Best banking advice for Med Students

[JourneyToMD]

Hi guys,
I thought I'd open a bank account (on my own for the first time) . Anybody have advice on which plan is best from BofA? There's one plan for students... and then they have the regular checking plan.
Do you think it's wise to get my own credit card for med school? Will I be making big purchases?
Oh- and how easy is it to get a credit card with reasonable APR? (for students like us)

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[45408]

Get the AMSA credit card. Mine has a great APR (5.9%), and you'll get a free Netter's Atlas of Anatomy if you do. Win/win situation. I already had the AMSA card, so I couldn't get the Netter. 😛

 

[AggieJohn]

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why. Are any of you planning on making purchases and then letting it sit on the card? I've never been concerned with APR. My current card has the maximum (24.99%), but has great rewards, and as long as I always pay it off, its not an issue.

 

[trichomoniasis]

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why. Are any of you planning on making purchases and then letting it sit on the card? I've never been concerned with APR. My current card has the maximum (24.99%), but has great rewards, and as long as I always pay it off, its not an issue.

you don't understand the concept of "credit" do you?

 

[LifetimeDoc]

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why. Are any of you planning on making purchases and then letting it sit on the card? I've never been concerned with APR. My current card has the maximum (24.99%), but has great rewards, and as long as I always pay it off, its not an issue.

Unless you have an income, are independently wealthy, significant other with a job, or rich/generous parents...where do you expect us to get extra money? We can't work. Our student loan maximum budgets are set by our schools, so we just can't borrow willy-nilly. A really low interest, unsecured loan like a credit card is perfect.

 

[julie29524]

I like BoA because its everywhere, and their online layout is fairly nice.

To the OP:

- Just get regular checking and regular savings, the student banking is more for young college students, not great.

- Yes, get your own credit card, build up your credit (major purchases, yes, like a computer, and hundred dollars of books). If you like a BoA one, its really nice to have your checking, savings, and credit card amounts all on one webpage, you can easily see where you stand in your financial situation.

- What you want to avoid is withdrawing more money from your checking account than you have in there, even if you have overdraft protection, they will still charge you crazy fees.

- of course, pay off your credit card as much as you can.

Good luck.

Hi guys,
I thought I'd open a bank account (on my own for the first time) . Anybody have advice on which plan is best from BofA? There's one plan for students... and then they have the regular checking plan.
Do you think it's wise to get my own credit card for med school? Will I be making big purchases?
Oh- and how easy is it to get a credit card with reasonable APR? (for students like us)

 

[yobynaes]

i have an account with BoA. it's very convenient to have your bank on the same street you live which is the case for me living in chicago-BoA's everywhere. I don't have their credit card, however, for im used to the format of my citi credit card.
To AggieJohn, i'm with you, buddy... i supposed neither of us understand the concept of the credit cards, right? 😉 OR, we understand the truth behind credit cards all too well.

 

[SoCuteMD]

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why. Are any of you planning on making purchases and then letting it sit on the card? I've never been concerned with APR. My current card has the maximum (24.99%), but has great rewards, and as long as I always pay it off, its not an issue.

you don't understand the concept of "credit" do you?

i have an account with BoA. it's very convenient to have your bank on the same street you live which is the case for me living in chicago-BoA's everywhere. I don't have their credit card, however, for im used to the format of my citi credit card.
To AggieJohn, i'm with you, buddy... i supposed neither of us understand the concept of the credit cards, right? 😉 OR, we understand the truth behind credit cards all too well.

I'm with AggieJohn and yoby here. I have great credit. My credit cards have a total limit of somewhere around 22,000 as I've paid them off almost every month since I opened my first one at age 18. It's great having 22K of credit, but I'm not sure what would actually happen to me if I maxed it out .

 

[somemaybedoc]

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why. Are any of you planning on making purchases and then letting it sit on the card? I've never been concerned with APR. My current card has the maximum (24.99%), but has great rewards, and as long as I always pay it off, its not an issue.

I agree; I just go for whatever rewards I can get and pay it off. Credit card debt tends to have lots of catches.

 

[45408]

you don't understand the concept of "credit" do you?

It doesn't sound like you do either. You don't need to carry a balance to build good credit - in fact, that information isn't even reported to the big three credit bureaus. They only report whether or not you paid on time, and how much of your available credit you're using (which is why you want a high limit).

 

[trichomoniasis]

It doesn't sound like you do either. You don't need to carry a balance to build good credit - in fact, that information isn't even reported to the big three credit bureaus. They only report whether or not you paid on time, and how much of your available credit you're using (which is why you want a high limit).

ah but that's not what we're discussing.

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why

the majority of credit card users don't pay off their balance at the end of the month.

The people who use credit cards this way, as a means of solely building credit, have the money to pay for whatever they're charging outright, but take advantage of the benefits of using a credit card (ie. rewards or positive credit building of having a credit card and never being late on payments).

The majority of people who use credit cards use them to purchase goods or services that they don't have the liquidity to pay for outright. This is the concept and purpose of "credit." What you spend on your credit card is essentially a loan so you can spend money you don't have on something you wouldn't be able to afford if you couldn't pay it back in small increments+interest.

It's important to note I'm not bashing using credit cards to your advantage to build credit and never paying a cent of interest, it's a smart move as our economy is essentially exclusively based on credit and not liquid assets.

However, saying you can't comprehend why a low interest rate is desirable is just plain stupid.

Say you have a stupid low apr like 5%, you could go buy a $10,000 home theater setup and pay it off over a year or whatever, paying a nominal interest fee. It's not like you could pay off your $10,000 balance at the end of the month. This is what credit cards are meant to be used for (and what credit card companies like their customers to use them for).

Think of it this way: if you pay off your credit card every month and never pay interest, the CC company makes no profit. CC companies make TONS of profit. Therefore, tons of people are paying interest on their credit card balances, the lower your interest rate, the less interest you pay.

Still confused, AggieJohn?

 

[Katya00]

I went for student checking, they give you free checks. I didn't go for their credit card however, way too high.

If you can get affiliated with a credit union (through family for instance) get a credit card that way. The limit won't be that high, but the APR should be fairly low, especially for a person with a limited credit history. My first card, when I was 21 and had a very limited credit history, had an APR of 5.9% because I got it from a credit union. They also have great rates for car loans.

If you are looking to purchase something expensive and plan on paying it off quickly find a card that gives you 0% for one year, like a Platinum Visa. I used one to pay for my wedding expenses and will pay it off before the rate increases.

 

[megadon]

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why. Are any of you planning on making purchases and then letting it sit on the card? I've never been concerned with APR. My current card has the maximum (24.99%), but has great rewards, and as long as I always pay it off, its not an issue.

Most people don't, which is where they make their money. But if you haven't missed any payments, and had it for six months, you can call them and ask them if they will reduce your APR.

Best bank, I use USAA, however not everyone can join, need to have been in the military or be a spouse or child of someone who has. Great interest rates on savings, incredible actually. Downside, no bank to go to. You mail or scan in and email your checks, but they refund ATM fees. Best car insurance rates too.

 

[AggieJohn]

However, saying you can't comprehend why a low interest rate is desirable is just plain stupid...

...Still confused, AggieJohn?

Thanks for clearing that up. Now if I could learn how to feed and bathe myself, I'd be set!🙄

 

[DickyV]

Can't say I'm the biggest BoA fan, but it is convenient to have a nationwide bank - particularly with the amount of moving I've done the past few years. Plus, if you're going to school any distance from home, it's good to have a bank that you can use both during school and when you're home for vacations.

I just signed up for an Orange online savings account through ING - seeing loans are disbursed twice a year, I might as well earn 4.5% interest on the money and reduce the temptation to spend my entire loan check in the first month of classes.

If you're a bit more investment savvy, you may want to consider short-term CD's (although they can be a pain to set up) or T-bills. You'll earn a higher interest rate and receive your money on a regular basis. Of course, if you do either of those, you should make sure you keep enough cash in your savings and/or checking to cover unexpected expenses.

 

[63768]

ah but that's not what we're discussing.

ah but the advice you're giving is read as "don't pay off your balance in full and let yourself pay interest." i couldn't care less what the majority of credit card users do concerning their balance. that's why credit cards are so lucrative. people think they can just forgo making a payment and take the interest hit.

as prowler said, having a balance doesn't build credit. the act of having a credit card and being a good holder builds credit.

 

[mudphudwannabe]

The best advice is probably to not seek banking advice from a bunch of goof-off med students on the internet and seek the help of someone who actually has expertise in this area. 🙄 Now, I'm not sure who the best person to give objective advice is...any thoughts?

 

[trichomoniasis]

Thanks for clearing that up. Now if I could learn how to feed and bathe myself, I'd be set!🙄

at the very least it would reduce the number of your ignorant posts on SDN...

 

[trichomoniasis]

ah but the advice you're giving is read as "don't pay off your balance in full and let yourself pay interest." i couldn't care less what the majority of credit card users do concerning their balance. that's why credit cards are so lucrative. people think they can just forgo making a payment and take the interest hit.

as prowler said, having a balance doesn't build credit. the act of having a credit card and being a good holder builds credit.

I'm not advising anything. I couldn't care less how people use and/or abuse their credit. I was responding to a simple question regarding a particular user's complete lack of understanding regarding interest rates.

 

[Mardi-Bob]

Using credit cards to buy stuff you don't have the money for is stupidity... sadly most of America is stupid. I only use credit cards to buy stuff, but I never hold a balance on them. This allows me to build credit since I don't have a mortgage, loans, etc.

Oh and for when you get a credit report... Carrying a balance on your credit card, even if you are still in good standing (i.e. making minimum payments or higher) it is a Negative and Lowers your credit score!(Doesn't mean you have bad credit, but if you are a credit score number hog.....it matters)

 

[trichomoniasis]

Using credit cards to buy stuff you don't have the money for is stupidity... sadly most of America is stupid.

we borrow money for homes, we borrow money for cars, we borrow money for school. what the hell is "stupid" about borrowing money for expensive toys?

there's nothing wrong with having debt as long as it doesn't get away from you. It is stupid to get buried by debt but using a credit card to finance large purchases doesn't make you an idiot, it makes you a consumer.

 

[Mardi-Bob]

we borrow money for homes, we borrow money for cars, we borrow money for school. what the hell is "stupid" about borrowing money for expensive toys?

there's nothing wrong with having debt as long as it doesn't get away from you. It is stupid to get buried by debt but using a credit card to finance large purchases doesn't make you an idiot, it makes you a consumer.

Sorry I should have stated it more clearly. I find it STUPID when people buy plasma TV's instead of health insurance... If you can still afford it after you make yourself socially responsible and not a future burden then go ahead.

Also, I'm never state anything as an absolute as absolutes do not exist(good thing to remember when arguing).
Just b/c carrying a credit card balance is not ideal doesn't mean responsible people can't do it.

 

[RokChalkJayhawk]

Most people don't, which is where they make their money. But if you haven't missed any payments, and had it for six months, you can call them and ask them if they will reduce your APR.

Best bank, I use USAA, however not everyone can join, need to have been in the military or be a spouse or child of someone who has. Great interest rates on savings, incredible actually. Downside, no bank to go to. You mail or scan in and email your checks, but they refund ATM fees. Best car insurance rates too.

I use USAA for my checking, credit card, auto and renter insurance. And my car loan. They essentially have all my money🙂

If there is a way you can get on it, I suggest that you do so ASAP.

 

[RokChalkJayhawk]

I just signed up for an Orange online savings account through ING - seeing loans are disbursed twice a year, I might as well earn 4.5% interest on the money and reduce the temptation to spend my entire loan check in the first month of classes.

This is a good idea. I am taking all the money my school gives me and putting it into an HSBC savings account at 5.05%

Look into this to at least make a little money off your huge loans.

 

[somemaybedoc]

This is a good idea. I am taking all the money my school gives me and putting it into an HSBC savings account at 5.05%

Look into this to at least make a little money off your huge loans.

I'll have to look into that, that is one sweet interest rate (even better than ING).

 

[Doctor Bagel]

I'm with AggieJohn and yoby here. I have great credit. My credit cards have a total limit of somewhere around 22,000 as I've paid them off almost every month since I opened my first one at age 18. It's great having 22K of credit, but I'm not sure what would actually happen to me if I maxed it out .

Joining you guys, too. IMO, you should do everything possible to avoid cc debt when in school. You might reach a situation where you have no choice, but that generally shouldn't happen your first year. My vote is to go for the card with the best incentives and not worry about the interest -- that way you make money off the card instead of the other way around.

 

[AZhopeful]

ah but that's not what we're discussing....
...

The majority of people who use credit cards use them to purchase goods or services that they don't have the liquidity to pay for outright. This is the concept and purpose of "credit." What you spend on your credit card is essentially a loan so you can spend money you don't have on something you wouldn't be able to afford if you couldn't pay it back in small increments+interest.

...

...
Say you have a stupid low apr like 5%, you could go buy a $10,000 home theater setup and pay it off over a year or whatever, paying a nominal interest fee. It's not like you could pay off your $10,000 balance at the end of the month. This is what credit cards are meant to be used for (and what credit card companies like their customers to use them for).
..

Isn't the bolded and italicized line a fancy way to say 'living outside your means?' I just went into a whole bunch of debt over this whole medical school thing, but aside from paying for tuition and books, my wife and I both know that if we ain't got the "liquidity", as you say, to pay for something, then it's not going to be in our apartment any time soon.

Also, in defining the credit card's interest rate as a low-interest, unsecured loan: Generally, a wise person takes out loans for things that he knows are going to help him be more productive and make him money in the future, i.e. startup capital for a business, continued education to achieve a higher-paying job(like a FEW people on this board), or ownership of a house that would make more sense over renting. All these things are gambles on endeavors that the wiser loanee believes will allow him to pay off the loan plus profit.

Things like a $10,000 home entertainment system are not generally going to help you generate income to pay off the loan +profit unless you're running some kind of illegitimate theater out of your living room. In fact, your entertainment system is going to lose value.

In summary, take out loans on things that increase your productivity, and don't use a credit card to make ad hoc loans on things that just sit and lose value. (i know that a car, for example, loses money; however, it can arguably increase your productivity).

 

[akpete]

It seems like a lot of people are concerned about credit card interest rates, but I don't understand why. Are any of you planning on making purchases and then letting it sit on the card? I've never been concerned with APR. My current card has the maximum (24.99%), but has great rewards, and as long as I always pay it off, its not an issue.

You should be concerned in the event that one day, you might not be able to pay off the balance. I started using credit cards when I was 18. Always paid off the balance in full every month. But in the later years of undergrad, bills were catching up (no financial aid) and I began having to use them to make ends meet. I was pretty thankful that I had shopped around for a low interest rate years before.

 

[akpete]

Get the AMSA credit card. Mine has a great APR (5.9%), and you'll get a free Netter's Atlas of Anatomy if you do. Win/win situation. I already had the AMSA card, so I couldn't get the Netter. 😛

How'd you manage to keep your 5.9%? I had 7.9%, but as soon as Bank of America took over MBNA, I got a letter in the mail saying that my card was being ammended to have a fixed 15.99% unless I wrote in rejecting the ammendment and never used my card again. Pissed, as the AMSA card was my best credit card. 😡

 

[RokChalkJayhawk]

You should be concerned in the event that one day, you might not be able to pay off the balance. I started using credit cards when I was 18. Always paid off the balance in full every month. But in the later years of undergrad, bills were catching up (no financial aid) and I began having to use them to make ends meet. I was pretty thankful that I had shopped around for a low interest rate years before.

To get through the last quarter of undergrad I had to put all my food and gas on a credit card. Paying it off in full with my med school aid check in a couple weeks then going to pay it back over 30 years.

 

[45408]

How'd you manage to keep your 5.9%? I had 7.9%, but as soon as Bank of America took over MBNA, I got a letter in the mail saying that my card was being ammended to have a fixed 15.99% unless I wrote in rejecting the ammendment and never used my card again. Pissed, as the AMSA card was my best credit card. 😡

Hmmm, I just went and looked. It said all my balance transfers would be at 5.9%, but I couldn't find what purchases would be, so I just requested a credit reference letter. I don't use that card any more because Citibank offers 2% cash back, and I don't carry a balance ever, so the interest rate is less important to me than the cash back. I leave the account open though so I don't look like I'm opening and closing accounts all over the place.

 

[Sol Rosenberg]

Think of it this way: if you pay off your credit card every month and never pay interest, the CC company makes no profit. CC companies make TONS of profit. Therefore, tons of people are paying interest on their credit card balances, the lower your interest rate, the less interest you pay.

Still confused, AggieJohn?

Just wanted to point out that you are wrong about this too.

The CC company makes 2-4% from the merchant on every purchase. So, the CC company is, in a way, making profit from the people who use their cards and pay them off each month (yes, it is technically the merchants who pay the $$$ to the CC companies, but if those same customers paid cash to the merchants, the CC companies wouldn't make any $$$ from those transactions, obviously.)

 

[etf]

Just wanted to point out that you are wrong about this too.

The CC company makes 2-4% from the merchant on every purchase. So, the CC company is, in a way, making profit from the people who use their cards and pay them off each month (yes, it is technically the merchants who pay the $$$ to the CC companies, but if those same customers paid cash to the merchants, the CC companies wouldn't make any $$$ from those transactions, obviously.)

this is true, particularly in the case of american express. the much ballyhooed centurion (black) card carries a $2500 annual fee, but that doesn't even begin to cover the costs of the perks it provides. rather, they make the money off interchange fees - since you need to spend a minimum of $250k a year to be eligible, and since amex gets around 3% of your charge volume from the merchant, that's at least $7500 right there. trust me, a lot of people with black cards are spending close to $250k a month.

 

[etf]

on a more germane note, i recently opened up an "investor checking" acct at charles schwab. 4.75% yield on FDIC insured checking, and unlimited atm rebates = good deal for me!

 

[jefguth]

This is a good idea. I am taking all the money my school gives me and putting it into an HSBC savings account at 5.05%

Look into this to at least make a little money off your huge loans.

GMAC bank: 5.25% APY currently, free cheques, up to 6 withdraws per mo. There is a min balance to avoid fees however.

 

[RokChalkJayhawk]

GMAC bank: 5.25% APY currently, free cheques, up to 6 withdraws per mo. There is a min balance to avoid fees however.

Yeah- best thing about HSBC is no minimum balance. I plan on depositing to the savings account then transfering to my HSBC checking account as necessary. I believe that there is no fee or limit on the number of transfers (within reason of course) between two HSBC accounts.

 

[IceMan0824]

GMAC bank: 5.25% APY currently, free cheques, up to 6 withdraws per mo. There is a min balance to avoid fees however.

The minimum balance to avoid maintenance fee is $50. Now, who doesn't have $50 to stash away, and the APY for GMAC is 5.30%. Not much of a difference from 5.25%, but I'm posting for accuracy.

The fine print though is that you need at least $500 to earn the high interest rate the MMA offers.

 

[IceMan0824]

You should be concerned in the event that one day, you might not be able to pay off the balance. I started using credit cards when I was 18. Always paid off the balance in full every month. But in the later years of undergrad, bills were catching up (no financial aid) and I began having to use them to make ends meet. I was pretty thankful that I had shopped around for a low interest rate years before.

I would have cut up the cards during these times and search for other means to get by.

A little mistake has thought you a lesson and you're probably more diligent with your credit card spending. Sounds like a win/win to me.

 

[IceMan0824]

The minimum balance to avoid maintenance fee is $50. Now, who doesn't have $50 to stash away, and the APY for GMAC is 5.30%. Not much of a difference from 5.25%, but I'm posting for accuracy.

The fine print though is that you need at least $500 to earn the high interest rate the MMA offers.

Oops, correction. Need a $500 minimum balance to avoid fees.

 

[etf]

well, all you folks are describing savings accounts, when i think that the op needed help opening a checking account.

 

[IceMan0824]

well, all you folks are describing savings accounts, when i think that the op needed help opening a checking account.

How quickly we get off topic

 

[RokChalkJayhawk]

well, all you folks are describing savings accounts, when i think that the op needed help opening a checking account.

Hah... true.

Well if you can, get a checking account through USAA. Have to be former military though or have a parent who is.

 

[brittanykgw]

Wachovia has a great free checking account. You get a debit card and first pack of checks free. Most of their banks are in every state.

 

[etf]

Wachovia has a great free checking account. You get a debit card and first pack of checks free. Most of their banks are in every state.

every bank pretty much gives you checks for free. and there isn't a single wachovia branch in the san francisco bay area.

 

[brittanykgw]

every bank pretty much gives you checks for free. and there isn't a single wachovia branch in the san francisco bay area.

I used to live in SF, and there was Wachovia. I guess it's not there anymore. SF is filled with BoA anyways. But I said most states, not every state.

 

[etf]

I used to live in SF, and there was Wachovia. I guess it's not there anymore. SF is filled with BoA anyways. But I said most states, not every state.

really? it must not be anymore, because my friend from new york was visiting last week and we went online for a wachovia for her to withdraw from, and were out of luck. it's weird - wachovia is a pretty big bank, so i'd think they'd have a presence out west, but then again, wells fargo has no exposure in the east.

p.s. i hate boa

 

[bhollowp]

ditto for disliking B of A, but I still use them as a brick and mortar and have an online checking account at ING for the interest rate. I just do direct deposit to ING for paychecks and any other deposits I use the BoA ATM and transfer it later.

 

[blanche]

ditto for disliking B of A, but I still use them as a brick and mortar and have an online checking account at ING for the interest rate. I just do direct deposit to ING for paychecks and any other deposits I use the BoA ATM and transfer it later.

my sticking point with BOA was that they don't allow you to transfer amongst acccounts (ING, other high-yield savings) without fees. also, their customer service blows and i think they're kindof evil. so i dumped BOA as my primary bank and am now much happier with wachovia.

 

[etf]

my sticking point with BOA was that they don't allow you to transfer amongst acccounts (ING, other high-yield savings) without fees. also, their customer service blows and i think they're kindof evil. so i dumped BOA as my primary bank and am now much happier with wachovia.

wait, bofa charges for ach transfers?

 

[blanche]

wait, bofa charges for ach transfers?

yes, if you initiate a transfer from a boa account that does not go to another boa account, they will charge you per ach transfer. i don't know details if you initiate the transaction FROM your other account (ie an ING savings) TO a boa account, but i thought it was ridiculous b/c i also transfer funds to roomates for bills, my other checking account, etc etc.