Best Savings Accounts for Students: A savings account is a type of bank account that allows you to deposit money and earn interest on it. Interest is the amount of money that the bank pays you for letting them use your money. The interest rate is the percentage of your balance that the bank pays you in interest each year.
It is important for students to have a savings account for a number of reasons. First, it can help you save for your future. You can use your savings to pay for college, rent, or other expenses after you graduate. Second, a savings account can help you build your credit history.
This is important because it can help you get approved for loans and other forms of credit in the future. Third, a savings account can help you protect your money from unexpected expenses. If you have an emergency fund in your savings account, you will be less likely to have to use a credit card or take out a loan when something unexpected happens.
Factors to Consider When Choosing a Savings Account for Students
There are a few factors to consider when choosing a savings account for students. These include:
- Interest rate: The interest rate is the most important factor to consider when choosing a savings account. You want to choose an account with the highest interest rate so that you can earn the most money on your savings.
- Minimum balance requirements: Some savings accounts have minimum balance requirements. This means that you must keep a certain amount of money in the account in order to avoid fees.
- Monthly fees: Some savings accounts have monthly fees. These fees can add up over time, so it is important to choose an account with no monthly fees.
- ATM fees: Some savings accounts charge ATM fees when you withdraw money from an ATM that is not affiliated with the bank. These fees can be expensive, so it is important to choose an account with low or no ATM fees.
- Online banking features: Most savings accounts offer online banking features, such as the ability to view your balance, transfer money, and set up automatic transfers. It is important to choose an account with online banking features that you are comfortable using.
- Customer service: If you ever have a problem with your savings account, you will need to be able to get in touch with customer service. It is important to choose an account with customer service that is responsive and helpful.
Best Savings Accounts for Students
Here are some of the best savings accounts for students:
1. CIT Bank Savings Connect
CIT Bank Savings Connect is a high-yield savings account that offers an interest rate of up to 0.90% APY. It has no minimum balance requirement and no monthly fees. You can make unlimited deposits and withdrawals online or through the CIT Bank mobile app.
Pros:
- High interest rate
- No minimum balance requirement
- No monthly fees
- Unlimited deposits and withdrawals
- Easy to open and manage online
Cons:
- No ATM network
- Customer service can be slow
2. HSBC Premier High Interest Account
The HSBC Premier High Interest Account is a high-yield savings account that offers an interest rate of up to 0.85% APY. It requires a minimum balance of $25,000 to earn the highest interest rate. There are no monthly fees, but there is a $3 monthly fee for ATM withdrawals not made at HSBC ATMs.
Pros:
- High interest rate
- No monthly fees for online banking
- Free ATM withdrawals at HSBC ATMs worldwide
- Access to HSBC\’s global banking network
Cons:
- High minimum balance requirement
- ATM fees for withdrawals not made at HSBC ATMs
- Customer service can be slow
3. Synchrony High Yield Savings
The Synchrony High Yield Savings is a high-yield savings account that offers an interest rate of up to 0.70% APY. It has no minimum balance requirement and no monthly fees. You can make unlimited deposits and withdrawals online or through the Synchrony Bank mobile app.
Pros:
- High interest rate
- No minimum balance requirement
- No monthly fees
- Unlimited deposits and withdrawals
- Easy to open and manage online
Cons:
- No ATM network
- Customer service can be slow
4. TIAA Bank Yield Pledge® Online Savings
The TIAA Bank Yield Pledge® Online Savings is a high-yield savings account that offers an interest rate of up to 0.80% APY. It has no minimum balance requirement and no monthly fees. You can make unlimited deposits and withdrawals online or through the TIAA Bank mobile app.
Pros:
- High interest rate
- No minimum balance requirement
- No monthly fees
- Unlimited deposits and withdrawals
- Easy to open and manage online
- FDIC insured
Cons:
- No ATM network
- Customer service can be slow
5. Marcus by Goldman Sachs Online Savings
Marcus by Goldman Sachs Online Savings is a high-yield savings account that offers an interest rate of up to 0.85% APY. It has no minimum balance requirement and no monthly fees. You can make unlimited deposits and withdrawals online or through the Marcus by Goldman Sachs mobile app.
Pros:
- High interest rate
- No minimum balance requirement
- No monthly fees
- Unlimited deposits and withdrawals
- Easy to open and manage online
- FDIC insured
Cons:
- No ATM network
- Customer service can be slow
Which Is The Best Savings Account For Students?
The best savings account for students will depend on their individual needs and preferences. Some factors to consider include the interest rate, minimum balance requirement, monthly fees, ATM fees, online banking features, and customer service.
If you are looking for the highest interest rate, then CIT Bank Savings Connect or Synchrony High Yield Savings are good options. However, they both have no ATM network, so you will need to pay ATM fees if you withdraw cash often.
If you are looking for a savings account with no minimum balance requirement and no monthly fees, then TIAA Bank Yield Pledge® Online Savings or Marcus by Goldman Sachs Online Savings are good options. However, their interest rates are not as high as some of the other options.
Ultimately, the best way to choose the best savings account for students is to compare your options and choose the one that best meets your needs.
How To Open A Savings Account
Opening a savings account is a great way to start saving money for your future goals. Here are the steps involved:
- Choose a bank. There are many different banks that offer savings accounts for students. Do some research to find one that has the features you\’re looking for, such as a high interest rate, no monthly fees, and ATM access.
- Gather the necessary documents. You\’ll need to provide some basic identification information, such as your Social Security number, driver\’s license, and proof of address. You may also need to provide a student ID card.
- Fill out an application. The application will ask for your personal information, such as your name, address, and date of birth. It will also ask about your income and expenses.
- Make a deposit. You\’ll need to make a minimum deposit to open the account. The minimum deposit amount varies from bank to bank.
- Sign the account agreement. Once you\’ve met all the requirements, you\’ll need to sign the account agreement. This document will outline the terms and conditions of the account, such as the interest rate, fees, and withdrawal limits.
Tips for Saving Money as a Student
Here are some tips for saving money as a student:
- Set a goal. What do you want to save for? A car? A down payment on a house? A study abroad trip? Having a specific goal in mind will help you stay motivated to save.
- Make a budget. Track your income and expenses so you can see where your money is going. This will help you identify areas where you can cut back.
- Automate your savings. Set up an automatic transfer from your checking account to your savings account on a regular basis, such as every payday. This way, you\’ll never even see the money and you won\’t be tempted to spend it.
- Avoid impulse spending. When you\’re out shopping, take your time and think about whether you really need the item before you buy it. If you can wait a day or two, you may change your mind.
- Get a part-time job. If you can, get a part-time job to earn extra money. This will help you reach your savings goals faster.
Conclusion
Saving money is an important financial habit to start early, and students are no exception. A savings account can help you reach your financial goals, such as paying for college, buying a car, or starting a business.
When choosing a savings account for students, there are a few factors to consider, such as the interest rate, minimum balance requirements, and fees. You should also look for an account that offers online banking features and good customer service.
I hope this article has helped you learn more about the best savings accounts for students. By comparing interest rates, fees, and features, you can find the best savings account to help you reach your financial goals.
FAQs about Best Savings Account for Students
1. What is the best savings account for students with no credit?
There are a few savings accounts that are designed for students with no credit, such as the Discover Student Checking Account and the Ally Bank Student Checking Account. These accounts typically have no minimum balance requirements and no monthly fees.
2. What is the best savings account for students with a low balance?
There are also a few savings accounts that are designed for students with a low balance, such as the CIT Bank Savings Connect and the Marcus by Goldman Sachs Online Savings. These accounts typically have low minimum balance requirements and no monthly fees.
3. What is the best savings account for students who travel frequently?
If you travel frequently, you\’ll want to choose a savings account that doesn\’t charge ATM fees. Some good options include the Schwab Bank High Yield Investor Checking Account and the Fidelity Cash Management Account.
4. What is the best savings account for students who want to earn the highest interest rate?
The highest interest rates are typically offered by online banks. Some good options include the CIT Bank Savings Connect, the Marcus by Goldman Sachs Online Savings, and the Ally Bank Online Savings.
Start saving today! Even if you can only save a small amount each month, it will add up over time. And the sooner you start saving, the more time your money has to grow. So don\’t wait, start saving today!