If you’re a student, you may have heard about the importance of saving money at least once, be it from your professors or parents. If you just realized its importance, it’s the best time to start saving. Opening a savings account is the easiest way to save some bucks, especially if you’re a college student who needs to make investments for your future and rainy days. Let’s take a look at the benefits of savings accounts for students in detail.
- Earn interest
The funds deposited in a savings account accumulate interest over a period, which is one of its biggest advantages that money kept in a home safe won’t provide you with. The rate of interest may vary depending upon the bank and account agreement, but you’ll surely earn by opening a savings account.
- Protection against unseen expenses
You can never predict an emergency. A broken phone, a serious injury, or an automobile repair may burn a hole in your pocket, but that’s when the money in your savings account will prevent you from getting into debt.
- Easy access
Money deposited in a savings account is always available when you need it. If you keep hard cash at home, it may be stolen or not readily available in times of need if you invest in other means. With a savings account, you can withdraw your money at any time.
- Protected by insurance
One of the most important benefits of savings accounts for students is that every penny deposited into a savings account is protected by FDIC insurance. This means even if your bank suddenly declares bankruptcy, your money will be substituted by the government up to a certain amount.
- No large initial investments
A savings account does not require large amounts of investments to set up. You can open an account for as low as $5. Plus, it has no maintenance cost, and you can keep a low minimum balance for as long as you want.
- Pay your own college fees
A savings account helps students provide funds for college education and private schools. With educational fees touching the skies, a beneficial savings fund can lessen the burden of fees for your parents or guardians.
- Credit facility
If you don’t have enough funds for any particular opportunity, banks may give you credit if you have a savings account. Transactions in the savings account may give a loan representative enough evidence of your stability and discipline.
- Shield your future
Another benefit of savings accounts for students is that they can start saving for whatever they wish. It may seem irrational to think about buying a house, getting married, having children, or planning your retirement at this point in your life, but these vital milestones in your future life will require resources.
Also, if your bucket list includes traveling to exotic places and seeing the world, you’ll need a good amount of money. Your savings account will be your savior whenever you need financial support.