The larger student community has traditionally not been the focus of big banks, because students who are saddled with debt right out of college have little to save. However, in recent times, banks have started taking an interest in this segment of the population as they are sure to drive growth in the competitive markets of today. To attract students, banks are offering several options from low fees and ease of access.

Many online banks have also taken over this space as their costs are significantly reduced once business is transacted over the web. Let’s examine the criteria for cost-effective savings accounts for students:

1. Low fees

The importance of fees can never be overstated as banks earn a large chunk of their revenue through these charges. There are monthly fees, transaction fees, and even withdrawal fees. Students should look for something that suits their needs instead of focusing on a higher APY (Annual Percentage Yield) as the fees could easily wipe out any additional gains that could be made.

2. Ease of access to your funds

Students must be informed about any type of fees that could be levied on them for transferring, viewing, or withdrawing funds. Students must keep in mind the national presence of their banks, as local banks seldom service a customer who was away in another city due to their education. Taking these factors into account, an online bank could also be considered as they easily overcome many of the shortcomings of their traditional brick and mortar counterparts.

3. Savings accounts for students
While many students may aim for higher interest rates, they must consider minimum balances and low balance fees that can be costly for a student.

4. HSBC Bank

HSBC has been consistently delivering and is known for their high yielding accounts and the superiority of their platform, which is easy to use. The sign up procedure is also fairly simple, and interest is earned on the entire amount in the account. The response from the general public has been good and there are no hidden charges or costs that could trouble college students.

5. BBVA Bank

BBVA is one of many online accounts that are available and have some of the best interest rates in the market. A very low minimum is required for their accounts, and they sometimes feature a tiered structure that is beneficial to those who maintain higher balances in their accounts. Funds can be accessed from anywhere, and the 24/7 access with online and mobile banking is very convenient.

6. Marcus by Goldman Sachs

This bank has gone all out to attract customers with a strategic marketing campaign that has got many people talking. They feature some of the best rates in the market and they have very attractive terms as well. This could be a good option for students looking to invest some of their surplus funds. However, some critics claim that the platform isn’t very convenient as there are no physical locations and there is no mobile application for easy banking.