Opening a savings account has several benefits for students. These accounts are a great way to keep the funds for education safe, and they can also prove beneficial in helping students understand how to manage their expenses and save at the same time. The funds in these accounts may not accrue a lot of interest, some of the benefits of savings accounts for students surely override this drawback. Here are some of the benefits:
Opening a savings account is easy
The process of opening a savings account is very easy for students. You have to simply go to the bank or credit union where you have a checking account. Indeed opening a savings account online is also easy. If you’re an international student, you require a passport, student visa, second ID proof, university enrolment proof and, of course, money to open a savings account.
A liquid asset
Since this is a savings account for the student, you don’t need to make any major selling investments and financial compromises or deals to save your hard-earned cash. Ideally, the accessibility to liquid cash is not a matter of concern.
One of the major benefits of savings accounts for students is that they offer the ease of carrying out financial transactions as and when required. You can simply walk up to the bank to withdraw money or use the ATM to do so. Almost all banks also give accessibility to mobile apps, and as a student, you will also have easy accessibility to ATMs near your college campus. Plus, some small local and regional banks will have a presence near your campus.
Perks and additional benefits
Most banks that offer savings accounts for students try their best to retain their customers by offering benefits like free checks, minimum balance requirements, free debit card, online banking services, and free access to ATM transactions. Indeed, while you’re planning to open a savings account, look for these additional benefits to make the most of the offer.
Some of the banks in the country that offer savings accounts for students give cash bonuses, but they’re sometimes conditioned to a required amount every month and direct deposits. Also, zero-maintenance savings accounts for students are better than perks and additional cookies in the long run.
Funds are safe
Another benefit of having savings accounts for students is that your funds are well protected, and your money is a lot safer if you keep the money in a credit union with NCUA insurance. The money is safe until you decide to withdraw it.
You can collect funds from any sources, and ideally, there are no limitations on deposited cheques, issuing cheques, and payments.
Financial independence and understanding
For the student though, your kids will get a fair understanding of how to manage their finances and the basics of operating a bank account and other facets of transactions. It’s also beneficial as it helps students understand how to balance savings and expenditures.