While most students have a checking account to their name for everyday transactions, they do not open a savings account. There are a lot of benefits of having a savings account, even when you have not started earning full-time. Here are some of the reasons why every student should get a savings account.

1. Additional cash reserve – A savings account always serves as a backup when you face a cash crunch. It will prevent you from having to ask friends or family for help when your checking account has zero balance. The additional cash reserve also improves your confidence and acts as a cushion to fall back on.
2. Emergency fund – Imagine getting caught in a situation where you need considerable money right away. It is not always easy asking for money from your parents. Having a savings account will always help you in such situations.
3. Improve the habit of savings – One important reason why every student should get a savings account is to instill the practice of saving. As a student, when you start transferring part of your checking account to your savings account, you enjoy the process of building a cash reserve for your personal use. This practice will help you start saving money once you start earning regularly.
4. Preventing thefts and frauds – Most people have all their money in their checking account and use the same account for online transactions. Imagine getting caught in online financial fraud and finding your money stolen. By splitting your money between two different accounts, you can reduce the risk of losing all your cash.
5. Get more interest – A savings account offers better interest if the money is unused. A checking account gives you nil or minimal interest on your cash. Savings account, on the other hand, offers considerable interest on the money you save, helping you build a reserve.
6. Preventing spending all your money – Another vital reason why every student should get a savings account is to avoid spending all their money and have none left until the next paycheck. Having a surplus in your checking account can make you want to spend it. However, transferring the money into a savings account will ensure that you do not splurge.

These are some of the crucial reasons why every student should get a savings account. Even as a student, it is important that you handle your finances properly, and saving should be a crucial part of your plan. Check which bank offers you better interest rates, and open a savings account right away.