Weíve all heard the horror stories of college students with thousands of dollars in credit card debt. With interest rates of 19%, efforts to pay off those cards are usually one step forward, two steps back.
In an effort to provide a solution to this problem, and create new customers for their banking services, Mercantile Bank has initiated a checking account designed specifically for college students: The "Student Finance 101 Account."
Mercantile is sharpóthey know that todayís starving students are tomorrowís entrepreneurs who will need mortgages, small business loans, and other financing. If they get in good with them now, they are hoping to reap the benefits later. Pretty smart.
"Recognizing that todayís college students often have limited incomes, we designed this account just for them," said John Elmore, head of consumer banking for Mercantile. "After all, college kids are our future small business customers and mortgage holdersóweíre investing in them today, and hope to grow with them tomorrow."
What does Finance 101 provide? For a buck a month, full time students can get a checking account with 200 free checks and a Mercantile Check Card. No minimum balance is required, online banking is free, and the $1 account fee is waived during the summer months. They also get five free check transactions per month and for an additional dollar, unlimited ATM and check card use.
Mercantile has chosen to capitalize on the built-in safety net a checking account provides. "For many students, a check card may be a smarter choice than a credit card," said Elmore. "A check card limits charges to the balance in a studentís checking account. Thus, with the Mercantile Check Card that is provided with Student Finance 101, they can make purchases from a retailer, but canít run up huge credit card debt. Yet, it gives students ready access to cash from any ATM."
Mercantile operates nearly 500 banking locations throughout Missouri, Illinois, Kansas, Iowa, Arkansas, and Kentucky. For more information visit http://www.mercantile.com.
