An ABC News investigation reveals that “free” checking accounts endorsed by some universities may have a catch. The average college student overdraws his/her account several times per year, and the bank and the university are just waiting for that to happen. Overdraft charges can be close to $40 every time students make a simple mistake, and the university is likely sharing in the revenue. This report reveals that TCF Bank pays the University of Minnesota $1 million per year, plus a bounty of $34 per student if the University will endorse students banking there. Here’s the report:
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Susan Beacham founded Money Savvy Generation in 1999 after almost two decades in private banking and investment management complemented by considerable time teaching at the elementary level.
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