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What Is The Best Savings Account For College Students

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Best For High School Students: Capital One Money Account


Capital One

The Capital One MONEY Teen Checking account is an excellent option for students under the age of 18 . There are no monthly fees or minimum balances, and teens also receive a fee-free debit card in their name. With more than 70,000 fee-free Capital One and partner ATMs, teen account-holders can access their cash all over. Best of all, the account offers 0.10% APY on all balances, so high school students can learn the benefits of saving.

Parents are joint owners on the account and can view transaction information and receive text alerts about the account. They can also link their own bank account to the MONEY account and transfer a recurring allowance or one-time amount.

While this account is great for teens under 18, accounts don’t have to be closed or rolled over when the account-holder turns 18. However, account-holders do have the option of opening their own Capital One 360 Checking account and transferring some or all of their balance into it. Also, MONEY accounts are paper-free, so there are no checks available.

  • Takes account holders as young as 8

  • Earns interest

  • Account holders can keep their account after they turn 18

  • Overdraft Fee: $0 with Auto-Decline or Free Savings Transfer .
  • ATM Fee: $0
  • more than 70,000 ATMs nationwide

What Happens To A Student Bank Account When You Graduate

In most cases, banks will automatically convert your student account into a standard account upon your graduation. Your bank will shift the account based upon your age, or based on the age of the account, or when you officially graduate. If you take more than four years to graduate, you may need to show your bank proof of your continued enrollment to maintain your student bank account.

Student bank accounts offer a low-fee option for high school and college students. The lack of monthly fees, the low minimum deposit requirements, and the offers to waive specific fees all help new account-holders learn the ropes of money management inexpensively. Having a student bank account allows students to keep their focus on their classes rather than jumping through banking hoops to keep their money safe.

Best Savings Accounts For College Students

Savings accounts are one of the biggest things that college students need to manage their finances when completing their education. Having a safe place can store your money can be one weight off your mind, and there are many banks all across the United States, along with different types of accounts. Whether you are a domestic or an international student within America, it is worth checking out what bank accounts there are available for students. There are many banks and bank accounts, so the best way to narrow them down is to look for what they are offering students. Many bank accounts have a monthly fee or service charges, but some waive those fees for students.

Furthermore, it is best if you open accounts in banks that have ATMs on college or university campuses. Using a different banks ATM to withdraw money from the bank you hold your account with can result in being charged for your withdrawal. Sometimes banks that have ATMs on your campus may have some kind of affiliation with your university and could provide you added benefits for opening an account.

Following are some of the best savings accounts for college students in the US.

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What Colleges Can My Kid Go To

When it comes time to pick a college, 529 education savings plans may be more flexible than prepaid plans.

A 529 education savings plan can be used at most colleges and universities, including public schools, private schools, out-of-state schools and some foreign schools. You can even use up to $10,000 per year to pay for a public, private or religious high school or elementary school.

What Are The Advantages Of Student Chequing Accounts

The Best Savings Accounts for College Students in 2020

On top of the fact that student chequing accounts typically come with no or low monthly fees, some of their other advantages include:

  • Unlimited or numerous debit transactions per month
  • Low minimum initial deposit or balance requirements
  • A specified number of free email money transfers
  • Rebates toward the annual fee of certain credit cards

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Best For Yield: Ally Interest Checking

Like some of the other contenders on this list, theAlly Bank Interest Checking account isnt strictly a student checking account. But its two-tiered yield scheme is tops among accounts open to students:

  • 0.10% APY on balances under $15,000
  • 0.25% APY on balances of $15,000 or greater.

Plus, with no monthly maintenance fees, no minimums, thousands of in-network ATMs, and a decent yield on all balances, its an excellent starter account for students who dont anticipate banking in-branch anytime soon.

What Is The Best Savings Account For College Students

Almost all of the banks on our list have specifically designed savings accounts for students. And to be honest, picking the top 3 wasnt easy!

All things considered, we believe Chase, Discover, and PNC are your best bet.

For one, all three banks offer free maintenance and a zero minimum deposit, meaning you wont have to pay a dime to open your online savings account. Furthermore, each bank has a large number of available ATMs, and outstanding mobile apps too.

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Alterna Bank No Fee Echequing Account

About Alterna Bank: Alterna Bank is the online bank operated by Alterna Savings. Alterna Savings is the first and oldest credit union in Ontario, operating since 1908.

  • Fees: None
  • Monthly transactions: Unlimited
  • Interac e-Transfers: Unlimited

Why We Love It: Alterna Bankâs chequing account is entirely free to use, whether youâre a student or not. This online bank account comes with free transactions, unlimited Interac e-transfers, and no cost accessibility to over 3,300 ATMs affiliated with the EXCHANGE Network. Many Alterna Savings branches are located on university and college campuses. Additionally, Alterna Bank was the winner of the Personal Finance Awards of 2018, in the chequing accounts category.

When To Start Saving For College

BEST Bank Account For College Students

The old adage about the best time to start something being yesterday holds true when it comes to saving for college. You should start saving for college as soon as you can. The longer you let your savings stay invested, the more time it will have to compound. Many parents start saving as soon as a child is born and some may start saving even earlier than that.

A parent, grandparent, guardian or really anybody else who wishes to fund to that childs future educational expenses should start, in my opinion, right away if not when theyre born, says Joseph Voellm, a certified financial fiduciary at JL Smith Group in Avon, Ohio. This would allow the money to grow and compound over time to meet that future.

Deacon Hayes, a personal finance speaker and podcaster, advises parents to tell loved ones about their college savings plans. If you have a birthday party for your kid, one thing you could do is ask for money towards your kids college instead of gifts. You could do this by using an app where you would share a link for contributions or simply ask for cash.

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Should College Students Have A Savings Account

Yes, having a savings account as a student is a really good idea for several reasons.

Students face many challenges when it comes to finances from loans and living on a budget to depending on parents. Consequently, some people even look for side jobs to help them pay bills, rent, and school supplies.

However, youll often find yourself in an unexpected situation where you will have to spend more money than originally planned like car repairs or buying special clothing for a special date, for instance. If you want to feel financially stable and independent, you should start saving while still in college.

Not only will this help you have the upper hand when it comes to emergencies, but it will also teach you financial responsibility.

What Are Student Chequing Accounts

Student chequing accounts are bank accounts designed to help post-secondary students save money on fees, for as long as they’re in school. While each bank has its own specific requirements to open a student account, you will always need to be enrolled in a post-secondary program at a recognized educational institution such as a university, community college, or CEGEP, to open an account. You must also be within a defined age range, typically 18-25 years old, though this can vary.

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Rbc Student Banking Account

The Royal Bank of Canada is Canadas largest bank by market capitalization. It was founded in 1864.

Their student chequing account has no monthly fee and offers 25 free debits per month and unlimited Interac e-Transfers. Additional debit transactions cost $1 each.

When you open a new account, you could qualify for a cash bonus if you meet the eligibility criteria.

Also, you can link Petro-Points to your RBC debit or credit card to save 3 cents per litre when you purchase gas at Petro-Canada locations.

  • Monthly service fee: None
  • Other perks: Save on gas at Petro-Canada

RBC has the largest bank branch and ATM network across Canada.

Related: Best Bank Accounts for Newcomers.

Best Banks For College Students

5 Questions to Ask a College Financial Aid Advisor

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Many financial institutions offer deposit accounts with college students in mind. Some of them are great, but others arent.

When looking for a new banking service as a college student, seek out accounts that have the following: no or easily avoided monthly fees, solid overdraft policies, good interest rates, extensive ATM networks and online banking. The following institutions have accounts that offer all or most of those features.

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Best Savings Account For College Students For A Frugal 2022

Before starting the best four years of your life, you ought to gain a stable financial footing first more savings means less worry! Namely, if you want to take control of your investments, you need to open the best savings account for college students that will help you save enough just money to go through college and still have some bucks left to buy that new car youve been longing for since forever.

Enter the Capital Counselor team of financial experts.

To assist you in your quest, weve created a list of banks that offer various savings and checking accounts for students, and we based our criteria on:

  • Age restrictions

So, lets get down to business!

When Should I Start A College Fund For My Child

When it comes to saving for your childs college education, the sooner you start, the better. Not only does starting early give your college fund more time to grow, but it also can allow you to reap the benefits of compound interest.

Vanguard provides an excellent example of how compound interest makes an early start valuable. According to the financial services company, if you start saving for college when your child is born and invest $25 per week at 6% annual interest for the next nine years before stopping a total investment of $11,700 your fund will total about $26,750 when your childs ready to go to college at 18. But if you wait nine years before beginning to save, and all other factors remain the same, youll have a fund of only about $15,800 by the time your child is 18. The stark difference is due to compound interest.

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Make Sure Your Savings Are Protected

Thanks to the Financial Services Compensation Scheme , any money you put into a savings account will be protected if everything goes down the pan at the bank which holds your money.

You’ll get your money back within seven days if the bank goes bust, and the process is automatic so there’s no need to claim.

So whichever bank you pick, make sure they’re backed by the FSCS.

Developing The Best Strategy

Best Savings Accounts For Students

With one-third of the recommended college expenses expected to come from savings, you can consider which strategy works best for you and your family. Keep in mind that the next third can come from current income, including funds from grants and scholarships, and the final third from future income in the form of student loans to be paid back.

When strategizing for college savings, you may find that a combination of plans works best for your family. Consider the speed in which you can save, how far in advance you can begin saving, and the projected cost of school. Also, keep in mind that grandparents can contribute an annual gift tax exclusion.

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College Student Savings Faq

Now that you know the best accounts, here are some common questions we get a lot about college student savings accounts.

What makes a college student savings account different?

College student savings accounts are designed for a college student. This means they usually have no minimum balance requirements, no fees, and are usually online.

Should college students have a savings account?

Yes! Savings is important at any age, and college students should focus on saving at least $100 per month.

What should a college student look for in an account?

College students should find an account that matches their needs. This usually means being online or app-based, no minimums, no fees, and easy to use.

Are savings accounts worth it?

Yes! Savings accounts are a great way to safely store excess cash that could be needed for emergencies and more.

Navy Federal Basic Savings

Minimum balance to avoid fee: $0Online and mobile banking: Yes

Students who want a more personalized banking experience can open a Passbook Savings account in person at First Republic Bank. The bank offers competitive variable interest rates and daily compounding of interest with this fee-free account.

You can also take advantage of free online banking services, which allow you to securely access your account, transfer funds and pay bills. Deposits and withdrawals must be made with Passbook by visiting a First Republic Preferred Banking Office.

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Andrew Lisa contributed to the reporting for this article.

Methodology: identified the best student savings accounts based on interest rates, monthly fees, minimum opening deposits, minimum balances needed to avoid fees, mobile and online banking offerings, and student tools and perks. All fees and rates are subject to change at the credit card issuers discretion. Some offers might no longer be available on the credit card issuers websites, depending on how you access the web page. All rates are accurate as of Oct. 15, 2017, except for Ally, Capital One, NFCU and Synchrony bank, which is accurate as of today.

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What Are The Costs Involved With Banks For Students

While most student bank accounts dont come with any fees, there may be a minimum deposit amount required to open the account. Some student bank accounts also come with overdraft fees, which can be upwards of $30 if the account is overdrawn. If you write checks from a student bank account, checks may be an additional fee as well.

ATM fees may apply for using an ATM outside of the banks network, though some accounts will reimburse these fees. For less common transactions, such as cashiers checks and wire transfers, each bank has its own fee structure, and we recommend reviewing all of the account fees before signing up.

Tips To Build Your Savings

Do Not Open A 529 Account For Your Child Until You

The college and university you pick, and the major you choose, are so important in determining the career path in life you take.

The same is true about selecting the right bank and savings account. Once youre in school, the work is on you to study hard and make the grade.

And, after youve opened a savings account, its up to you to establish and build a solid savings foundation.

Follow some of these tips to get started:

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How We Determine The Best Savings Accounts For Students

SmartAsset analyzed around 20 of the most popular savings accounts suitable for students to find the best options. In scoring this study, our experts factored in banking features such as annual percentage yield , minimum deposit size, monthly maintenance fees, online/mobile banking and financial education tools.

Bmo Plus Student Chequing Account

About BMO: The Bank of Montreal first opened its doors in 1817, making it Canadaâs oldest bank. The major financial institution has conducted business in Canada for over 200 years.

  • Fees: $5
  • Sign-Up Promo: Chance to win a $10,500 scholarship
  • Monthly transactions: Unlimited
  • Interac e-Transfers: Unlimited

Why We Love It: The BMO Plus Students Plan comes with a chance to win $10,500 that goes towards one lucky studentâs tuition.

Even non-winners can still win big. The BMO Plus Student Chequing Account comes with no monthly fees, 30 monthly point-of-sale transactions every month, and unlimited Interac e-transfers.

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Are Online Savings Accounts Safe

You might be concerned using an online savings account – but you shouldn’t be. Just like a regular bank, online banks are FDIC insured and your money is just as safe as it would be at a regular bank.

In fact, you might even notice some of the banks above because of their national presence.

Online banks are just as safe as traditional brick and mortar banks. But they come with an added benefit! Since they don’t have to maintain a bunch of physical offices, they can pass a lot of that savings onto the consumer – you! That’s why many of the top banks that offer the best interest rates on savings accounts are online only.

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