Best Savings Accounts for College Students

As a college student, you usually have limited income and expenses, making it important to find a student savings account that offers low fees, good interest rates, and great bonuses. You also may not have a regular income so don’t want a savings account that will penalize you if you don’t make minimum monthly deposits. Furthermore, saving while in college can be difficult, so you want to maximize your savings as much as possible.

Thankfully, many financial institutions offer specific student savings accounts that are structured differently and offer extra features as well as bonuses to help students save. The best saving accounts for students allow lower balances without incurring penalties to ensure students can save whatever they can, however small. So, a college student should choose a savings account offering these features, whether it is branded as a student account or not.

We’ve tracked down the best savings accounts for college students in terms of fees, minimum deposit requirements, accessibility, bonuses, and more, offered by the best banks for college students.

Here are the best savings accounts for college students:

1. Synchrony Bank High Yield Savings: Best Overall

The High Yield Savings account from Synchrony Bank offers a competitive interest rate to help you increase your savings as quickly as possible. You’ll also enjoy the convenience of internet banking and easy access to your money all day or night with this digital account. Unlike traditional savings accounts, there are no minimum deposit requirements or monthly maintenance costs, making this a great alternative for students with a range of savings objectives.

Additionally, Synchrony Bank is FDIC-insured, so you’ll have peace of mind that your money is secure.

• APY: 3%
• Bonus: $150 to $200
• Minimum Deposit: $0
• Number of Yearly Withdrawals Allowed: Unlimited

Pros and Cons

With this savings account from Synchrony Bank, you can easily manage your accounts, monitor account activity, transfer payments, and keep track of your balance through online and mobile banking. 

Pros

• High APY rate
• No monthly fee
• Easy-to-navigate account

Cons

• Completely online: the bank has no physical branches

2. PNC Virtual Wallet: Best for Traditional Savings

PNC Virtual Wallet is an online savings account that is backed by PNC Bank’s strong reputation and offers smart solutions for customers to manage their money and track their spending. It offers a wide range of features like automatic savings options, budgeting tools, and the ability to view all your accounts on one platform.

PNC Virtual Wallet is made up of three basic elements: Spend, an everyday checking account, a Reserve account for short-term savings, and a growth account for future long-term savings, giving you as many options as possible to manage your finances and meet your savings goals. It’s more than a simple savings account: you can use the reserve and growth accounts as primary and secondary overdraft protection accounts.

• APY: 0.01%
• Bonus: $50 bonus on $500 or more monthly direct deposits
• Minimum Deposit: $0
• Number of Yearly Withdrawals Allowed: Limited

Pros and Cons

This savings account is a great option if you’re looking for a traditional account with advanced features you can manage from a single platform.

Pros

• Access to debit cards
• Mobile applications available
• Easy to monitor your savings and expenses

Cons

• Monthly fee

3. Capital One 360: Best Mobile App

The Capital One mobile app is a market leader which makes it a key differentiating factor among Capital One’s competitors. You can easily open an account in just five minutes and then manage all your banking using this user-friendly application, helping students keep track of spending and better manage their savings.

Balances are FDIC-insured, keeping your savings secure. According to the 2022 JD Power Online Banking Satisfaction Study, The Capital One mobile app had the highest levels of customer satisfaction among all national banks.

• APY: 3.4%
• Bonus: None
• Minimum Deposit: $0
• Number of Yearly Withdrawals Allowed: Maximum five withdrawals allowed per month before you’ll be charged an excessive withdrawal fee

Pros and Cons

In addition to its excellent app, this savings account for students stands out because it makes it easy for students to save money for different goals.

Pros

• 24/7 live chat option
• Competitive APY
• Easy to maintain savings
• No monthly fee
• No minimum deposit required

Cons

• Limited Access to customer service via phone
• No bonuses are currently offered

4. Marcus Online Savings: Best for High-Interest Rates

Marcus gets its name from Marcus Goldman: it’s an online branch of the famous Goldman Sachs bank that offers its customers several savings and personal loan options.

It is essentially high-yield online savings account with competitive rates and a wide range of services and exemptions, with exceptionally high rates for students, even on smaller deposits.

• APY: 3.5%
• Bonus: $100 on a deposit of $10,000 or more
• Minimum Deposit: $0
• Number of Yearly Withdrawals Allowed: No limit

Pros and Cons

Backed by one of the biggest financial institutions in the U.S., this savings account offers very competitive interest rates, but its services are purely online

Pros

• APY: 3.5%
• Bonus: $100 on a deposit of $10,000 or more
• Minimum Deposit: $0
• Number of Yearly Withdrawals Allowed: No limit

Cons

• No access to ATMs or an official branch

5. Ally High Yield Savings Account: Best for Tracking your Savings

This high-yield savings account from Ally Bank allows students to save and grow their money with a competitive interest rate. You can easily manage your finances from anywhere, any time, with this completely digital account. Additionally, there’s no minimum deposit requirement and no monthly maintenance costs, making it easier to save while you’re in school.

• APY: 3.4%
• Bonus: 1% cash bonus
• Minimum Deposit: $0
• Number of Yearly Withdrawals Allowed: 6 per statement cycle

Pros and Cons

Ally Bank offers round-the-clock customer service and is FDIC-insured. Its high-yield savings account is a great choice for students not only because of its high-interest rate, but also its user-friendly online platform for great accessibility.

Pros

• High APY
• No monthly services
• Savings bucket to track savings goals
• No minimum opening deposit
• Surprise savings transfer to help you save extra money

Cons

• No physical locations
• No way to deposit cash

Our Methodology for Choosing the Best Savings Accounts

When choosing the best savings accounts for college students, we looked at a range of factors that considered the unique needs of those who are still in school. For example, when you’re studying, you probably don’t have a regular income, so you need a savings account that won’t penalize you for not making monthly deposits. When you’re on a tight budget, fees can make a big difference, so we took these into account also.

Of course, we also considered critical aspects of any savings account, such as interest rates and security.

The key factors we used to choose the best saving accounts for students were:

• Interest rates: How much you earn on your savings account balance is based on the interest rate, so we looked for accounts with the most competitive interest rates.
• Minimum deposit requirements: We prioritized savings accounts that didn’t ask for a minimum monthly deposit, and preferably no minimum deposit to open the account.
• Fees: We also identified accounts with minimal or no monthly maintenance, overdraft, and transfer fees to help students manage their expenses and maximize their savings.
• Accessibility: As a student, it’s even more important to have easy access to your money, given hectic classes and work schedules. Therefore, we considered the bank’s online and mobile banking capabilities, ATM network, and customer support.
• Safety and security: We also know that security is essential, so we only included banks that are FDIC-insured and have robust security mechanisms in place to safeguard your cash.
• Bonus: When you’re starting out and building your savings, even small bonuses can make a difference to your savings yields, so we looked for banks offering great bonuses.

The best savings accounts for students also offer extra services and features, such as budgeting tools or automated savings options. Of course, everyone has their own needs and unique savings goals. Therefore, it’s important to weigh these factors according to your own situation, as well as consider any others that will help you meet your financial objectives, in order to choose the best account for you.

The Bottom Line

Savings can be a big part of paying for college, whether through a savings plan like a 529 account, or a high-yield savings account. While most undergraduate students at least rely on their parent’s savings to get them to college, once they’re in school, it’s time to start saving for themselves.

Building up savings can be challenging for a struggling student with limited income, but starting your savings journey now, however modest, can set up well for the future. Not only will your savings grow over time, but the earlier you start the better, you’ll learn important financial management habits that will take you a long way.

Choosing one of the best savings accounts for college students will help you to minimize your expenses and maximize your savings, and ultimately meet your financial goals.

Frequently Asked Questions (FAQs)

Should college students have a savings account?

It’s important for everyone to have a savings account, and college is a great place to start. It will help you learn how to budget, develop money management skills, and prepare for future costs like student loan repayments, rent, and other living expenses. Additionally, it’ll give you the financial security and peace of mind of having an emergency fund in case of unforeseen circumstances, not to mention smooth the transition from student life to being a financially responsible adult. 

Are online savings accounts safe? 

Generally, savings accounts administered by institutions that are insured by the FDIC are secure. If a bank collapses, the depositors’ money is protected up to the maximum insurance limit thanks to insurance provided by the FDIC (Federal Deposit Insurance Corporation). That’s why it’s so crucial to ensure the institution is FDIC-insured before setting up any savings account. Additionally, online banking security features like multi-factor authentication, encryption, and secure login can help to protect your money from malicious actors online.

Are savings accounts worth it?

Yes, savings accounts are a valuable way to not only store but also grow your money, typically paying higher interest rates than checking accounts. Additionally, they allow you to save money for long-term objectives, while giving you easy access to your cash if you need it, unlike some other types of investments.

Do student savings accounts have fees?

College students’ savings accounts may have monthly maintenance fees and transaction fees, among other expenses. However, there are a number of student savings accounts offering unlimited transactions and no monthly maintenance fees, so be sure to do your research before opening an account.

Do I have to be 18 to open a student savings account?

The majority of student savings accounts don’t have any age restrictions, but some banks require you to be at least 18 years old to open an account.