The banking industry has not historically provided adequate support for student savings accounts. Many students don’t have “much” to save, which is why. But just because you don’t have a lot of money doesn’t mean you shouldn’t be able to choose from a number of great savings accounts. The Best Student Savings Accounts
But banks have come to understand in the last several years that students and young adults are important for future growth. And a lot of banks are putting money into this connection by giving students the best savings accounts.
This post is for you if you want to open your first bank account or find a better savings account.
When college students opt for an online bank, they desire a few important things:
They don’t want to pay any extra fees.
They want to be able to get to their money easily from wherever.
These are the top savings accounts for students that fit this description.
Below is a list of the top savings accounts for students.
The Best Savings Accounts For Students
Choosing a high yield savings account for students isn’t rocket science – although you do need to watch out for banks that advertise higher rates but come with a catch, like minimum balances or a teaser rate that drops after a few months. The Best Student Savings Accounts
The banks we feature here have no minimum balance, no monthly or low balance fees, and the advertised rates are permanent. Their rates differ slightly, but they’re otherwise similar: All offer 24/7 customer service and electronic transfers within a couple of days.
You might notice that most of these banks are online. That’s okay! That’s what allows them to offer the higher rates and low costs compared to your local bank. As a student, it’s also great to have a bank that specializes in online banking. That way, you know you can access your money from anywhere. Plus, you might want to combine these savings accounts with a college student checking account here. The Best Student Savings Accounts
We maintain an updated list of the best online savings accounts for students here. This list is updated daily with the best rates and terms you can find – including some with bonus offers! Check it out here:
CIT Bank
CIT Bank’s Savings Connect account is one of our favorite for college student savings accounts because they consistently have a top yielding account, and you get the best rate for working on your savings!
Right now, you can earn up to 3.65% APY*.
It does require a $100 minimum deposit to open. They used to have a minimum amount to earn the top rate, but they’ve since eliminated that – which is great for college students! The Best Student Savings Accounts
Barclays Bank
Barclays Bank is a great choice for a student savings account because there is no minimum balance required to open an account! They offer a fairly standard online savings account that’s highly comparable to other high yield online savings accounts on this list.
Unlike others on this list, there is no minimum balance required to open an account with Barclays. They are about as traditional a bank as you get. Plus, they also don’t charge any monthly fees as well. The Best Student Savings Accounts
Right now you can earn up to 3.85% APY.
Bonus Offer: Right now, Barclays is offering a $200 bonus to new bank customers who open a Tiered Savings account and deposit at least $30,000 within the first 30 days. You’ll need to maintain at least $30,000 for the next 120 days, and the $200 bonus will be added directly to the account. Terms apply. The Best Student Savings Accounts
Live Oak Bank
Live Oak Bank offers a compelling high-yield savings account. You can open this account online and you won’t run into any monthly maintenance fees.
Right now, you can earn 3.80% APY on your account with just $0.01.
Live Oak Bank was founded in 2008 in Wilmington, North Carolina. The bank’s main focus is on providing small business owners with worthwhile bank tools. However, you’ll also find high-yield savings products for personal use.
HSBC
HSBC consistently maintains one of the highest yielding online savings accounts. They are always raising their interest rate to be competitive and at the top. Furthermore, their platform is easy to use and you can sign up and have your savings account funded in just minutes.
With HSBC, you can earn interest on your entire balance and start with a low minimum.
American Express Bank
Most people think about American Express for their credit cards (and we love the best American Express Credit Cards). However, American Express also consistently has one of the top savings accounts available based on interest rate. And this is great for students because they have $0 minimum to open. The Best Student Savings Accounts
Marcus By Goldman Sachs
I had never heard of this bank until this year, but they have been making a full advertising blitz to get the word out. This new banking product consistently has some of the best rates and terms you’re going to find online. They are always at the top of the list of best interest rates, and it only has a $1 minimum to open an account.
Our Criteria For Assessing Savings Accounts For Students
As we mentioned earlier, college students have different criteria that other bank patrons. When we look at savings account options for students, we look at the following criteria: The Best Student Savings Accounts
1. No Fees
We firmly believe that savings accounts should be free. This means no fees. No monthly fees. No transaction fees. No fees to withdraw your money. We also hate accounts that require certain things like direct deposit.
Free should actually be free.
A lot of traditional banks nickel and dime their consumers, so while you might earn a high interest rate on your money, you might also find out very quickly that you’re losing that same “extra interest” to fees. The Best Student Savings Accounts
Always keep fees at the top of mind when assessing a bank.
2. Easy To Access Your Money
We believe that it should be easy to access your money. It’s your money! It shouldn’t be locked away somewhere that you can’t easily get to. If you want something that isn’t as easy to access, check out our article on the Best High Yield CDs.
With easy access, consumers should be able to go online and quickly and easily see their money, setup transfers and withdraws, and have no fees to have this access.
Furthermore, we love the online banks because, unlike local banks, they are available nationwide. Some local banks may have trouble helping a student who went away to college. The Best Student Savings Accounts
You might also look into finding a money market account very similar to a savings account. We maintain a list of the best money market accounts here.
Are Online Savings Accounts Safe?
You might be concerned about using an online savings account—but you shouldn’t be. Just like a regular bank, online banks are FDIC insured and your money is just as safe as it would be at a regular bank. The Best Student Savings Accounts
In fact, you might even notice some of the banks above because of their national presence.
Online banks are just as safe as traditional brick-and-mortar banks. But they come with an added benefit! Since they don’t have to maintain a bunch of physical offices, they can pass a lot of that savings onto the consumer—you! That’s why many of the top banks that offer the best interest rates on savings accounts are online only. The Best Student Savings Accounts
Comparing The Best Savings Accounts For Students
Here are some other great accounts that you should consider:
Why Should You Trust Us?
The College Investor has been actively tracking the best savings account rates since 2018, with a daily updated list that monitors roughly 50 banks and credit unions that have a history of great rates. But we also are always scouting out other banks that may compete on this list. The Best Student Savings Accounts
Unlike other well-known companies who create “best savings account rate lists”, we strive to put out rates in order highest to lowest so that you can know you’re actually getting the best rate. And if you don’t make the cut, too bad. You can find the full list of our bank review here.
College Student Savings FAQ
Now that you know the best accounts, here are some common questions we frequently receive about savings accounts for college students.
What makes a college student savings account different?
Savings accounts for college students are designed for a college student. This means they usually have no minimum balance requirements, no fees, and they are usually online.
Should college students have a savings account?
Yes! Savings is important at any age, and college students should focus on saving at least $100 per month. The Best Student Savings Accounts
What should a college student look for in an account?
College students should find an account that matches their needs. This usually means being online or app-based, no minimums, no fees, and easy to use.
Are savings accounts worth it?
Yes! Savings accounts are a great way to safely store excess cash that could be needed for emergencies and more. The Best Student Savings Accounts