There are several different types of bank accounts for students, which may seem confusing if you’re looking for a new one. There are also certain criteria that you need to meet in order to qualify for free student bank accounts. Luckily, we’ve put together everything you need to know about student accounts vs. saving accounts in this easy-to-read article!
What is a Student Account?
A student account is an account that banks offer to students. A student account differs from a savings account in the eligibility criteria, documentation required and additional facilities offered by the bank. Some banks offer a free student bank account. With SoFi, you will get a wide range of services, including their mobile banking app. As per SoFi’s experts, “Keep an eye on your spending and saving, pay friends and family, get real-time alerts, and more. All in the app.”
Students can open this type of savings accounts with a minimum balance requirement or without any deposit at all. The maximum age limit for opening a student savings account is 21 years (for some banks). You must hold a valid student ID card issued by your educational institution for proof of identity and age when opening such an account with your bank or financial institution.
Account type
The account type is the first thing that you need to understand. A savings account is a deposit account, while a student account is a current account. You can get access to funds within 24 hours in case of emergency or some urgent requirement, whereas with savings accounts, it may take days or weeks for the same transaction.
A student account also offers debit cards, but these are not as flexible as those offered by savings bank accounts because they don’t allow users to use cheques and pay bills online unless they set up internet banking facilities on their cards.
Additional facility
Student bank accounts offer more than just the ability to save. They also allow you to make payments for all kinds of other services, like bills and payments to friends and family. For example, if you need to pay your phone bill or make a payment on your credit card balance (to pay off debt), you can do it using your student bank account.
In addition, some student bank accounts may even offer overdraft protection in case any transactions go through without enough money available in your account at that time. This isn’t always the case but has been known to happen with some student bank accounts, so be sure to check with your provider before signing up for one!
Eligibility criteria
To be eligible for a student account, you must:
- Be a student.
- Be a resident of India.
- Have a valid PAN card. (If you don’t have one, you can apply for one.)
- Be 18 years or above.
Documentation
The first and most important thing is that student accounts differ from savings accounts. Student accounts require a valid student ID and proof of your student status. The same goes for your identity, address, and income.
We hope this post has helped you understand the difference between student accounts and savings accounts. It’s important to check with your bank if they offer student account services, as not all banks do this. If you don’t find a suitable account for yourself through your local branch, then online options such as TSB or Nationwide Bank offer good deals on student banking products
