Published in July 28, 2021

Should I get a student bank account?

Should I get a student bank account?
Home > Finance > Should I get a student bank account?

Student bank accounts are essentially the same as any regular account. However, they usually offer special benefits and low rates for those who are studying and young adults.

Why is a student bank account important?

Regardless of your age and income, it’s best to always have a bank account to store your funds. Student-focused bank accounts are functionally the same as regular bank accounts. However, student bank accounts have special features that help young adults increase their savings. It’s a simple process of depositing your funds and earning interest. 

To find the best banks for when you’re studying, look for one with a low minimum deposit. Additionally, you should look out for common fees such as account maintenance fees. 

Student bank accounts are the best lesson on managing your money. However, if you’re under 18, your best option is opening a joint account with your parents or guardians.

When choosing a bank to join, look for branches near you to make ATM transactions simple. Furthermore, when opening a savings account, look out for the interest rate to ensure you’re getting the best possible offer. 

Student checking account

Student checking accounts allow second parties to deposit and withdraw money from your account. However, note that checking accounts don’t receive much interest and require a low deposit fee as well as little to no fees.

Unlike savings accounts, you can make unlimited transactions. Finally, like regular accounts, you’ll be given a debit card.

How to open a student checking account

If you’re under the age of 18, you will most likely be required to have a parent or guardian present when opening a bank account. That makes your parent or guardian a co-signer on the joint account.  

Initially, you’d need to make a low deposit, but because it’s a student account, the deposit amount would be low. You will then be given a debit card to access your funds and make withdrawals. You may also set up a direct deposit if you’re an employee with recurring income. When opening an account, you will be asked to provide photo identification, proof of residential address, and possibly your student card.

Want to learn more about banking? Read more about the different types of bank accounts!

Students savings account

Although savings accounts earn interest, they usually have transaction limits. Savings are important for budgetary purposes, especially for paying bills when you’re studying. 

Need to plan your budget? Check out Moneysmart’s budget planner to help you determine how much you can afford to pay!

 

While we at Tippla will always do our best to provide you with the information you need to financially thrive, it’s important to note that we’re not debt counsellors, nor do we provide financial advice. Be sure to speak to your financial services professional before making any decisions.

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