A savings account, as the name implies, is a place to save your funds for future use or emergency purposes. One can come across different variations of savings accounts, which makes it difficult to differentiate between them. Savings accounts for students are accounts that are meant especially for students. To understand how it differs from other variations, it is important to understand the different types of savings accounts and their features.

1. Basic savings account
These are traditional savings accounts, where a person makes regular deposits to save money for later use. They earn interest on their savings and withdraw funds when they require it. Different banks might limit the number of withdrawals per month.

2. Online savings accounts
These types of accounts are quite different from the basic savings accounts for students. They offer a higher rate of interest on the deposits made by account holders. There is almost nil or very low monthly fees. One does not require any minimum balance in these types of accounts. They are ideal for customers who are tech-savvy as most of the banking functions are conducted online. Various banks offer online checking accounts that help customers to make online bill payments and also write checks. One can use debit cards for purchasing and withdrawing cash.

3. Savings account for students
When compared to online banks, savings accounts are generally expensive, especially in situations where the account holders fail to maintain a higher balance in their accounts. While banks charge monthly fees, they offer a very low rate of interest on smaller accounts. Students who are not working and are spending a majority of their time studying find it difficult to maintain a higher balance in their accounts. Various banks, for this reason, offer savings accounts for students, which allows them to avoid fees till the time they get a job and they can also qualify for waivers of monthly fees. Students must check and compare various banking options and look into their terms and conditions in detail, to determine which bank would work best for them. Some banks might convert these types of account for students to a regular account after a certain period. Students should be aware of the change in fees that comes with such conversion.

4. Goal-oriented savings account
While savings accounts for students are what they are, i.e., for students, these types of accounts are mainly used to save money for realizing fixed goals. It can be for purchasing a new home, a new vehicle, for spending on gifts for loved ones or for a long due vacation. Some banks offer savings accounts especially for these types of goals. One does not generally earn more on their savings with exceptions to some banks or credit unions that offer various benefits to the account holders to encourage their habit of regular saving. However, some may achieve their savings goals if a fixed amount is attached to something they regard as valuable.

The above article will help clear out and simplify the difference between savings accounts for students and other forms of savings accounts.