Student Bank Account
Learning is an indispensable part of a student’s life. Among the most essential things, learning about financial management is necessary. Why not start with a student bank account? As it is one of the foundational aspects of banking. It is helpful as it teaches the habit of savings among students and earns interest on their deposits. It also helps them get familiarised with the banking system.
What exactly is a student bank account?
A student bank account is a specially designed banking product tailored to meet the unique financial needs of students. These accounts provide an excellent opportunity for young individuals to learn about managing their finances responsibly. These accounts often come with various perks and benefits, such as low or zero monthly fees, higher interest rates on savings, and access to online banking services.
Additionally, they typically offer features like contactless payments and mobile apps that make transactions quick and convenient. A student bank account serves as a safe place for students to store their money while providing them with tools to track their spending habits effectively. By encouraging responsible financial behaviour early, these accounts play a crucial role in shaping students into financially competent citizens.
Why do you need to open a student bank account?
A student bank account has various advantages. You can access several student discounts, many of which offer a good interest on savings. One of the key advantages of a savings account is that it pays interest on deposited amounts. The bank pays interest on the account balance, which is usually computed daily or monthly and credited to the account regularly. While savings account interest rates are often lower than those of other investments, they provide a safe and secure way for your money to grow over time.
Students can open a Kotak811 zero balance savings account instantly online. It has no minimum balance commitment. The students can earn interest on the deposits made. It also comes with a free virtual debit card enabling students to shop and pay on online stores. The students can use the Kotak811 account to save for their goals, receive money from side hustles, and more.
5 benefits of a student bank account
Before opening a student account online, you must determine your banking and service requirements to select the best one. Here are some essential characteristics and benefits to consider.
1. Multiple benefits with online student account
These accounts frequently offer the ease of app based banking besides a free debit card. Another feature that makes things easier for students is the mobile app that lets them thoroughly monitor and control their account operations.
2. Reasonable charges
It is advised that you understand the costs and fees levied by the bank for various services you may frequently use, such as money transfers or demand drafts for tuition payments, debit card usage charges, etc. In this regard, a student account permitting free money transfers and general banking services could save you thousands of rupees yearly. A physical debit card may also provide access to ATMs nationwide. However, the number of ATM transactions per month is limited.
3. Future banking relationship
Opening a student account online allows for developing an early relationship with a financial institution. This can be useful when students start earning and have more complex financial needs. Maintaining a relationship with a bank during your academic years can make it easier to access numerous financial services and products in the future, such as mortgages, loans, and investment accounts.
4. Exemptions from fees and reductions
One of the primary benefits of opening a student account online is the possibility of fee waivers and reductions. Many banks offer reduced or no monthly maintenance fees, transaction fees, and minimum balance requirements to students. Such expense-reducing features enable students to manage their budgets better and keep more money in their pockets.
5. Services for students
Documents for opening a student bank account may differ depending on the financial institution. Banks provide a variety of student-focused services, such as budgeting tools, mobile banking apps, and access to financial education materials. These services enable students to track their spending, set financial objectives, and learn healthy money management skills early on.
Considerations for choosing a student savings account
If you are looking to open a student bank account online, consider these aspects to minimise costs related to a student account and maximise savings:
- Interest rates: Check the interest rates for student savings accounts offered by various institutions. Look for accounts with attractive interest rates to let your savings grow over time.
- Fees and charges: Check the fees and charges of the savings account. Search for accounts with low or no monthly maintenance costs, transaction fees, or ATM withdrawal fees. Avoid accounts with high fees that can deplete your funds.
- Requirement of minimum balance: Check to see whether the savings account has a minimum balance requirement. Some accounts may demand you keep a certain minimum balance to avoid costs. If you foresee a fluctuation in your account balance, seek accounts with low or no minimum balance requirements.
You can prefer a Kotak811 zero balance savings account, which can be opened online with your Aadhaar and PAN card details.
Conclusion
Online bank accounts for students offer a variety of advantages that help them in navigating their financial path with greater comfort and convenience. It caters to students' financial requirements, offering everything from no minimum balance requirements, free virtual debit cards, discounts and student-focused services. Students may set a solid basis for their financial future and develop good money management practices by selecting the correct student account early on. Before opening, students must research and analyse several banks to finalise a savings account that best meets their specific needs and preferences.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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