When Bank of America announced last week that it plans to start charging some customers a $5 monthly fee for using their debit cards, University students reacted with dismay. This is understandable since Bank of America is among the most prominent financial institutions in the Charlottesville area, with full-service branches in Newcomb Hall, Barracks Road Shopping Center and on the Corner, as well as eight standalone ATMs in and around University-owned properties. Although Bank of America has not specified whether or not the new debit card fees will apply to student account holders, the mere possibility that they will be charged for such a routine service should cause students to consider the other options that the University offers for the purpose of facilitating financial transactions.
For those seeking the convenience of banking locally, the University of Virginia Community Credit Union offers a viable alternative to Bank of America and other major financial institutions. The credit union has a branch office on Arlington Boulevard within walking distance of Barracks Road Shopping Center, and also features ATMs at the University Hospital cafeteria and on the fourth floor of Alderman Library. It does not charge monthly fees for debit card usage, and students do not have to pay a monthly membership fee to maintain their accounts following graduation.
In fact, the credit union charges lower fees almost across the board. Its overdraft fees are $25 compared to $35 at Bank of America, and its 95 cent per transaction fee for using out-of-network ATMs is substantially lower than Bank of America's rate of $2 per transaction. And not only does the credit union offer students the opportunity to save money while banking, but also to earn a little in the process: As of Oct. 4, its annual percentage yield on savings accounts was .4 percent whereas Bank of America's was .05 percent.
In addition to using banks that minimize service charges, students can make use of several low-fee payment methods when engaging in financial transactions with the University. For example, Cavalier Advantage allows students to load money onto their University-issued identification cards and use them at dormitory laundry rooms, the University Bookstore, dining venues and other on-Grounds locations. Although there is a $2 fee for all deposits made to a Cavalier Advantage account, students can receive discounts when they use the funds at certain places such as the Central Grounds Parking Garage, TJ's Locker merchandise store and the copy machines located in University libraries. Students also may find it safer to use Cavalier Advantage rather than cash, credit or debit for predictable cost-of-living expenses since the account's funds only can be used at specific on-Grounds locations. Also, students can unilaterally deactivate their University ID cards any time of the day if they are lost or stolen.
For larger purchases, students can use a form of University-provided credit known as Student Accounts. Parking fines and library late fees are charged to Student Accounts automatically, but students also can pay back loans and purchase items from the University Bookstore up to a $999 limit using this method. Because charges incurred through Student Accounts must be paid monthly, it helps students and their families keep track of University-related spending and avoid paying interest on those transactions.
Some students still may be drawn to the nationwide availability of major banks such as Bank of America, but they should be aware of the numerous other options that exist at the University for the purpose of minimizing expenses related to financial services. Although the payoff may not make an immediate difference on their balance sheets, saving and spending in secure and cost-effective ways will accrue major benefits in the long term and will set up students for smart financial decision-making later on in life.
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