As a student, teen or college going youth, getting started with your financial journey could be enticing or liberating. This is because it teaches you financial independence and your journey starts at a young age. The best way to start off is by opening a student bank account as it’s hassle free and easy to access it yourself without a lot of documents and fees involved.
When you are about to get started with the process of student bank account, you should be looking at opening an account with low maintenance fees, reasonable interest rates, and strong customer service.
Some banks have minimum balance requirements, so before you go ahead with the choice of your bank, ensure that requirements are met. It’s also important that you look for an account that offers online and mobile banking. This so you can access their account information anywhere.
Initially, it could be the responsibility of the parents to open a Savings account or a student bank for their child. Once that step is completed, the parent must encourage the child to deposit any amount he/she receives in the savings account. There are several banks which offer no-fee and no-minimum-balance accounts; such banks must be chosen for opening a savings account.
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We have listed below a few advantages of a student bank account
Start the habit of saving from a young age-it’s never too late to develop a serious habit about saving money. Whether you are a teen, in your college or have just started earning, you are inclined to spend most of your money towards luxury, buy gadgets, clothes, food and movie tickets.
At this point of time, you may not have responsibilities and financial liabilities and would be the best time to think about your journey with saving money. With a savings account, your money is accessible but you wouldn’t go out of your way to withdraw the amount and spend it. Therefore, it’ll be easier to hold on to that money and only grow it further.
Out of sight is out of mind
Out of sight, out of mind is the goal that you need to set right away. If you don’t make the transfer yourself, you won’t forget to save. This way you won’t pay attention to the small amount transferred from the savings you made. Also, if your money is put away in a student bank account you will not have an urge to spend it because that money is locked.
Helps in setting goals
As a child or someone who has just started college, you may have limitations when it comes to buying the things you desire or go to places you wish. But you can still do it if you have a goal set and with the help of a student bank account. The process may take some time but you will definitely get there.
Putting every penny aside for a year in the savings account can help you inch closer towards your goal, whether it’s that Goa trip or a new set of headphones, you can use your savings account to work in your favour. A savings account allows you to fix a savings goal and strive towards it. Setting and achieving goals is a life hack and if you develop it in your early years, there’s no going back.
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You end up learning the value of investing
A basic savings account can also help you learn that investing smartly and at regular intervals can help you grow money. Even if you end up putting some money aside consistently you will end up getting some amount of interest, which itself will feel like an achievement.
You become street smart- you might be wondering as to how can someone become street smart just by opening a student bank account ? Let’s break it down for you. When you are wanting to open a student bank account, you end up making a couple of visits to the bank, you meet people, you learn how things in the banking sector work. Also, you get your own debit card which you might need to use sometimes. All these activities for a teen or college going student are liberating and end up making you vigilant and responsible.
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The money you invest today is going to give returns tomorrow
Typically, be it for a child or an adult, putting your money in the savings account could be one of the safest ways to put aside and store your money. The best part however is that you can earn interest for your deposits. This, works in a way that the more money you deposit, the more interest you will earn.
Listed above are the few benefits of having a student bank account. You can get started as early as you want, there’s no particular bar. It’s rather suggested that the early you start, the sooner you will reach your goal.