Finding the Best Student Savings Account Features

A student bank account is a checking or savings account offered to students by banks, credit unions, or other financial institutions. These accounts often come with reduced fees and special features tailored to students' financial needs. A checking or savings account can be a safe and convenient place to deposit money, including financial aid, that you don't intend to spend right away. With a savings account, you can earn interest on your deposits. With a checking account, you can write checks, use a debit card to make purchases and use ATMs to deposit or withdraw cash or deposit checks.

Most checking and savings accounts offer online banking and a mobile app, which make it easy to check your account balances, deposit checks, make payments and send money to other people. If you have a checking account and a savings account, you can link the two accounts through your bank and transfer funds electronically from one account to the other.

Pros and Cons of Student Bank Accounts

Bank accounts designed for students often include features that can benefit younger customers, especially those who may be new to banking or have smaller balances. However, these accounts can sometimes be relatively basic in what they offer, and that might not appeal to students who expect more out of their banking experience.

Pros

Low or no monthly fees. Most student accounts are either free or come with a small monthly fee that is waived for those in school or under a certain age. Plenty of banks and credit unions offer free bank accounts for students, or they will waive the monthly fee while you're in school or within a certain age range.
Low or no minimums. Many banks don't require students to make an initial deposit when they open an account. Many banks don't require students to make an initial deposit when they open an account. They also don't usually require students to keep their balance above a specific level to avoid a fee. Some banks will require you to make an initial deposit when you open an account. The deposit is typically no larger than $25. The is no minimum deposit or balance requirement for the Chase College Checking account.

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ATM fee reimbursement. Because some students may be limited in their access to ATMs, some student bank accounts will offer rebates or reimbursements for fees incurred using out-of-network ATMs. The Navy Federal account has no monthly fee or minimum requirements, and it pays 0.05% APY. America's largest credit union offers this account for ages 14 to 24, and it comes with up to $10 in out-of-network ATM rebates per month.
Money management tools. Some student accounts come with digital financial features such as budgeting tools that can help customers manage and monitor their finances.

Cons

Don't pay interest. Many student accounts don't pay any interest on deposits, and those that do usually offer low yields.
Eligibility restrictions. You may have to be within a certain age range to qualify for a student account, while other accounts require that you provide evidence that you're attending school. Eligibility requirements. Some student accounts are limited to customers of certain ages or who are currently attending school. Make sure you meet those requirements.
Conversions. Student accounts sometimes automatically convert to a different type of account at the financial institution when the account holder reaches a certain age.

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Essential Features to Look For

When choosing a student bank account, several features can make managing finances easier and more affordable.

Monthly Fee: Plenty of banks and credit unions offer free bank accounts for students, or they will waive the monthly fee while you're in school or within a certain age range. The best student bank accounts waive the monthly maintenance fee while you’re in school, helping you save on expenses when you have little to no income. Look for banks or credit unions with in-network ATMs on or near your campus or residence.
Minimum Requirements: Some banks will require you to make an initial deposit when you open an account. The deposit is typically no larger than $25. Many banks don't require students to make an initial deposit when they open an account. They also don't usually require students to keep their balance above a specific level to avoid a fee. As a college student, you may also struggle to maintain a balance in your account. No Minimum Balance Requirement: As a college student, you may also struggle to maintain a balance in your account.
Overdraft Fee: It's smart to shop for a checking account with low or no overdraft protection fees, but keep in mind that you can also avoid these fees entirely by not signing up for overdraft protection.
Debit Card: Some student accounts come with a debit card for easy access to funds.
ATM Locations: Look for banks or credit unions with in-network ATMs on or near your campus or residence. You don't necessarily need to limit your options to banks and credit unions that have ATMs on or near your campus. That's because many banks and credit unions are part of ATM networks or will reimburse some or all of the fees that you might be charged to use other banks' ATMs.
Branch Locations: Traditional banks offer both physical branch locations and online banking services. A branch location where you can walk in and talk face-to-face with someone can be helpful if you're new to banking, have questions about your accounts, need help with banking services or need to deposit cash into your account.
Mobile Banking: Most banks have fairly robust apps and online sites that allow you to perform tasks such as checking your balance, depositing checks and transferring money. Excellent Online Access: As a busy student with a full schedule of classes, being able to manage your money online through a mobile app is crucial. Chime was launched with a mobile-first banking approach, and its mobile banking and zero maintenance fees make it a great option for students, allowing you to enjoy free mobile banking on the go. Their user-friendly mobile banking platform has a range of features that make it easy to manage your money, such as immediate alerts for every transaction. You can also link your Chime Visa® Debit Card to mobile payment apps like Google Pay or Apple Pay.
Integration with Digital Wallets: If you plan to make purchases from your phone rather than carrying around your debit card, you'll want to make sure that the bank's card's work with your digital wallet of choice, whether that is Apple Pay, Google Pay or something else.

Top Student Bank Account Options

Capital One 360 Checking: Best for No Fees or Minimums. While not a student bank account, Capital One's flagship checking account has a whole lot of features that will appeal to students. The account has no fees or minimum requirements, and Capital One boasts a network of more than 70,000 ATMs. You can open a Capital One Money account from as young as 8 years. For this account, the bank doesn’t charge a maintenance fee or have a minimum balance requirement. You also get a debit card that you can use fee-free at more than 70,000 ATMs nationwide. Parents also love Capital One Money, as they encourage joint accounts where parents can keep track of all their kids’ transactions.
Chase College Checking: The is no minimum deposit or balance requirement for the Chase College Checking account. Chase is offering a $125 bonus when you open a new account and complete 10 qualifying transactions. The account has a $15 monthly fee that is waived while you are in school for up to five years. Chase offers a college checking account for college students between 17 and 24 years of age. Customers who open an account during college won’t need to pay any monthly maintenance fees for the first five years after opening the account. Students can also enjoy a $125 sign-up bonus when they open their account, though you will need to make 10 transactions within the first two months to qualify. Fees: No monthly fees while enrolled in college or a vocational, technical or trade school up to the graduation date provided at account opening (five years maximum) for students 17-24 years old. After graduation, you’ll be subject to a monthly maintenance fee of $12, but that will be waived if you maintain a balance of $1,500.
Navy Federal Free Campus Checking: Best for ATM Rebates. America's largest credit union offers this account for ages 14 to 24, and it comes with up to $10 in out-of-network ATM rebates per month. The Navy Federal account has no monthly fee or minimum requirements, and it pays 0.05% APY. While Navy Federal only has about 350 branches worldwide, it has a network of 30,000 ATMs across the country. Navy Federal's mobile app gets great scores in the Apple Store, but lukewarm reviews on Google Play.
Bank of America Advantage SafeBalance Banking: This Bank of America student bank account allows teens as young as 16 to be sole account holders. The $4.95 monthly fee is waived for anyone under 25. There's a $25 minimum deposit required to open the account. Bank of America’s Advantage Banking Program waives college students’ monthly account maintenance fees until they turn 25. You’ll also have access to Bank of America’s large network of 16,000 surcharge-free ATMs across the USA. Another bonus is the bank’s “Keep the Change” feature, which automatically rounds up debit card purchases to the nearest dollar and puts the difference into your savings. Once your child needs to regularly deposit money into the account, such as when they start a job or need direct deposit, you can graduate them to a Bank of America Advantage SafeBalance Banking® account. The account number and debit card number will stay the same. Both accounts are automatically set to the Decline All overdraft setting and cannot be changed. SafeBalance® for Family Banking allows for one parent owner and one child on an account.
Discover Cashback Debit: Discover doesn't charge a monthly fee, and it boasts more than 60,000 in-network ATMs. Discover Cashback isn’t specially designed for students, but it’s an excellent choice for students over 18 who want to enjoy all the benefits of an account with a debit card. There’s no minimum balance, zero monthly maintenance fees, zero overdraft fees, and no hidden costs. Best of all, you keep these perks when you’re no longer a student, making this the best choice if you don’t want to have to change banks after you graduate. Though Discover has fee-free withdrawals at over 60,000 ATMs across the country, they don’t have any physical branches, so you have to contact customer support via phone or text.

Exploring Savings Account Options

Student savings accounts are meant to help those in school grow their increasing income long term and learn about financial responsibility. To ensure that you find the best savings account for the student in your life, we’ve laid out the top student savings accounts for prospective account holders looking for specific account benefits.

Top Savings Accounts

Bank	APY	Min. Deposit	Highlights
Synchrony	3.50%	$0	No minimum to open, basic savings option
Discover® Bank	3.30%	$0	Easy-to-use interface, good APY
Affirm	3.20%	$0	Fantastic APY, simple mobile app
Ally Bank	3.20%	$0	Well-rated online banking platforms, forgiving fee structure
Digital Federal Credit Union	5.00%	$5	High introductory APY, $5 minimum to open
Varo Bank	5.00%	$0	Potential to earn higher APY, no monthly fees
EverBank	4.05%	$0	Great interest rate structure, strong online bank
LendingClub Banking	4.00%	$0	Great APY, no monthly fees
Chime	0.75%	$0	Simple, basic online experience, no monthly fees
CIT Bank	0.40%	$100	Boasts features that encourage saving, no monthly fees

Highlighted Savings Accounts

Synchrony High Yield Savings: This account offers a solid 3.80% APY on all balances with no minimum requirements. There are no monthly maintenance fees, and the account can be opened with any amount of money. Synchrony doesn’t charge ATM withdrawal fees, though this account does come with up to $5 in domestic ATM fee reimbursements. Customers can contact a representative online or over the phone.
Discover® Online Savings Account: This account features a solid interest rate of 3.40%. Interest on this account compounds daily. There are no monthly fees and no minimum deposit. Discover is a mobile- and online-only bank with no branch locations. The bank has a highly rated mobile app, user-friendly online dashboard and 24/7 customer service.
Affirm Savings Account: This account offers a fantastic 3.60% APY. There are no balance restrictions on this interest rate, so it applies to everything you deposit. This account doesn’t require a minimum deposit, and you won’t be on the hook for any monthly fees. Affirm is a totally online company whose services are based around its mobile app.

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Ally Bank Online Savings Account: At Ally Bank, you can get a solid 3.30% APY, with interest that compounds daily. You will also avoid monthly fees. One of the best rated apps in finance on both the Apple and Android stores, Ally boasts a wide range of benefits. The ATM locator will help you find a fee-free ATM in your area.
Digital Federal Credit Union Primary Savings: The first $1,000 you deposit in a Digital Federal Credit Union (DCU) Primary Savings account will earn interest at a 5.00% APY. Account holders can do their banking through any of the over 5,000 locations where it offers shared banking.
Varo Savings Account: The Varo Savings Account has a 5.00% APY. For this account, Varo does not require a minimum opening deposit, nor are there monthly maintenance fees. You can also gain access to a higher APY of 5.00% by meeting the following requirements during each qualifying period: Make sure you close out the month with a positive balance in your Varo accounts Receive total direct deposits of $1,000 or more each qualifying period The 5.00% APY is only on balances up to $5,000. Balances over that will receive the base APY of 2.50%. Varo's services are entirely online.
EverBank Performance(SM) Savings: This online savings account does not require a minimum balance to open, nor does it charge any monthly maintenance fees. And because this account is now a Yield Pledge® product, the bank makes a promise to guarantee a yield in the top 5% of competitive accounts. EverBank also reimburses ATM fees for accounts with an average daily balance of at least $5,000. For accounts with less than this, the bank will reimburse up to $15 in monthly ATM fees.
LendingClub LevelUp Savings: Students who open LendingClub’s LevelUp Savings Account get access to one of the highest rates on the market. With a 4.00% APY, the High-Yield Savings Account offers substantial room for growth. And with no monthly fees, you don’t have to worry about additional charges eating through your savings. The LevelUp Savings Account also comes with a free debit card. The LevelUp Savings Account doesn't require a minimum deposit to open.
Chime Savings Account: Chime is an entirely online financial technology company. Its services are extremely easy to use and simple. You'll also have access to a savings APY of 1.00%. You won't be on the hook for any monthly minimums or monthly fees, and you don't need a minimum to open an account. The main caveat when it comes to opening a Chime Savings Account is the fact that you'll need to first open a Chime Spending Account, Chime's version of a checking account.
CIT Bank Savings Builder Account: The CIT Bank Savings Builder Account offers the potential of a high APY, though you'll need to prioritize saving to reach the top rate. In order to earn its 1.00% APY, you’ll need to either maintain a $25,000 balance or make monthly $100 deposits. To become a Savings Builder Account holder, you must deposit at least $100 in your account at opening. CIT Bank has a large online presence, so you can manage your account online, on your phone or by calling customer service.

Considerations for High School Students

Student bank accounts aren't only for college students. In fact, high schoolers can also open student accounts jointly with a parent. Accounts for these younger students are sometimes called teen accounts or youth accounts. High school checking and savings accounts typically include parental controls and monitoring so that parents or guardians can keep an eye on their teen's spending habits. "High school students are highly encouraged to seek an account that is joint with a parent so they can begin to learn the process of managing money, says Marlowe.

Additional Tips for Students

Read the Fine Print: Reading the fine print for a bank account might seem like additional homework that you don't want to do. Still, it's smart to read the disclosure statements that will come with your new account. These legal documents explain how your account works, what the rules are and what fees you might be charged.
Consider a Local Bank or Credit Union: A good bank account for students shouldn't charge fees and should be with a local bank or credit union that understands what local students want, says Adam Marlowe, chief strategy officer at Georgia United Credit Union. He adds that some schools offer discounts, tickets, cheaper books or other perks to students who use a card from an affiliated bank on campus.
Opening a Student Bank Account: Opening a student bank account is essentially the same as opening a regular bank account, with the one key difference that you’ll need to prove that you’re a student. The exact requirements depend on the bank, but typically you’ll need to show your student ID, college acceptance letter, or academic transcripts. When you go to the branch, be sure to take your ID, proof of enrollment, and the minimum deposit amount, if the bank has this requirement, in the form of cash or a check written to you.
Conversion to Standard Account: Typically, your student account will be converted to a standard account once you graduate or reach a certain age limit. In some cases, you may need to open a new account and transfer your balance across. When your student account converts to a standard account, check your bank's rules so you can avoid being hit with a monthly service fee. Many banks will waive the fee if you maintain a minimum balance or have regular direct deposits. If your bank's standard checking account comes with too many fees that are difficult to avoid, consider changing banks. There are many options for free checking.

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