Taking care of the finances is the last thing on a student’s mind. However, the earlier one manages and saves money, the better it is. Savings Account is the simplest financial product, and students can easily start their financial life by opening a savings account of their choice. Many banks offer student savings account to their young customers. Here are the five best savings accounts for students designed to take care of the needs of the students.
5 Best Student Savings Accounts
Here is a list of banks that provide you with the option of opening a student account and the features.
ICICI Bank offers student account which is an NRE (Non-Resident External) Savings Account that is made for students studying outside India so that they can manage their finances with no hassles.
The bank accepts and allows opening of the account with any currency, but maintains the account in Indian rupee.
Here are the features of the ICICI Students Savings Account:
- A minimum balance of Rs. 5000 needs to be maintained.
- 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:
- Rs.250 is charged if the balance is between Rs. 2,500 to Rs. 5,000
- Rs.250 is charged if the balance is less than Rs. 2,500
Kotak Mahindra Bank offers Junior Savings Accounts to children.
- Customers of the Nova variant needs to maintain an average monthly balance of Rs.5,000 or it can be opened as a Zero Balance Account.
- The bank will issue debit cards to children above the age of 10 with a limit of Rs. 5,000 for daily withdrawals.
- Non-maintenance of the balance in the account will incur charges, which range from Rs. 150 to Rs. 300.
- The age of the account holder should be below 18 years of age.
- Kotak Junior also comes with bundled offerings that include Junior Savings Account and Guardian Savings Account, along with Recurring Deposit (RD) or Systematic Investment Plan (SIP).
- 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.
- 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. Additional charges may apply for additional cheque books.
- 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 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 cheque books to students who are above the age of 18.
- Students under the age of 12 can open the account jointly with their parents. Students above 12 years can operate their account solo.
- Banks also issue ATM cards to account holders. The ATM cards for students below the age of 12 are issued in the name of the parents. Students aged above the age of 12 can get the debit card issued in their name.
- The ATM card has no costs in the first year. However, annual maintenance charge of Rs. 70 is charged from the second year yearly.
- Students can make cash remittances of any amount from the branch. However, for non-branches, the amount is fixed at Rs. 10,000 per month. Charges will apply for remittances above the limit of Rs. 10,000.
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.
- One can open Pehla Kadam 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. You can avail the feature of open student bank account online for hassle-free procedures.
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