Guide to Student Savings Accounts
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What Are Savings Savings Accounts for Students?
How Does a Student Savings Account Work?
Types of Student Savings Accounts
Regular Savings Account
Online Savings Account
Benefits of a Student Savings Account
Drawbacks of Student Savings Accounts
Factors to Consider When Choosing Your Student Savings Account
APY This tells you how much you’ll earn on your savings in one year and includes compound interest (when the interest you earn also earns interest). High-yield savings accounts at online banks tend to offer the highest APYs. Initial deposit Student accounts generally allow you to start off with a low (or even no) initial deposit, but you’ll want to check and make sure that you have enough cash to meet any opening minimum. Minimum balance requirements A balance requirement is the lowest amount of money you must have in the account to avoid fees, typically assessed daily. If you drop below that amount, you may trigger fees. As a student, you’ll want to choose an account that won’t punish you for dropping below a certain minimum. Account fees It’s a good idea to find out if there are monthly service fees, accounts maintenance fees, and/or ATM fees, or if these will be waived since you are a student. Convenience You’ll want to choose a savings account that comes with a user-friendly mobile app, as well as access to fee-free ATMs that are convenient to both home and school.
Student Savings Account vs. Student Checking Account
Opening a Student Account
Identification This could be a valid driver’s license, birth certificate, passport, or Social Security Card, or government issued photo ID Proof of address It must show your name and address of your residence. This could be a current and valid lease, utility bill, or a bank or credit card statement. Opening deposit If your bank requires a minimum opening deposit, you’ll need to make it with cash, a debit card, or via electronic payment. Application You will also likely need to complete an application for approval.
What to Look for With Interest Rates on Student Savings Accounts
Frequently Asked Questions
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