These days, students have started depositing their pocket money or the money they earn from a part-time job in a savings account. A savings account is one way to manage your money that helps you meet your emergency needs. However, it also means that your money is under the control of a bank. By examining the below-mentioned pros and cons of savings accounts for students, you will be able to make an informed decision.

Funds are readily available
Most of the banks allow you to access your money through an online mode, any time you wish to. This way, you have a significant amount of money readily available in case of emergency situations. Many of the banks also let you link your savings account with other accounts for easy transfer of funds.

You can open with little amount
When it comes to comparing pros and cons of savings accounts for students, this is a notable benefit. As the savings account can be started with very little money and hence, it gives you an opportunity to save your money even when you do not have much to begin with. However, the amount required to start a savings account varies across banks, so you have to look for the one that best meets your needs.

Saving accounts are insured
While searching for a bank to open your savings account, make sure to opt for the one that is insured by an independent federal agency. This means that in case of theft or if the bank fails, the agency will reimburse the losses.

Your money is kept safe
During your analysis of pros and cons of savings accounts for students, you should definitely consider this benefit. Since your money is monitored and stored by the bank, it increases your personal safety. Storing cash in your house not only makes you a target for potential robbery, but you can also lose all your money during a natural disaster. The bank account keeps you and your money completely safe.

Withdrawal limits on savings account
You can easily transfer money from one account to another, but there are certain limits on the number and the kind of withdrawal you can make. Usually, you might not be allowed to make more than six transfers or withdrawals during a monthly calendar.

You may require to carry a minimum amount
While analyzing the pros and cons of savings accounts for students, you must keep this point in mind. Most of the institutions require you to maintain some balance in your account. If your savings fall below that certain amount, then a high fee is charged on a monthly basis until you restore the amount.

Easy access means more temptation to spend
When you have high-level of accessibility, you feel tempted to spend your money. This is why many people prefer other savings accounts such as CD or Certificate of deposit to avoid the temptation to withdraw money.

By considering and closely analyzing the above-mentioned pros and cons of savings accounts for students, you will be able to determine whether starting a savings account is a good decision for you or not.