The average student today might think that the benefits of a student saving accounts are very minimal. After all, the interest rates are very low. However, financial experts find that there are numerous benefits that are associated with college savings accounts. For example, they teach the young student the importance of planning and saving for their financial future. Clearly, this is one hands on approach for the student to learn about personal finances and managing their money at a young age.
Here are a few benefits of opening one of the following student savings accounts:
1. Savings deposit accounts
Every student that is interested in furthering their education should open a savings deposit account. Typically, the student opens a savings account at a local bank or on the Internet. The bank will offer the depositor a modest interest rate on the money that is deposited in their account. However, it is also important to search around for the best interest rates. It is important to note that some banks offer no interest on savings accounts, while others offer a very modest interest rate that will help the money grow.
2. High interest savings accounts for students
The good news is that an account like this is available on the Internet or in a traditional bank. The account is very advantageous because the account pays a much higher yield to the individual than the average account. Thus, making it easier for the money to accumulate and the user to reach their financial goals sooner. Many high interest accounts also offer no fees or lower monthly maintenance fees too. Consider this account if you would like to reach your long term financial goals sooner. In order to find a high interest savings account, perform a quick search on the Internet or contact a local bank for more information on the subject.
3. Student specific saving account
This type of account is primarily for students. The accounts are targeted at students and might make them special offers to get their attention. Student accounts are for short term savings and to help the young person learn financial responsibility and reaching their financial goals. Often, limits are placed on the accounts along with advantages like a low minimum deposit to open an account or no maintenance fee.
4. College savings accounts
Saving for college is a difficult task for students and parents. However, a 529 college savings plan is a great help to the college bound student and the parents are worried about financing a college education. This college saving plan is specifically saving money for college education. Just about every state offers this plan to students.