Package for Students and Youth is a great example — you get all the essentials plus perks like earning Scene+™ points on everyday purchases,¹ free trades through Scotia iTRADE, ² eligible overdraft protection³ for those "oops" moments and even a first-year annual fee waiver (up to $150) on select credit cards.⁴ You'll be eating free popcorn, booking movie tickets and stacking rewards points faster than you can say “group project.”

Qualifying for Scotiabank’s Preferred Package for Students and Youth depends a little on your age and/or student status:

• If you're under 23, you automatically qualify — no need to show proof of school enrollment — and won't be charged monthly fees.
• If you're 23 or older, you must be a full-time student in good standing at a recognized post-secondary institution in Canada or the U.S. and provide proof of enrollment. If you’re eligible, you’ll also get $0 monthly account fees for the duration of your studies!

Bottom line? Whether you’re cramming for finals or starting your first job as a young adult, there’s a simple path to getting a great banking package that fits your life — and your wallet. 

A savings account is a safe place to store money you don’t plan to spend right away. Unlike a chequing account for everyday spending, a savings account is meant to help you set money aside — and earn a little extra money, called interest, just for keeping your savings there. Think of it as the bank’s way of saying thanks for letting them hold onto your money.

Now, you might think it’s a little bold to assume you even have savings. Isn’t that something for older people with jobs and mortgages? Fair point — but many students get big chunks of money at the start of the school year from student loans or scholarships, or they save up from summer jobs. A savings account is the perfect place to park that money safely until you need it — whether it’s for rent, textbooks or a big purchase like a car to make your campus commute a little easier.

Here's what to look for in a great savings account:

Why should you have your money in more than one place? Sounds more complicated than just putting it all in a chequing account, you're likely thinking.

Not so fast! Savings accounts pay you higher interest rates on the money you put in them. That's free money for doing nothing other than parking your cash somewhere safe.

One thing to note is that savings accounts are not meant for day-to-day transactions, like buying late-night snacks (read: pizza) or paying your cellphone bill. That's best paid out of a chequing account with unlimited transactions since savings accounts often charge for debit transactions.

Savings accounts aren’t just for rainy days. They help you build good financial habits, which later can help build a credit history or boost your credit score. Plus, transferring a little money at a time into your savings each month helps you budget and plan without dipping into your rent or tuition money.

And thanks to features like Scotia’s mobile app, you can track your saving goals and spending habits in your Scotia accounts without missing a beat.

One more thing about savings accounts: they often come with cool perks. For example, Scotia’s Momentum^Plus Savings Account gives you a progressively higher interest rate the longer you save.⁵

Here’s the deal: applying for a Scotia student chequing account is quick and painless. Just follow these steps.

Don't want to leave your house? Good news — you can set up a Scotia account in just a few minutes online. You can also drop into a branch to set everything up from start to finish. Call ahead, make an appointment and you’ll be in and out in a breeze.

Eligibility for the Scotiabank Preferred Package for Students and Youth:

• 23 or older: You'll need to bring proof of enrollment at a post-secondary institution to a branch to finalize the process.
• Under the age of 23: You're automatically eligible and can open your account without enrollment proof. 

This one's pretty straightforward. You just need to show the right documents based on your age and student status.

• If you're under 23, bring a government-issued ID — no proof of enrollment required.
• If you're 23 or older, bring both a government-issued ID and proof that you're enrolled full-time at a recognized post-secondary institution.
• If you're between the ages of 12 and 15, bring both your government-issued ID and your parent or guardian’s government-issued ID to open the account.

You definitely want to download Scotiabank’s mobile app. It’s not just for checking your account balance — it’s your go-to for tracking your budget, keeping tabs on bill payments and seeing (in real time) just how much you’ve spent on late-night takeout. Stay on top of your money and crush your spending goals — all from your phone.

At this step, it’s time to put money into your fancy new bank account. You can do it through an Interac e-Transfer, an ABM deposit, an electronic funds transfer (where you give your current bank the details for your new account), a cheque or by visiting your local branch to make a cash deposit.

Got a part-time job? You might have to set up your payroll direct deposits to feed into your new account. All you need is your branch number, your account number and your bank's institution number (Scotia’s number is 002). Unsure what those are? You can usually find them in your online banking portal. You can also ask a local branch representative to help you or call your bank.

You don't want to miss a payment and accidentally cancel your monthly gift box subscription featuring all the weird but delightful stuff celebrities are using lately. Or, horror of horrors, your Netflix! Switch over any subscriptions to your new student bank account or credit card so you don't miss out.

No need to pay banking fees on accounts you’re no longer using! So devote some free time to this task and get it off your to-do list. Once done, you’ll be all set with your student banking for the start of the new school year.

Read this far? You're now basically a student banking expert. Managing your money well is a superpower — way cooler than invisibility. With the right accounts, tools and tips, you'll be better prepared to reach your financial goals and maybe even your first big milestone — whether it's saving for a car, a trip or a new laptop. You'll also be in a better position to start planning for the far-off future (like saving to buy a home or investing for retirement).