A student savings account is an account that is setup specifically for students to deposit money into and save. They are similar to other savings accounts in that you can transfer money, deposit and make withdrawals, however the fees and charges and interest rates may differ.
There are several types of student accounts for different ages, including:
- Student accounts for tertiary students who can prove that they study full-time either at University or TAFE.
- There are also accounts for primary and secondary aged students.
Although these savings accounts are specifically tailored for students that doesn’t mean they are the only, or best, alternative for students. In fact, standard savings accounts usually offer higher interest rates than student accounts. For this reason it really is best to look around and compare a range of savings accounts to make sure you find the best one for you.
What to look for in a savings account
- The higher the interest rate – the better – so keep an eye out for the best rate.
- Look for fee-free accounts that will allow you to save more by not paying monthly or annual fees.
- Introduction interest rate promotions offer great initial incentives but make sure you find out what the default interest rate is, after the intro period expires.
- Consider a savings account that offers unlimited transactions and withdrawals.
- Think about how and when would you like to access your savings? Perhaps an online savings accounts would suit all your needs and allow for easy transfers. But consider linking your accounts so you can easily withdraw money without waiting one-four business days. If you prefer phone banking or physically going to the branch then make sure you find a bank that has these services.