Savings accounts for students are mainly intended for college students to be able to save money; however, some banks offer such accounts to grad students too. In comparison to checking accounts, these are quite hard to find. Experts advise that instead of limiting one’s search to larger banks for these types of accounts, one can check with their local banks and credit unions. However, they advise students to consider a few important factors before selecting an appropriate one.

Following are the important factors that students should consider while picking the ideal savings accounts that meet their requirements:

1. Location of the bank
Firstly, students must decide on the location from where they want to carry out their banking functions – at home when they are staying with their parents or at college. If they prefer flexibility in terms of banking, they might choose a national bank that has its branches at different locations. However, if they choose to conduct banking from a single location, a local bank or a credit union will be suitable for the purpose and they might be able to get a better deal from these organizations.

2. Additional fees
Before deciding to open savings accounts for students, it is important to check if the banks impose any additional fees on those accounts or whether there are certain limitations or restrictions associated with it. Many savings accounts do not charge a monthly fee, provided the account holders maintain a certain balance in their accounts. They also limit the number of withdrawals in a single month. However, banks that offer students savings accounts often do not impose these limitations, understanding that it is quite difficult for students who are studying and not working to maintain the minimum balance in their accounts.

3. Mandatory opening of checking accounts
Many banks that offer savings accounts for students also place terms of mandatory opening of checking accounts. Some banks deduct a certain amount from checking accounts every month and some checking accounts also have their own set of separate requirements. Students are required to ensure that they can meet all those requirements. As per the experts, students should also go through the terms and conditions placed by the banks before making any decisions.

4. National banks
As mentioned earlier, national banks offer a lot of flexibility in terms of banking. Even if one has to move far away from their home to attend college, they will not face any problems in conducting their banking activities. The rate of interest they offer for savings accounts for students varies as per different states. Some banks also allow students to open savings accounts without any minimum opening balance provided they have a checking account. If the students already have a checking account in any national bank, they can check with their banks to know whether they offer this facility.

5. Credit union
Apart from all the above factors, students should check with credit unions as well. These organizations often offer better deals regardless of the account holder being a student or not and the interest rates are also comparatively higher.

Therefore, students must compare among various banks and their terms and conditions to determine which savings account will be apt for them.