Nowadays students need to maintain their finances and manage them most productively. The earlier the investment, the better savings. On their educational journey, students need to adopt financial saving habits and learn the importance of savings. The first and most important step to begin the journey of savings, students need to open a savings account and create a safe space for storage. In India, several banks offer savings accounts for students for their future needs. Many banks also offer zero minimum balance requirements which can be highly advantageous to students. In this blog, we will cover some best saving account for students.
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Importance of Saving Accounts
A savings account can benefit students in various ways
- Students will learn about financial management and gain knowledge about the banking system and financial education
- Savings accounts make the students disciplined regarding their regular savings long term. This keeps the students secure in case of future financial emergencies.
- Savings accounts provide a safe and secure place for students to their money storage and reduce the risk of loss and theft
- Apart from regular savings, students also gain additional perks such as interest in savings, discounts and cashback offers which add value to their money.
- Opening savings accounts create a solid financial base for students at an early age.
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List of Best Savings Accounts for Students
Some of the best savings account for students in India are
State Bank of India’s Pehli Udaan and Pehla Kadam
State Bank of India offers savings accounts for students to inculcate the habit of savings in them. The account can be opened at zero minimum balance requirement, making it easier to maintain for students and ensuring that money grows over a certain period of time. The account can be opened for any age with the consent of the guardian and students 10 years or above can have an account of their own. Students are offered a card with a photo imprinted on it with a limit of INR 5000 for daily withdrawal. The interest rate applicable to savings accounts is on a daily basis. It also offers benefits like educational loans and special discounts to the students.
ICICI Students Savings Account
ICICI Bank provides one of the best savings accounts for students studying outside India only so that they can manage their savings without any barriers. The students can deposit money in a currency but the bank will maintain it in Rupees only. It delivers perks such as personalised debit cards, mobile banking and Internet banking services. The minimum required amount that needs to be maintained is INR 5000 with multiple transactions from any ATM across India. The interest received is non-taxable and a charge of INR 250 is charged if the balance is below the maintained level.
Kotak Mahindra Bank’s Junior Savings Account
Kotak Mahindra Bank is one of the leading private banks in India, offering a wide variety of services. It allows savings accounts for majors as well as minors. The debit card allotted to children above 10 years is independent of their guardian and has a limit of INR 5000 for daily withdrawal, and is not a zero balance account. Non-maintenance of the savings account can be charged from INR 150 to INR 300 depending upon the balance. Kotak Mahindra Bank also offers Recurring Deposits and Systematic Investment Plan.
Karur Vysya Bank
The Karur Vysya Bank allows the students to open their savings accounts, enabling them to enjoy the benefit offered by the bank up to the age of 29. For students above the age of 18, the facility of checking books is also provided. Students who are below the age of 12 will need to open an account jointly with their parents/guardians. There is no charge for maintenance in the first year but from the second year, a charge of INR 70 will be charged for maintenance. The transaction limit is up to INR 10,000 monthly, charges will be added if the amount of transaction exceeds the limit.
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Eligibility for Opening a Savings Account
To be eligible to open a savings account as a student, one must be:
- 18 years or above to open the account independently. In the case of minors, joint accounts can be created with the consent of their parents
- Students must be enrolled in a recognized education institute and should provide proof of the same
- Necessary documents such as Aadhar Card, Address Proof etc will be required
There are several banks that allow zero-balance accounts but some of the renowned banks are ICICI and SBI.
The average rate of interest in the Savings Account ranges from 2.50% per annum to 7% per annum.
This was all about the best saving account banks for students in India. Hope this blog helps you with some recommendations of student saving accounts. For more information, keep following Leverage Edu.