Types of Student Savings Accounts
You'd think the hardest part about saving should be the saving, and deciding where to put your money would be a relative breeze. But then, what would banks do without all their fine print? Here are the major student savings account types:
- Instant access accounts
- Intro rate accounts
- Online accounts
- Minimum deposit accounts
- Minimum balance accounts
- Term deposits
PROS: Flexibility of moving money to your student transaction account.
CONS: Lower standard interest rates.
PERFECT MATCH: The Disorganised.
PROS: Ooh, we love a higher introductory rate!
CONS: Ugh, we tire of this lower standard rate.
PERFECT MATCH: The Commitment-phobe.
PROS: Typically fee free; easy to access.
CONS: No human contact.
PERFECT MATCH: The Tech-savvy Misanthropist.
PROS: High ongoing interest rates; regulated student savings.
CONS: Less or no interest if you miss a payment; typically no withdrawals.
PERFECT MATCH: The Accountant.
PROS: High ongoing interest rates; typically some flexibility on withdrawals above minimum balance.
CONS: Less or no interest if your balance dips.
PERFECT MATCH: The Aspirational.
*Note that you'll also find combinations of these student account types, such as the Commitment-phobic misanthropist (or Online Instant Access Account).
Yes okay, student term deposits are actually a different family — your savings-in-law. But let's check em out all the same, to see whose genes rule supreme...