As a student, you probably have a checking account through which you manage your savings and your expenses. Yet, most financial experts recommend that students also open a savings account along with their standard checking account. If you are wondering why, let’s look at the benefits of savings accounts for students.

Enforces savings
The biggest benefit of having a savings account for students is that it makes sure the money is saved no matter what. While a checking account lets you withdraw as much as you need as many times as you want to, a savings account has a cap set at six withdrawals per month. This ensures your money stays in one place and actually grows.

Safe from market fluctuations
There might be people who tell you to try investing in the stock market if you want to earn more money. Yet, the market can fluctuate and you may even end up losing a lot. On the other hand, a savings account works best while you are still studying. It gives you space to freely invest your hard-earned money while letting you learn to manage your finances with no risk of losing any of your funds whatsoever. This is truly one of the benefits of savings accounts for students that stands out.

Funds are truly liquid
If you understand how investing works, you may want to dabble elsewhere when it comes to managing your money and making it grow. Yet, you must remember to keep some of your funds in a regular and easily accessible savings account. This is because many other forms of investments can take several days to reach your account. On the other hand, a savings account lets you withdraw the minute you need the money. So, in times of an emergency, a savings account will prove beneficial for a student.

Better interest than checking accounts
Savings accounts are known to generally have better interest rates than checking accounts. This would make having a savings account an absolute must for making your money grow. The wages that you get paid at your job after school would actually grow better in a savings account. Add this to the fact that savings accounts have restrictions on withdrawal and you are on track to financial freedom. The APY varies between savings accounts so do make sure to research well and choose an account that offers you the best value for your money.

Minimal deposit required
Finally, most savings accounts allow you to open an account with a minimum balance that can even be as low as a few dollars. This works great if you want to take your first steps in finance but do not have the savings just yet. In sharp contrast, many other forms of investment require you to put in a lot more money that could even go into thousands of dollars.