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The PayPal Student Account and PayPal Student Debit MasterCard are no longer offered. You can compare other student bank accounts here.
The PayPal Student Account offers a way to fund your teenager’s expenses with ease. It is an easy to manage system that can instantly wire money to a teenager’s account. That is the system in a nutshell: parental PayPal account connected to student PayPal account that has a debit card attached to it. This is an easy to understand setup, but there is more to it than that. The PayPal Student Account has multiple online features that must be laid out before deciding to run with this product.
First, let us talk about the requirements for setting up a PayPal account for your teenager. The parent does not technically need a PayPal account to set up the student account, but it is much easier overall to have a PayPal account in the first place. The teenaged candidate must be at least thirteen years of age. The parent is the one who must set the student account up; the teenager cannot set it up themselves. PayPal requires the teenager’s email, name, and date of birth. These are the basic requirements for the account.
Second, let us talk about the pros and benefits of a PayPal Student Account. It was mentioned earlier that the student has a PayPal debit card. This student card can be used for regular purchases with no transaction fee. The student can also send money with no fee. The student account is extremely simple to manage. Any parental bank debit, credit, or PayPal account can be linked to the student account. This allows money to be transferred to that student debit card anywhere in the world.
Automatic deposits can be set up, so teenagers can receive funds on a schedule each month. The student account allows parents a degree of control over their teenager’s expenses. The parent can set restrictions on transactions, so certain items or products cannot be paid for at the parent’s discretion. Overall, PayPal offers a decent amount of control and an easy way to manage the Student PayPal Account.
Last but not least, there are several negatives that come with the PayPal Student Account, namely the fees. While there are no fees for sending money of buying with the student account, there are several other fees that apply for a number of situations. If a student happens to sell an item through their PayPal account, a fee of 2.9% plus $0.30 is applicable for a transaction within the United States. The same transaction from outside the United States warrants a fee of 3.9% plus $0.30. If a student receives money from a non-PayPal account, then a fee of 2.9% plus $0.30 is applied (3.9% plus $0.30 for foreign transactions).
Possibly one of the most troublesome fees, ATM withdrawals with the Student PayPal debit card are charged $1.50 (excluding the standard ATM fee). This fee is doubled if a signature is required upon withdrawal inside a bank. When abroad, a foreign currency exchange rate is accompanied by a 2.5% fee. All foreign purchases are charged 1% while foreign ATM withdrawals are charged 1%.
From a parental perspective, the PayPal Student Account does not offer great benefits when compared to its negatives. In short, it is not worth it. Unless you already have a PayPal account, there is zero incentive to setup a Student Account for your teenager. Parents, family, and friends without PayPal accounts are going to simply create fees when sending your teenager money. Most of the capabilities of the PayPal Student Account are matched by other banks. On top of that, these banks have less and lower fees. The claim by PayPal of easy money transfers is simply matched by most banks who have the exact same capability.
Any responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Author: Jeff Gitlen