There are two types of bank accounts that students can open: one is a checking account and the other a savings account. In this article, we look at the benefits of savings accounts for students and the benefits of checking accounts. This will help in deciding which account to open.

What is a Checking Bank Account?
Before understanding the benefits of savings accounts for students and checking accounts, we need to understand what these accounts are. A checking account is used for carrying out transactions; it is an account where you deposit some money and transact on it. You can use this account unlimited times for carrying out all kinds of transactions. The transactions include withdrawing money from your account through check or at an ATM. It also includes using electronic transfers of money through Internet banking. While other types of bank accounts, like savings accounts, restricts the number of transactions you can carry out, there are no restrictions on using a checking bank account.

What is a Savings Bank Account?
This is an account opened at a bank to encourage people to save money. The money you deposit in this account will earn interest. The interest is paid as interest rates that are decided from time to time. This is a good way to make money on idle cash that you can secure by keeping it in the account. Savings accounts allow customers to withdraw money through checks, ATM, and online transactions. There are, however, restrictions on the number of times free transactions can be carried out. This is because the account is intended to be used to earn money with a transaction being done only when needed.

Bank Accounts for Students
It is important for students to have their own bank accounts, especially when they start attending college. The reason is that a student would be independent and needs money for various purposes. Holding cash can be risky and it also tempts students to spend more money than needed. Having a bank account ensures cash is safe in the account. It encourages thrift among the student and promotes the concept of saving money, which will come in handy when they start working. Bank accounts allow students to transact using the account. This will help them to pay fees and use the account for their expenses.

Checking vs Savings Account
A savings account earns interest on the money deposited, while a checking account does not. Moreover, a savings account has limits on the number of transactions while a checking account has no such restrictions. Usually, there are six withdrawals permitted through any mode. In a checking account, you can transact on your account unlimited times without any restrictions.

The article on the benefits of savings accounts for students and checking accounts would help a student decide which kind of account would be better to open. Comparing the two would help to understand the differences and benefits.