Top 10 Best Savings Accounts for College Students

I believe that you simply want to know about the Top 10 Best Savings Accounts for College Students. Well, I have given some reviews about them below, so if you would love to know about them, then you will certainly have to keep on reading.

Top 10 Best Savings Accounts for College Students

But before I show you this, I would like you to know about the factors first, so you can then be able to know what you are going for.

Top 10 Best Savings Accounts for College Students

There are a few options for opening a savings account, and in this article, I am going to shortlist 10 of the best savings accounts that are available to college students based on three primary credentials.

First, we are going to look at security. You want to be sure that your money is safe and not touched by hackers or people who do not belong in your account.

Second, we are going to look at APY. This number simply represents how much your money is going to work for you while sitting in your savings account.

And finally, we are going to look at the minimum deposit. As a college student, you may not have a lot of money to put away at first, so we will want to make sure the opening fees are affordable for you.

10 Best Savings Accounts for College Students

So, now that you are now aware of three important factors to consider when you are setting up a savings account, let us take a look at some of the best options out there.

  • Bank of America

Pros:

  • Available everywhere.
  • Super secure.

Cons:

  • Low APY of only 0.01% – 0.05%.
  • $100 minimum deposit.

Bank of America’s “Advantage Savings Account” is simply an excellent option for those people who are concerned about the safety of their money.

On top of its amazing security, there are also a lot of ATMs for you to easily access your money. A minimum deposit of about $100 might not seem like much, but you then need to be prepared to give that money up entirely for the time being (i.e., keep it in your savings).

With a lower APY range (0.01% – 0.05%), this type of savings account would simply not be considered the most profitable option.

This is also a great option if you are looking for something secure and convenient. However, you will then have to put down a significant deposit, and you will probably not see much return from the APY.

  • Capital One Financial Corp

Pros:

  • No minimum deposit.
  • Flexible age requirement.
  • Paper-free.

Cons:

  • Low APY of 0.1%.

Capital One is also one of the front runners in online banking. With great online infrastructure, this bank simply claims to be paper-free.

It’s also important to save from a young age, and the Capital One Money account simply helps you do just that. You can even open this account at the age of 8 without making a considerable deposit and even keep it after you turn 18.

The downside of this savings account is its low APY of 0.1%. However, compared to the Bank of America, this rate is not all that bad.

This account is also great if you do not have much money for an initial deposit or you want to get started saving early.

  • HSBC

Pros:

  • Easy to use.
  • $1 minimum deposit.

Cons:

  • Low APY of 0.15%.

Are you simply starting to see a trend? Bigger banks do not always care about smaller clients, so the APY is never really all that impressive. That said, HSBC’s rate is then much more palpable at 0.15%.

So, what does HSBC Direct Savings do to make up for this low APY? Well, you do not need a high minimum deposit to be able to get started. With just $1, you can simply open your own savings account.

Perhaps the best part about HSBC is how easy it is for you to work with them. Their platform is super user-friendly, unlike a lot of bigger banking conglomerates.

  • American Express

Pros:

  • Surprisingly high APY of 0.4%.
  • No minimum deposit.

Cons:

  • No other banking functions.

With a whopping APY of 0.4%, American Express’s rate is even more than double what the first few banks on this list offer. On top of that, there is also no minimum deposit.

The downside? This is a one-trick savings account. You cannot do anything else with your account—that means no cashing checks. If you are looking for something simple, however, I suggest checking this one out.

  • Radius Bank

Pros:

  • All-in-one option

Cons:

  • Low APY of 0.15%.
  • $100 Minimum Deposit.

If you are simply looking to have one bank account for both checking and saving, the Radius Rewards Checking Account is a fabulous option that is tailor-made for you.

While they do not offer an option specifically for college students, this seems to cover all the bases. It is also the perfect bundle for a checking and savings account.

Because this account is catered to checking, the APY is also relatively small at 0.15%. You will also need to invest about $100 to open your account.

  • Marcus by Goldman Sachs

Pros:

  • $1 minimum deposit.
  • Great APY of 0.5%.

Cons:

  • online only.

Goldman Sachs is also a premier financial institution, so it only makes sense that their APY of 0.5% is the highest you will be able to find. Thus, if you are focused on the profitability factor, this account would then be the way to go.

In addition to their high APY, Goldman Sachs has a low minimum deposit of about $1. This account is also a win-win if you do not have much to invest but want to see a higher return than other big banking accounts.

One thing you should keep in mind is that this savings account is online only. If you like to bank in person, this might be an adjustment. But if you are used to doing all your banking digitally, this might be the perfect option for you.

  • Discover Bank

Pros:

  • Decent APY of 0.4%.
  • No minimum deposit.

Cons:

  • Online only

Discover Bank is also a great fit for college students. There is simply no minimum deposit to set up a savings account, and also their APY is on the higher end at 0.4%. Additionally, Discover offers several online banking benefits.

Once again, the downside to this savings account is that you can only bank online.

Truth be told, this account is also very similar to Goldman Sachs. If you are looking for the highest possible APY, go with Goldman Sachs, especially since the minimum deposit is only $1.

However, Discover is simply another viable option, should you choose to open an account with them.

  • CIT Bank

Pros:

  • Decent APY of 0.4%.
  • Encourages saving.

Cons:

  • $100 minimum deposit.

CIT Bank is simply the perfect option for individuals who struggle to save. The APY is the same as the previous at 0.4%, but you will then need to deposit $100 every month to keep that rate.

Most people might even consider this a downside, but it’s actually an excellent strategy to be able to keep students invested in saving money. If you want your savings account to grow, you will have to keep building that habit to simply get the most out of your money.

If you want to get serious about saving and also have the funds to do so, look into this account.

  • Ally

Pros:

  • Great APY of 0.5%.
  • No minimum deposit.
  • 24/7 customer support.

Cons:

  • online only.

Ally High Yield Savings Account is simply a carbon copy of Marcus by Goldman Sachs with the same APY of 0.5% and also has no minimum deposit requirement.

Similarly, to others on this list, Ally is just online only. However, with their online banking, you simply have access to customer service 24/7. If you run into any problems, you will always have help.

  • Chime

Pros:

  • Great APY of 0.5%.
  • No minimum deposit.
  • Easy saving.

Cons: 

  • A checking account is required.
  • online only.

Last but not least is Chime. It simply offers the same impressive APY of 0.5% and does not even require you to make a sizable investment to start.

However, it is simply online only, and it does not come with 24/7 customer support.

You can simply either store all your spare change from your debit card on your account or add a percentage of your income to your account. The whole process is just automated, so you do not need to go out of your way to do this.

The caveat here is that you simply need to open a checking account to then let Chime keep better track of your finances.

FAQs

How much should a college student have in savings?

If you are on top of your budget and also not overspending, Steinberg recommends college students keep around one to two months’ worth of their income in check and also put everything else in a high-yield savings account or a retirement fund.

Should I have a savings account as a college student?

For college students that have already lived on a tight budget, a savings account is just a must. Maintaining an emergency fund will also help you through those unexpected situations in life, like car repairs or medical bills. You never want to rely on high-interest credit cards or payday loans to simply get you out of financial trouble.

How many bank accounts should a student have?

An expert recommends having four bank accounts for budgeting and also building wealth. Open two checking accounts, one for bills and then one for spending money. Have a savings account for your emergency fund, then a second account for other savings goals.

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