They say, "Cash is king," but shelling out an extra $3 to withdraw money from a rival bank's ATM may not be worth the cost. For the student with little money to spare, investigating banking options can save you simple fees and garner better interest returns.
National chains may be the more opportune choices with several automated teller machines located near Grounds and student-specific packages. However, the savvy student investor typically can find higher interest rates on savings accounts and get more personal attention with a Charlottesville-based institution.
As large banks such as Wachovia and Bank of America tend to offer more incentives for students to join, smaller area banks, such as Albemarle First Bank and Virginia National Bank, advertise their enhanced customer service abilities to attract new customers.
"Our focus is on service," said Becky VanDenHeuvel, Virginia National Bank customer service representative. "With all the large area banks, people do not have easy access to bankers. Here a customer can call their personal banker and get their information immediately."
Although Virginia National Bank may not have the same convenience that other banks have of being widely accessible, it does have lower hidden fees, unlimited check writing ability and no fee for withdrawing at other ATMs.
"While we don't have banners touting free checking, we may be a better deal with better service," VanDenHeuvel said.
In addition to more personalized service, area banks also tend to offer higher interest rate incentives to lure new business and compete with larger competitors.
As of July 15, both First Albemarle Bank and Virginia National Bank offered interest rates of 1.25 and 1.3 percent respectively. In comparison, Bank of America only gave .5 percent interest on accounts of up to $2,500 and then tiered rates according to total account capital. Both Wachovia and SunTrust offered rates at .75 percent.
Despite national banks' heavily advertised student deals, local banks offer many of the same services but with increased service, said Eugenia Goodale, vice president of Albemarle First Bank.
"We can compete with the large banks in most aspects," Goodale said. "You don't have to be a big national bank to offer good incentives, but you can get more personalized service with us than at another bank."
But the value of convenience and special packaging may be more fitting to students, who tend to need less personal interaction, SunTrust Senior Vice President Freda Carper said.
For example, Wachovia emphasizes its automated services with six on-Grounds ATMs and online banking. But if students need to make teller transactions, they are allowed only two free visits per month, after which the bank charges a $2 fee per visit.
Targeting University students, Wachovia offers a college checking account, which includes online banking and a free check card with no minimum balance or service fees.
"There are not a lot of fees associated with the account, and it's convenient for students as the bank branch is located on campus," Associate Manager LaToya Frie said.
With its accessible Corner location, some students are drawn to Bank of America, the only coast to coast bank in the country.
Bank of America also is the only area bank to offer check cards featuring photo security to restrict access. With its "My Access" account, Bank of America offers University students free checking with no minimum balance or monthly fees if backed by a direct deposit account, online banking and 24-hour, free account access.
"'My Access' is geared to college students and younger people just getting started," Banking Center Manager Kyle Garns said. "Our student checking account is being phased out because it became so dormant during the summer."
But competition among the larger banks has caused some area institutions to distinguish among services, hyping lower fees and an increased customer-oriented approach.
For example, before opening a SunTrust account, SunTrust Executive Freda Carper suggests that potential customers visit a branch office and consult with a banker to discuss the student's financial needs.
"From that we can determine the best checking account or best package account we can do for the student," she said. "We think that differentiates us from other banks."
So, despite national banks' highly advertised student deals, local financial institutions still can compete with their larger competitors. As national banks continue to hype self-proclaimed better student deals, local financial institutions continue to focus on the customer, waiving teller fees and promoting personalized service while offering many comparative packages found at Wachovia, SunTrust and Bank of America.
"With a smaller bank, we're much more likely to get to know the customer, which students may like," Goodale said. "And small, locally-owned banks tend to be easier to deal with"
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