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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Written by Susan Beacham
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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