Life starts after you transition from high school to university. There are a lot of fields in learning that you do not explore during your secondary years. These factors of learning mostly stay under the radar of adulting. One of the major factors you need to consider is managing your funds. This is the only stage you can hit and try with your fund management. In order to initiate your journey of money management, the most important step you need to take is opening a bank account. Now all you need to figure out is what is the best bank for students. The most promising bank accounts for students are being delivered by Neo banks these days. Therefore, we are going to provide you with a whole guide on the best neo bank for youngsters and how they can benefit their life and studies.
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Major Benefits of Student Bank Account
- No hassle of maintenance
Many government-owned and private banks offer zero balance bank accounts for students starting their first year of college. As a result, unlike regular savings accounts, there are no inconveniences associated with maintaining a minimum level in a student bank account. Students benefit from this since they don’t have to pay any additional fees at the end of the semester when they typically don’t have the money to do so. However, with some banks, students could be required to keep a small minimum balance or pay monthly maintenance fees. Thus, best neobanks for youngsters always offer zero balance accounts for students.
- Easy Access to loans
Another of the biggest benefits of having a student bank account is that many financial institutions provide educational loans to newly opened bank account holders. So, they can successfully pursue their high school or college studies. So even if they don’t have enough money from their own resources, all current holders of student bank accounts have the option to continue their education with this interest-free overdraft facility.
- Added discounts & perks
A student bank account also has the benefit of including numerous benefits and miles from other banks. Some banks may provide bonuses like gratis accidental insurance coverage with the debit card. While others may offer rebates on diesel fuel for their automobiles when these cards are used at petrol/diesel stations. Once more, certain banks may also provide laptop protection which is essential to students’ academic programs.
- Much higher-interest rates
The favorable interest rates the bank pays on the funds deposited by the students on this specific account are another advantage of the student bank account. As a result, it immediately motivates pupils to practice frugal spending and save money.
- Ease of access
The ability to effortlessly conduct banking activities from distant locations is one of the benefits of having a student bank account. Students are provided with a free debit card, free online banking, and free phone banking alternatives. So, they can pay conveniently from anywhere. They do not have to go to a bank for this.
- Additional rebates
Debit cards from several banks now offer discounts on a variety of transactions, including in-store and online shopping. Additionally, it can provide redeemable points earned on every transaction, which students can use for future purchases or other uses.
- Grant offers
The Indian government now periodically offers unique scholarship programs to deserving and needy students. Therefore, it is simpler for students to benefit from educational grants if they have already utilized the option of a student bank account. The concerned bank may promptly transfer the funds to the specific student’s account. Scholars can easily complete their coursework and further their education without having to worry about finance. It definitely is not the situation for unfortunate students who do not have bank accounts.
- Easy conversion
By successfully completing his coursework and entering the workforce, the student should try to convert his student bank account into a regular savings account. As a result, rather than having to register a new bank account, he will benefit from saving time and money.
The major difference between savings and student’s account
Scholars benefit from having a zero balance in a student bank account, among other differences. However, students typically need to maintain monthly balances of at least INR 10,000 and more in conventional Indian savings accounts. Again, if the necessary amounts are maintained each month, a regular savings account can disregard monthly costs for students. While most student accounts are available without any monthly fees or additional costs for using various banks’ ATMs.
Hence, it is clear by now that student bank accounts have several benefits. These benefits include fast conversion, flexible opening procedures, digitized transactions, interest-free loans to scholarships, and free bonuses and discounts.
The difference between a regular bank account and a student bank account is the best financial rewards. The level of satisfaction in the eyes of students and their guardians will ultimately determine which option is best for you.
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