The pros and cons of savings accounts for students
Most people think of saving money only when they start working a full-time job, but it is never too early to start saving. If you are a student looking to start your first savings account, here’s a list of the pros and cons of this type of account.

Pros of a savings account for students
When banks or financial institutions offer savings accounts for students, they take the extra step to offer as many advantages as they can. They do this knowing that students are not yet earning, so they need incentives to open an account. Listed here are some benefits of savings accounts for students:

• No fees
  The best students’ savings accounts charge no fees for transactions and for keeping the account open. In fact, this is one of the most important features a student should look for when searching for a bank to open an account with.
• Easy withdrawals
  Students can see their money online and make withdrawals and transfers easily, and they can get instant access to their funds whenever needed. This definitely works in the case of an emergency when students need access to money immediately and do not want to rely on a credit card.
• More savings with online accounts
  Savings accounts that do not have a physical office are known to offer higher rates of interest to their customers. This can work really well for a student just starting to save. Since the financial institution has no expense in maintaining a brick and mortar office, they pass those savings on to the student or customer in the form of higher returns.

Cons of a savings account for students
When looking at the benefits of savings accounts for students, it is also wise to know any drawbacks so that you can make an informed choice. Some of the cons of a savings account for students are:

• Low interest rates
  Savings accounts have some of the lowest returns, which may not work in favor of students who want their money to grow while they work a part-time job to make ends meet. If this is the case, a savings account also needs to be backed up by another form of investment.
• Possible penalties
  As a student, expenses are often high, and funds may be low. If they keep withdrawing money from their savings account, the funds may drop below the minimum balance that is required by many banks and financial intuitions and they may incur a penalty. This can put a strain on the already depleting finances.

While there are cons to a savings account for students, the benefits should definitely be considered. A savings account can benefit students, and they can start learning about banking while saving up slowly and steadily. However, it is important to explore options for savings accounts with different banks before deciding on one.