Students can open a savings account in a bank when they commence their studies at college/university. This article takes a look at the benefits and features of a savings accounts for students.

Before looking at the benefits of savings accounts for students, let’s take a look at what a student savings account is. This is an account that banks offer exclusively for students of colleges and universities. You need to show the student ID card at the time of opening the account.

The objective of the account is to deposit funds easily and from there transfer to the college/university for fee payment. Students can also earn interest on the account that they can use for their expenses. Unlike a checking account, this account is not meant for frequent transactions and used to earn interest and pay fees.

Features
Some of the features of students savings account include:

• There are no requirements at all regarding maintaining a minimum balance in the account. No penalty is charged for non-maintenance of balance.
• There is no requirement of depositing any money while opening the account.
• Transactions on student accounts are free or very nominal fees are levied. Usually, higher charges are levied if more transactions are carried out within a certain period.
• There is a limit to the amount deposited in the account. This is to prevent parents from using their children’s account to earn interest.
• It is possible to make deposits, transfer money, and withdraw money using an ATM card.
• Interest is provided on account balance, as per the notified interest rate.

Benefits
The following are the benefits of opening a student saving account:

• A student can have an account for his/her use while studying. This helps them be independent and not depend on their parent’s account.
• Students can earn interest on the money they save. This encourages the habit of savings. The interest earned can be handy for student expenses.
• A savings account for students can be easily accessed by students at any time for withdrawing money. There are no restrictions on who can access the account.
• The money in a student’s savings account is safe and is covered under Federal Insurance. It is a safe way to keep money for student’s use during studies as keeping cash can be risky.
• There is no minimum balance to be maintained for the account. There are no maintenance charges levied on the account.
• Checkbook and debit card are issued to help students transact using their account.
• It is possible to open an online student’s savings account that usually offers a higher rate of interest and more benefits.
• It is a risk-free savings option that inculcates the habit of savings for students.

Keeping the features and benefits in mind, it can be said that opening a student savings account is worthwhile.