Saving money is of utmost importance, and the earlier you start in life, the better. Thus, from a young age, everyone should have a savings bank account. Apart from allowing you to save money over a period of time, you also get an interest, which adds to the deposit amount.

Let us understand how to choose the right student savings account.

Have a reason to have a student savings account
There’s simply no “best” students savings bank account, and while some banks offer some privileges, other provide something completely different. Thus, it is important to have a very clearly defined reason to have the student saving account and ensure that the type of bank account you select offers the best in terms of the reason. The reason can be anything, right from having an account that makes it easier to withdraw money, to having easy access to personal devices. Lower fees on overspending or not maintaining minimum balance are also some other reasons.

Beware of freebies
There are many offers that you will find with a student savings account. It is important to stick to the more serious reasons to open a savings bank account and not be lured by the add-ons. Sure, the rewards do add to the main reason, but they cannot become the most important reason to select a particular bank or a type of account. This is important to understand when you’re learning about how to choose the right student savings account.

Fee and penalty
When you’re opening your first savings bank account, it is important to know that you’ll make mistakes. Therefore, you must select a bank account that does not penalize you heavily for having not maintained a minimum monthly balance or withdrawing money too many times from the ATM. The bank account should have a lesser fee and penalty on these and have lower annual fees or account opening charges if any.

Smartness over loyalty
Banking is a serious business, and you will have to think beyond loyalty. It might be true that your parents have their accounts in a particular bank, and the bank representatives will lure you into making an account in the same bank. Always measure your pros and cons and then make a decision. Remember that it’s not just a bank account, and this might stick with you for a very long time.

Access to ATM
Lastly, an ATM of the said bank must be located near your residence. While you can withdraw money from any bank’s ATM now, it gets easier to perform other tasks if you have easy access to your bank’s ATM as there are many other services that you might need eventually.