College students can get some of the best banking deals
Although most of the customers are absolutely peeved with the way the banks have been hiking up the fees on their checking accounts and also phasing out the debit card reward programs, one group in particular seems to be enjoying a whole lot of benefits and perks – the college students.
As students are heading back to their campuses this year, banks are enticing them with products that have better terms such as a longer duration on the zero-interest promotional offers on credit cards, flexible debit card rules, and no-fee checking accounts. Most of these perks and benefits are designed for college students exclusively and are attached to checking accounts and credit cards that are meant for them. These deals are growing in number, but there is no data on the growth of products that are aimed specifically at college students. This trend is likely to continue for some more time. Richard Barrington who is an analyst at another website that tracks banking rates has stated that college students are really fortunate that banks are still favoring them and value them.
College students have managed to remain an important segment for most banks despite being wary of extending credit to them. Banks look at it differently and for them this is one way to grab youngsters who are on their way to the top. This is an important move when it comes to credit cards, as most people will go by their conventional wisdom and hold on to their oldest cards to be able to have a better credit history. Students are no longer considered to be a risky segment.
Senior counsel at American Bankers Association, NessaFeddis states that students in fact performed better than the rest of the cardholders in US, as they kept up with payments and also carried lower balances.
This makes students a less risky segment state the experts. Students under the age of 21 will now have to show proof of income or assets, or should be able to get a co-signer if they have to receive a credit card. Hence, there is very little chance of a default under such circumstances. In some cases, banks are also looking at ways and means to make profits out of college students, despite the rules that are aimed at keeping the charges and fees low. Banks are going to see less revenue from October due to the change in debit card rules, but banks are offering more prepaid cards now to counter that issue.
