College is characterized as one of the most financially straining times in a young adults life. However, being financially responsible is still very important, and that means still trying to save. Every student’s financial situation is different, but by even saving just $50 a month you have $600 at the end of the year – it adds up! It also helps to have a savings account that works for you – like unlimited transfers and high-interest rates. We have compiled some of the most popular savings accounts for students to help you decide which works best for you.
Many financial institutions have a type of money market account, these kinds of accounts usually offer higher interest rates than a traditional savings account. Usually anywhere from .5-1% higher than the industry average for savings. However, these accounts also usually require a larger deposit to get started, and also require a minimum balance at all times to receive those benefits.
These kinds of accounts are sometimes referred to as CDs and are minimal risk option for saving and growing money. With this kind of account, you pick the amount of time you’re willing to deposit your funds, and you are guaranteed a set amount of growth. The cons of this kind of account are that the money you deposit cannot be used or withdrawn from for a set amount of time, or you risk being assessed a penalty. Another con to this kind of account is that you are unable to add money like other savings accounts. Usually, this is because these kinds of accounts require a minimum deposit.
These accounts are created with students in mind. If you don’t have very much money to start, these kinds of accounts are great because they usually don’t require a large deposit to open. These are ideal for students as well because they usually don’t require a minimum balance in order to keep the account open. Cons to this account are that they usually don’t have high-interest rates meaning that there usually isn’t a very high return in holding your money there.
Deciding to save for college is a great way to practice discipline and get started on building a financial foundation. To get started on opening a savings account or to find a savings account that works for your financial situation, contact us at 800-835-3400. We are here to help you on your financial journey.