When it comes to taking care of your own finances while you are studying, it becomes a tedious task to undertake. Following your parent’s footsteps or perhaps your siblings’ footsteps would be the right way to go about it.
You can even get yourself a student account to enjoy the benefits while you are still studying. Student bank accounts offer many features to the students and become the baby steps towards financial management.
5 best student savings account you should consider opening this year
Here is a list of banks that provide you the option of opening a student account and the features:
- ICICI Students Savings Account: ICICI offers its student accounts to both Indian students and foreign students plus a NRE account. The bank accepts and allows opening of the account with any currency but maintains the account in INR.
Here are the features of the ICICI Students Savings Account:
- A minimum balance of INR 5000 must be maintained.
- The bank pays interest of 4% p.a. and 3.5% on day balances.
- ICICI offers multiple transactions from any ATM in India.
- The interest earned is not taxable in India.
- In case of non-maintenance of the monthly average balance, the bank charges the following fees:
- The balance between INR 2,500 to INR 5,000 is charged with Rs 250 plus GST.
- Balance less than INR 2,500 is charged with Rs 350 plus GST.
- Kotak Mahindra: Kotak Mahindra offers junior savings accounts for children with attractive features. Here is what it offers:
- The average monthly balance to be maintained is Rs. 5000 for Nova variant or can be opened as a Zero Balance Account.
- The bank offers 6% p.a. interest on the savings accounts deposits.
- Debit cards will be issued to children above the age of 10 and will have a limit of Rs. 5000 for daily withdrawals.
- Non-maintenance of the balance in the account will incur charges, which range from Rs. 150 to Rs. 300.
- Punjab National Bank: Punjab National bank offers students savings account to students studying in any recognized educational institute in India. The account is valid until the student attains the age of 21 years. The PNB Vidyarthi Savings Fund Account Scheme does not facilitate overdraft features and here is what it offers:
- It is a zero balance account, meaning it does not require any initial deposit for the account.
- The bank provides first two cheque-books free of cost. For additional cheque books, additional charges may be applicable.
- There are no charges for debit cards and ATM cards. However, there are some charges incurred by the account holder for maintenance of the cards.
- Punjab National Bank does not charge any incidental charges.
- The bank, unlike ICICI Bank, does not provide interest on the amount held by the account holder.
- Karur Vysya Bank: The Karur Vysya Bank offers you the option of opening a student savings bank account and enjoy the benefits of the bank’s student account until you turn 29. The bank offers interactive interest rates and gives rates based on days. The rates begin at 5% and go up to 7%. Here is what the bank offers for its student accounts:
- The bank offers cheque books to students who are above the age of 18.
- Karur Vysya bank offers its student savings account scheme to everyone. The account can be opened with the name of the parents with the student holding the account jointly. When the student attains the age of 12, the student can operate the account on their name.
- The ATM cards for students below the age of 12 will be issued in the name of the parents. And for students aged above the age of 12, will be issued in their name.
- The ATM card has no costs in the first year. However, AMC of Rs. 70 is charged from the second year on a yearly basis.
- Cash remittances can be made from the branch for any amount. However, for non-branches, the amount is fixed at Rs. 10,000 p.m. For remittances above the limit of Rs. 10,000, charges may be applicable.
- SBI: State Bank of India offers accounts for minors and gives attractive features. There are two variants of the savings accounts for minors, namely- Pehli Udaan and Pehla Kadam.
- The account for Pehla Kadam can be opened for any age with the guardian as the joint account holder. As for Pehli Udaan, a minor of age 10 can operate the account in their own name.
- Both accounts are Zero Balance accounts.
- Photo Embossed ATM cards are issued for both account types with a limit of Rs. 5000 for daily withdrawals.
- The interest rate is applicable for Savings account on a daily basis.
- The feature of overdraft is present only for Pehla Kadam against fixed deposits.
With many options for student bank accounts, you can find one for your child easily. Additionally, you can avail the feature of open student bank account online for hassle-free procedures.