As a college student, you'll likely have a list of finances to think about – whether it
involves money for tuition, housing, books, or supplies. But having a hefty set of college expenses doesn't mean college students can't save money. In fact, implementing a savings plan can prove to be a financially smart move for any college student.
One of the most effective ways to save while going to college is to open a savings account. However, just as you'll find variety in checking accounts, there are differences in the savings accounts that you can consider.
Savings accounts generally come in two flavors, 'statement savings' and 'money market.' Both accounts typically allow you to withdraw your money whenever you want, but they may have a monthly limit on the number of withdrawals you can make (typically six). They may also have a minimum balance requirement, and there may be fees if your balance drops below the minimum. Some accounts allow you to withdraw funds by check or ATM. Savings accounts at branch banks usually offer a very low interest rates on your balance. Online banks will generally offer higher interest rates.
Savings account fees
While not all savings accounts have fees associated with them, some banks do charge a fee – either based on a monthly rate, or on your savings account balance. For this reason, it's important to inquire about fees before deciding on any given savings account.
In addition, when choosing a bank for your savings account, be sure to ask about any minimum balance requirements, interest paid on your savings balance, and limitations on monthly withdrawals. You should also find out whether a bank offers mobile, online, or remote banking and deposit services, as these features could come in handy for students with few bank branches near campus. If these services are offered, inquire whether they're available free of charge.