Knowing the 10 best savings account for college students will be very important if you are at a crossroad in choosing a bank account as a college undergraduate. At this stage, the features of the accounts we use are very important and we can’t afford to go for choices that take much from us.
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10 Best Savings Accounts for College Students
This article will cover ten of the important savings for college students, what to look for in a savings account and 10 of the best savings account for college students.
Why save in college?
The character of savings is for everyone. For some people, savings could be the last thing that will get into their minds as they get into college. Meanwhile, it is one of the most important things every college student should do. Here are some of the reasons why you should save.
Pay off student loans faster
The average loan debt ratio in the United States is $30,000 according to U.S News. You will not be able to save that much when you are in school, but it’s worth it. The average student saves at least $1000.
If you save some money throughout your college days, you will be able to designate some income to pay off your debts.
Create good financial habits
One of the major reasons why you should save is to build the best habit, which is the habit to save. Most of us do not leave our homes with such habits, unfortunately.
Research shows that it will take people at least 66 days to create a habit. This technically means that if you save every week throughout your college days, you will create the habit of saving before you graduate.
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Make money work for you
Savings is the best way to make your money work for you. There are several ways to do this. Put the money in an account with a high annual percentage yield, save to invest, or save to buy assets. This way, you will make more money with the money you save.
How Do You Choose the Right Savings Account for You
First of all, we have made the search easier for you by revealing the best ten savings accounts for college graduates in this article. But the factors to consider when choosing amongst these are;
Security
The first thing to consider is how safe your money is. You want to be sure that your money will not be touched by hackers or people who don’t belong in your account
Annual Percentage Rate
Everybody wants a higher interest rate. This represents how much your money will be made for you while you sit.
Minimum Deposit
The fact is that most college students may not have lots of money to throw into a savings account. For this reason, it is best to choose an account with a very low minimum deposit threshold feature.
The top 10 best College Student Savings Account
According to the factors listed above, the accounts below are some of the best savings accounts for college students in the United States;
Bank Of America Student Account
This account is a very good choice for those who are concerned about the safety of their money. First of all, there are lots of ATMs that you can choose from.
It allows a minimum deposit of $100 and an annual percentage yield of o.01% to 0.05%. this means you will need a significant deposit and get a very low APY.
It is a great option for those who are concerned about security and convenience.
Capital One Financial Corp
This is one of the leading savings accounts in online banking the bank has great infrastructure and claims to be paper free.
This account is advisable for people who want to save from a very young age. Here, you can save from the age of 8 without making a considerable deposit and keep the account until you turn 18.
The account has a very low APY of 0.1%. it is very great if you do not have a reasonable deposit to start up an account.
HSBC
It is a fact that the biggest banks do not always care about small clients. therefore, their APYs are not always that impressive. With that said, the APY rate of this account is more reasonable at 0.15%.
With the HSBC account, you just need $1 to start up a savings account. It is very easy to work with them because their platform is user-friendly and easy to get into.
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American Express
This bank has a whooping APY of 0.4%. its rate is more than double the first few banks we have talked about. With this bank, there is also no minimum deposit to open an account.
The downside of this account is that it is a one-trick savings account. You cannot do anything else with the savings account you have opened at American Express. No cashing checks.
Radius Bank
Radius bank offers you savings account for both checking and saving, the Radius Rewards checking account has a lot of fabulous features.
Although they do not offer an option specifically for college graduates, their account covers all the bases. It is a perfect account for both checking and saving.
The APY of the Radius Rewards Checking account is 0.15%, and you will need the sum of $100 to open an account.
Marcus by Goldman Sachs
This account has a higher APY compared to the ones we have listed above. If profitability Is your major factor, then you should settle with this.
Also, another important advantage is that you do not need much to open an account here. All you need is $1.
The only downside is that the account is strictly online. If you like to visit the bank, this might not be the best choice for you.
Discover Student Savings Account
Discover bank is a very great bank account for college students. There is no minimum deposit required to open an account here. The APY of this account is on the higher side, 0.4%. you will also get some online banking benefits with this account.
The only downside of this account is that you can only bank online.
CIT Bank
This is a very good option for people who are struggling to save. The APY of this savings account is 0.4% but the account requires a minimum deposit of $100 every month to maintain the APY.
This savings is a very good option for those who want to invest their money and get returns. If you want your savings account to grow, you will have to keep building the habit of savings to get the best profits.
Ally
With Apply, you get a whooping Annual percentage rate of 0.5%, and you do not require a minimum deposit to register.
Ally is mainly online. The banking platform has customer service that is available 24/7, you can always run to them if you have any problems.
Chime
Chime offers an APY of 0.5% and does not require you to make any large investment to start up an account here.
Chime is also strictly online but the downside is that it does not have 24/7 customer service.
With Chime, you can either decide to store up all your spare change from your debit card on your account or add a percentage of your income to your account.
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Student Savings Account Interest Rates
The table below contains some of the best savings accounts for students in 2022, their monthly fees, and their average percentage yield.
Account | Best for | Monthly fee | APY |
American Express® High Yield Savings Account |
| $0 | 1.75% |
Barclays Online Savings |
| $0 | 2.00% |
Synchrony High Yield Savings |
| $0 | 1.8% |
Marcus by Goldman Sachs Online Savings |
| $0 | 1.7% |
My Savings Account |
| $0 | 1% |
Ally Bank Online Savings Account |
| $0 | 1.25% |
PNC Virtual Wallet Student |
| $0 | 0.01% |
Chase Savings |
| $5 | 0.01% |
Capital One Kids Savings Account |
| $0 | 0.3% |
DCU Primary Savings Account |
| $0 | 6.17% on the first $1,000 and 0.25% after that |
Golden 1 Youth Savings Account |
| $0 | 0.05% on balances $100+ |
BECU Early Saver Youth Account |
| $0 | 4.07% on your first $500 and 0.25% after that |
Frequently Asked Questions
What is Chase Student Savings Account
This account offers all the features a student needs for banking, it is for students between the ages of 17 and 24. This account has no monthly service fees until after graduation. Chase offers a signup bonus of $100. It does not require any minimum deposit.
What Makes a College Student’s Savings Account Different?
College student savings accounts are designed specifically for college students. This means that most of them usually have no minimum balance requirements, no fees, and are usually online.
Should College Students Have a Savings Account?
A savings account is a must for college students that already live on a tight budget. It is important to maintain an emergency fund that will help you through those unexpected situations in life like car repairs or medical bills. As a college student, you should never rely on high-interest credit cards or payday loans to get you out of financial situations and troubles.
How Much Should a College Student Have in The Bank?
According to Steinberg, college students must keep around one to two months’ worth of their income in checking and put every other thing in a high-yield savings account or retirement funds.
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