For a student, a savings account can be an incredible parking place to stack the surplus funds, which they can later use for various purposes. In many cases, it is the first-ever introduction of the students with the financial system and banking. The benefits of savings accounts for students are plenty. Let’s take a look.
Safe Place to Store Your Funds
One of the most effective benefits of opening a student savings account is that it is one of the safest places to keep your extra money. Whatever money that you keep in your student savings account will stay in there for withdrawing it or paying for any bills or payments. This is probably why a student savings account usually fetches a low-interest rate. However, the benefit about this student savings accounts is that they are is a liquid, which means whenever a student is in urgent need of money, he/she can withdraw it from this account. However, there’s a certain withdrawal limit that you need to adhere to. Usually, students take up a loan to pay for their college. So, if they simultaneously engage in a job, they can open a student savings account and save their earnings in it, which is an added benefit. To these earnings, a fixed rate of interest will be added, and this would increase the amount of savings, thereby giving you additional money to pay off the student loan.
Offers Value-added Perks
One of the benefits of savings accounts for studentsis that a couple of banks offer a bunch of value-added benefits and services to the students who open their savings account with them. Some banks even provide you with cash back, offers, and discounts, on making payments via your debit card linked with the savings account. In addition to this, some banks will also offer you a medical or accident insurance benefit, travel insurance benefit, or other insurance covers when you open a savings account with them. Hence, on opening a savings account with these banks, you get access to additional benefits.
Excellent Fund for Collections and Payments
Sometimes, you live away from home and are in an urgent need of money. So, if you have a savings account, your parents can deposit money in it, and you can receive it in any part of the world. Moreover, you can get money from your part-time job or a freelance gig in your savings account. Similarly, you can use your account to pay for your bills, groceries, and other utilities with ease.
Ideal for Income Generation
The savings account earns a steady rate of interest. This helps improve your basic income over time. The more savings you have in your account, the higher would be your monthly or yearly interest. So, it is an ideal account to generate some surplus income.