money matters for students

Student Bank Account- Do You Have One?

Many kids get enough money for their quota of eat-outs and once-in-a-while shopping with buddies and still are left with some money to spare. Piled over months, the amount can be quite impressive.

In fact, some of you would be able to buy your first (or next!) smartphone with your saved money, without having to ask your parents or older siblings (whoever is your best benevolent) a penny for it if you practice saving regularly. If you have taken up a summer job and earned some cash, deposit it in an account unless you are sure you know what the best use of that money is.

Money in the pocket gets spent quicker, and often thoughtlessly, than money in the bank. This is no philosophy. So it's best to keep just what you need for your regular expenses in hand and let the rest remain in the bank. It is the day of ATMs and you can withdraw money whenever you need it.

To cut it short, if you are over 18, you must have a savings account of your own. Banks even let students younger than 18 to open savings account. Here we'll consider student savings account for minors. Others can open regular savings account.

Opening a bank student savings account

This is easy. Minimum age for opening one's own account as a minor is between 12 years and 14 years. Documentation is minimum; all banks require is photo ID card of school/college and perhaps an introduction letter from your principal or HOD. Account opening charge is also low or at times nil.

Don't scout for the best savings bank account; after all you'd be using the account for just basic deposit and withdrawals. We suggest you go for a bank easily accessible to you else a bank whose ATM network is most accessible to you.

Features of student savings account

Minimum balance is nil or maybe a few hundred in a quarter. You can expect features like cheque book and ATM cum debit card with any bank.

Other features vary from bank to bank. Some banks allow free DD facility for college payments. Some of the private banks offer internet banking facility with free funds transfer from parent's account to the student's.

More reasons to have a student saving account

Besides the ones mentioned above, there are still more:

1.  You would need one for government scholarship

The government offers various kinds of scholarships especially in higher education courses to students based on merit, for those belonging to minority groups and so on. You'd need a bank account of your own for getting credit of the amount.

2. Better chances of getting education loan

Though this is not a requirement, certain banks prefer students who have account with them for giving education loan. Now loans are something you should avoid any day, but this is one of the loans worth taking since it's an asset builder.

3. Pay bills online

Through internet banking you can pay your phone bill online. Some private banks even let you recharge your prepaid card account online or through their mobile banking app. How cool is that!

Other things

Since student bank accounts don't have the regular account opening KYC requirements, there would be restrictions on maximum balance and credits (inflows) to the account. If transactions in the account exceed the limit you would be asked to fulfill KYC requirements before further transactions are allowed.

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