What is the need for a student’s savings account?

Having a savings’ account for students is a great way to get a student on the right road towards financial management. Students saving accounts are available with plenty of viable options.  The major benefit of students saving account is that allows you to earn more without paying anything and without maintaining a minimum balance in the savings account.

Procedures for opening up a student saving account are just like opening up a typical savings account. Student saving account will generally be guarded by parents or guardians. Operation modes of these banks are generally similar to minor bank accounts or children savings account. The minor account will cease to continue when the account holder attains the age of eighteen and similarly benefits extended to students will be ceased to continue if you the person is longer a student and the same will be intimated by the banks to the parents or guardians.

Financial penalties and other charges due to non maintenance of minimum balance and other requisites are not imposed on savings account held by students. Students saving accounts are offered by different banks and when it is decided to go with having a saving account; it will be worth comparing the deals offered by several banks.

Few things to be considered while comparing the student savings account includes the following:

Rate of Interest: Interest rate is the common thing considered by most of the people and the highest rate will get you the most out of your money. Savings accounts for students are generally tax free accounts and they also offer interest at higher than typical savings accounts.  Similarly when the account is deposited with any fixed amount at frequent intervals like, every month or every quarter, the banks will offer higher rate of interest.

Other Offers: Students bank accounts extend different types of offers to the customers and includes cash back offers, free gifts, incentives, over draft facilities, etc.,  It is more important to shop around the locality to find the best deals offered by the banks as they are competitive with each other in what they offer. Over draft facilities are also provided as interest free facility or a low rate of interest. Interest free over draft facility is extended up to certain limit of withdrawal and if the same is exceeded, the account will be charged with nominal rate of interest.

Online banking facility to have instant check on account, ATM card and debit cards are also provided with savings bank account for student.