Everyone must have a savings account as it helps you save money. It ensures an interest on the money, which is particularly helpful for students.

The benefits of a savings account for students:

Safe way to save money
One of the benefits of savings accounts for students is that it is a secure place to save money. Students need money for many expenses, mostly for their education and everyday expenditure. Their allowance money or money by scholarships can be safely stored in a savings account. Moreover, any money received in gifts from relatives can be deposited in the account as well.

Earn interest
The biggest benefit of having a savings account is that you can earn interest on it. The more money in the account, the more interest earned. This interest can be handy for students who have many expenses. A savings bank account makes people realize the importance of saving money to earn interest. When they understand that they can earn interest on their earnings, it helps them get used to the practice of saving for the future.

Encourages thrift
Students can learn the importance of thrift when they have a savings account. It encourages them to start saving money and deposit it in the account so it earns interest. When they get used to this, they will continue to follow this habit when they start working and earn an income.

It allows them to make transactions
Transactions on the savings account can be carried out easily. Students would need money to pay their fees and other expenses. They can withdraw cash from the bank or any ATM. Almost all banks would issue an ATM card.

Students may be issued a debit/ATM card that will allow them to spend money on purchases. They can even carry out online transactions and make payments for purchases. They can use internet banking to transfer money to other accounts as well.

Since it is a savings account, there are restrictions on the number of transactions allowed. Usually, it is six per month, which should be sufficient for students. In case they carry out additional transactions they may be charged for it.

Zero balance
Savings accounts generally stipulate a minimum balance to be maintained. This is a sum of money that has to be left in the bank account. If you fail to maintain this balance, it could lead to a penalty. Students, however, don’t need to worry about that. These accounts are usually zero-balance accounts; there is no requirement of a minimum balance to be maintained.