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Looking at the Best Savings Accounts for Students

Being a student means feeling perpetually broke, and looking for the best savings accounts for students is the last thing on your mind. Having access to a good student loan is higher on your agenda. However, saving money, at least a little bit, can lead to a good lifetime habit that can help you keep from being broke for the rest of your life.

Where to Look

Looking on the Internet is the easiest way to find a bank account to fit you. You can also find several websites that offer comparisons of the different accounts available and they can prove to be an invaluable tool. You can look for accounts specifically for students, but the top saving accounts in UK are often going to be the same.

What to Look For

This can depend a lot on you and how you anticipate using a savings account. If your intent is to put money in and not take it out, then an account with unlimited deposits, but only one penalty free withdrawal can be just what you need. If you think you will be putting money in and also taking it out regularly, you’ll need an account that has unlimited withdrawals, or at least a number that you can live with.

You will want the highest return possible on your savings, so a high interest rate is important. Bear in mind that the more access you want to your money, the lower the interest rate is likely to be. Some accounts can be opened with as little as £1, but most of the better paying accounts require a minimum deposit of £1,000.

Where the Best Rates Are Now

All of the high paying accounts are online only, with the exception of ING, which also provides telephone access. Currently, Derbyshire Building Society is offering a 3.11% AER variable rate with a 2.11% bonus at the end of one year. This account has unlimited withdrawals and the minimum deposit is £1. A variable interest, however, means that the rate may not be the highest for long. Offering three penalty-free withdrawals per year and a 3.06% AER rate is West Bromwich Building Society with a £1,000 minimum deposit and a 1.06% bonus. The best savings accounts for students depends on the student, but there are many to choose from.

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