As a student, you are already living on a budget. There will be times when you need money for new books, a new course, an online assignment, sick days, and a little hanging out with friends. For these times, and more, you need to save money. These savings, if adequate, can also help you clear your student loan faster.

Why you should have a savings account

Here, we will discuss a few reasons why every student should get a savings account:

• It will get you in the saving game
  As a college student, you might be getting some funds as an allowance from your family, or you may be earning a salary from a part-time job. Wherever the money is coming from, it has to be used mindfully. You cannot spend your money in two days and then be empty-handed. So, if you have a savings account, it will give you a place to keep all your extra money. We all know the money in the bank stays with us longer than the cash in hand. So, over-time, you will start saving more and more.

• It is a safe place to park your funds
  Your funds in the savings account are safely stacked unless you withdraw them or pay them to someone. However, it is a liquid account. It implies that you can withdraw only a certain amount of money per month. You can take out cash for your expenses, and then throughout the month, enjoy an interest in the remaining amount. Thus, in this manner, the money that you saved keeps growing over time.

• You can avail of some additional value-added services
  Many banks with which you open your savings account will give you some benefits and value-added services. Many of them offer discounts, reward points, or cashback on your purchases and debit card. So, when you spend with your card, you can save more with every purchase.
• It is easily accessible
  The money that is there in your savings account can be accessed anytime you need it through an automated teller machine (ATM). All you have to do is swipe your debit card, hit a few buttons, and then the money will be in your hand. It is unfortunately not right for the other investments which you make. Even the most liquid investments will take some time for you to receive the funds. It is the reason why a savings account can be your emergency fund. Anytime you face an emergency, you can access your funds and withdraw from your savings. In just a few brief moments, you will have the cash you need to deal with the urgent problem. This does not work for all the other types of investments.

So, these are a few reasons why every student should get a savings account.