According to some figures, about 26% of adults in the country have no savings for an emergency. For students who live on a tight budget having a savings account is vital. Some of the best and biggest benefits of savings accounts for students have been discussed herein.
Easy to Open
Student savings accounts are easy to open some of the documents that you would need to submit along with your application form are an identity proof such as a student ID card, birth certificate, driver’s license or any other valid ID proof, an address proof, and the required amount of money to open the account. It might be useful to confirm with the bank you wish to open your account with about the documents that need to be submitted.
Easy to Operate
With user-friendly websites and apps, one of the benefits of savings accounts for students is that they are easy to operate. There are quite a few online-only banks such as Ally, Simple, and Chime offer excellent student accounts. Monetary transactions can be easily handled through the mobile banking services offered.
Learning to Save
Helping you to save and set up a budget are the benefits of savings accounts for students. This will be useful not just during your student life but for the rest of your life too. Opening a student savings account is a good idea if you want to save money over a period of time. It can help you save for emergencies, travel, or put away the little extra cash that you might have from the part-time job you are engaged in. We suggest setting up a schedule to transfer cash from your checking account into your savings account on a certain date. This can help you achieve savings goals such as money required for a trip.
Easy Access to Cash When Needed
You can easily withdraw money when needed through an ATM or bank teller. However, do ensure that the bank you wish to open an account with has an ATM on your campus as some banks might charge you to use the ATM of other banks. Also, you should keep in mind that there is a limit on the number of withdrawals you can make from a savings account. According to federal law, the number of withdrawals you can make from a savings account is six per month.
If you stay in a dorm or other shared accommodation, the little bit of excess cash that you have can be put into a savings account. This will prevent it from going missing. Also, the money put in a savings account will help you earn interest rather than just lying around.
After going through the benefits of savings accounts for students listed above you should read up on the terms of the various banks offering these types of accounts and choose the financial institution that best suits your needs.