College students have a lot on their plates, so hunting down a high-yield savings account might not be at the top of their to-do lists. But stashing even just $50 a month in a high-yield savings account lets you earn interest to grow a safety net for when unexpected expenses pop up.
Savings are essential to any sound financial plan, whether you’re building an emergency fund or putting money aside for next semester’s books. A high-yield savings account makes it easy to grow your savings with minimal effort beyond opening the account.
While there are loads of college checking accounts, there aren’t as many savings accounts designed for students. But since there are many free savings accounts, don’t limit your search to offerings with a “college” label. If you’re at least 18 years old, you’re likely eligible for a no-fee high-yield savings account, which most online-only banks offer.
Here are our top picks for the best high-yield savings accounts for college students that can serve you well while you’re still in school.
Best high-yield savings accounts for college students
| Bank | APY |
|---|---|
| BMO Harris | 5.10% |
| Capital One Bank | 4.35% |
| Discover | 4.35% |
| Ally Bank | 4.35% |
| PNC Bank | – |
| SoFi Bank | 4.60% |
BMO Harris
BMO Alto Online Savings Account- APY APY = Annual Percentage Yield.
- 5.10%
Depending on where you go to school, you might have seen a BMO Harris bank branch. However, the Alto savings account is an online-only option. It currently has a competitive 5.10% APY that’s on par with a number of the best savings rates right now.
While some banks limit you to six withdrawals or transfers per month for savings accounts, and charge you an excessive transfer fee each time you go over this threshold, BMO’s Alto account doesn’t. There aren’t any other fees to worry about, either. However, you won’t be able to deposit checks, cash or handle deposits at an ATM or BMO branch. You’ll need to arrange transfers from another account, instead. But BMO allows unlimited withdrawals and transfers.
- No minimum deposit or balance requirement
- Unlimited transfers and withdrawals
- No cash or check deposits
- No branch or ATM deposit access
Depending on where you go to school, you might have seen a BMO Harris bank branch. However, the Alto savings account is an online-only option. It currently has a competitive 5.10% APY that’s on par with a number of the best savings rates right now.
While some banks limit you to six withdrawals or transfers per month for savings accounts, and charge you an excessive transfer fee each time you go over this threshold, BMO’s Alto account doesn’t. There aren’t any other fees to worry about, either. However, you won’t be able to deposit checks, cash or handle deposits at an ATM or BMO branch. You’ll need to arrange transfers from another account, instead. But BMO allows unlimited withdrawals and transfers.
- No minimum deposit or balance requirement
- Unlimited transfers and withdrawals
- No cash or check deposits
- No branch or ATM deposit access
- APY APY = Annual Percentage Yield.
- 4.35%
Capital One’s 360 Performance Savings checks all the essential boxes – no fees, minimum balance requirements and a generous 4.35% APY. Plus, if you prefer in-person assistance with managing your money on campus or at home, Capital One has branches and cafes nationwide.
Capital One sets itself apart with a mentoring program called Money & Life. You can get up to three free 60-minute coaching sessions, along with access to self-guided education to refine your personal finance skills. While these aren’t solely reserved for students, the program can make a huge difference in your financial journey. Other features we like include the automatic savings plan to schedule recurring transfers to reach your goal, mobile check deposit and the ability to manage multiple accounts via the mobile app.
- No fees
- Ability to set up multiple savings goals
- Access to the Money & Life program
- Physical branch access
Capital One’s 360 Performance Savings checks all the essential boxes – no fees, minimum balance requirements and a generous 4.35% APY. Plus, if you prefer in-person assistance with managing your money on campus or at home, Capital One has branches and cafes nationwide.
Capital One sets itself apart with a mentoring program called Money & Life. You can get up to three free 60-minute coaching sessions, along with access to self-guided education to refine your personal finance skills. While these aren’t solely reserved for students, the program can make a huge difference in your financial journey. Other features we like include the automatic savings plan to schedule recurring transfers to reach your goal, mobile check deposit and the ability to manage multiple accounts via the mobile app.
- No fees
- Ability to set up multiple savings goals
- Access to the Money & Life program
- Physical branch access
Discover
Discover Online Savings Account- APY APY = Annual Percentage Yield.
- 4.35%
Another widely recognized name in the credit card industry, Discover is also worth considering. The bank’s online savings account is a no-frills account with no fees attached. You’ll earn a 4.35% APY, and if you have a Discover checking account, you can set up overdraft protection to avoid overdraft fees on your everyday spending. The account does not come with an ATM card, but cash deposits are not available. You can deposit funds via direct deposit, online transfers or mailing a check or depositing it via the app.
- No fees
- No minimum balance or deposit requirement
- Overdraft protection when linking your checking and savings account
- No cash deposits
Another widely recognized name in the credit card industry, Discover is also worth considering. The bank’s online savings account is a no-frills account with no fees attached. You’ll earn a 4.35% APY, and if you have a Discover checking account, you can set up overdraft protection to avoid overdraft fees on your everyday spending. The account does not come with an ATM card, but cash deposits are not available. You can deposit funds via direct deposit, online transfers or mailing a check or depositing it via the app.
- No fees
- No minimum balance or deposit requirement
- Overdraft protection when linking your checking and savings account
- No cash deposits
- APY APY = Annual Percentage Yield.
- 4.35%
Ally is one of the most recognized names among online-only banks. The full-service digital bank offers a high-yield savings account that earns 4.35% APY and has several convenient app features. You can use Ally’s savings buckets to divide your money across several savings goals -- like that spring break fund, car repair emergency stash and books for the semester. And you can round your transactions to the nearest dollar to add the spare change to your savings account. Lastly, we like Ally’s Surprise Savings tool, which analyzes your linked checking accounts to identify opportunities to move more to your savings account.
- No fees
- No minimum balance requirement
- Saving buckets for working toward financial goals
Ally is one of the most recognized names among online-only banks. The full-service digital bank offers a high-yield savings account that earns 4.35% APY and has several convenient app features. You can use Ally’s savings buckets to divide your money across several savings goals -- like that spring break fund, car repair emergency stash and books for the semester. And you can round your transactions to the nearest dollar to add the spare change to your savings account. Lastly, we like Ally’s Surprise Savings tool, which analyzes your linked checking accounts to identify opportunities to move more to your savings account.
- No fees
- No minimum balance requirement
- Saving buckets for working toward financial goals
- APY APY = Annual Percentage Yield.
- –
- Sign-Up Bonus
- $100
PNC’s Virtual Wallet Student account is a combination of checking and savings accounts with an additional reserve account for short-term planning. The account has a range of helpful tools for saving, spending and tracking where your dollars are going. The bank regularly offers a $100 sign-up bonus for new student customers in certain locations who make 10 debit card transactions within the first 60 days. This account is free for the first six years after you open an account, but does require a $25 minimum deposit. After six years, the monthly maintenance fee goes up to $7, but can be waived if you meet certain requirements.
We like that this account is free and comes with the ability to set savings goals and low-cash mode notifications. But it doesn’t earn interest. However, the PNC Virtual Wallet Student account may be a good fit if you want to keep both of your accounts under the same roof. And you’ll have online and branch access to your money.
- No monthly fees or minimum balance requirements for six years from account opening date
- Robust suite of budgeting tools
- May qualify for a $100 bonus
- Banking access available online and at a nearby branch
PNC’s Virtual Wallet Student account is a combination of checking and savings accounts with an additional reserve account for short-term planning. The account has a range of helpful tools for saving, spending and tracking where your dollars are going. The bank regularly offers a $100 sign-up bonus for new student customers in certain locations who make 10 debit card transactions within the first 60 days. This account is free for the first six years after you open an account, but does require a $25 minimum deposit. After six years, the monthly maintenance fee goes up to $7, but can be waived if you meet certain requirements.
We like that this account is free and comes with the ability to set savings goals and low-cash mode notifications. But it doesn’t earn interest. However, the PNC Virtual Wallet Student account may be a good fit if you want to keep both of your accounts under the same roof. And you’ll have online and branch access to your money.
- No monthly fees or minimum balance requirements for six years from account opening date
- Robust suite of budgeting tools
- May qualify for a $100 bonus
- Banking access available online and at a nearby branch
- Savings APY APY = Annual Percentage Yield.
- 4.60%
- Checking APY APY = Annual Percentage Yield.
- 1.20%
SoFi is an online-only bank that offers a competitive APY on both its savings and checking accounts. There’s no minimum deposit requirement or monthly maintenance fees. And when you open a savings account, you automatically get a checking account too. If you’re not looking to move your checking account, you might consider a different high-yield savings option. But its checking account is one of the best around if you don’t mind online banking. You’ll earn up to 4.60% APY on your savings and 0.50% on your checking account balance as long as you have direct deposit set up -- a rare offer for a free checking account. No minimum direct deposit amount is required.
We also like that SoFi offers a convenient round-up option to automatically move the remaining cash from a purchase into your savings account. And you can make cash deposits at Green Dot retailers.
- No fees
- No minimum balance
- $10 sign-up bonus when you deposit $10 within the first five days of account opening
- Both a checking and savings account option
SoFi is an online-only bank that offers a competitive APY on both its savings and checking accounts. There’s no minimum deposit requirement or monthly maintenance fees. And when you open a savings account, you automatically get a checking account too. If you’re not looking to move your checking account, you might consider a different high-yield savings option. But its checking account is one of the best around if you don’t mind online banking. You’ll earn up to 4.60% APY on your savings and 0.50% on your checking account balance as long as you have direct deposit set up -- a rare offer for a free checking account. No minimum direct deposit amount is required.
We also like that SoFi offers a convenient round-up option to automatically move the remaining cash from a purchase into your savings account. And you can make cash deposits at Green Dot retailers.
- No fees
- No minimum balance
- $10 sign-up bonus when you deposit $10 within the first five days of account opening
- Both a checking and savings account option
The difference between a high-yield savings account and a savings account for college students
High-yield savings accounts are designed to deliver higher returns on your money than traditional savings accounts. The top high-yield savings accounts, for example, offer interest rates at least 10 times higher than the national average. But in some cases, they come with extra hurdles you’ll need to clear, such as hitting a minimum balance threshold.
Savings accounts for college students, on the other hand, typically don’t have as many requirements. They’re designed to be an entry point for young adults who are not earning much cash. With that in mind, they typically don’t charge fees.
However, you don’t have to limit your search to student savings accounts to get these same benefits. Many of the best high-yield savings accounts don’t charge fees or have any opening deposit requirements.
How to choose a high-yield savings account as a student
To get into the routine of saving while still in school, here’s what to look for when choosing the perfect place to park your savings:
- No fees or minimum balance requirements: Savings accounts typically have minimum balance requirements, which can often be hard to meet as a student without a steady income. And since fees can eat away at any interest you earn, look for a student or free savings account.
- Digital tools: Most banks offer a website and mobile app to help you easily manage your account from anywhere. But some banks offer features or savings tools to help you build money management skills. Ally, for example, offers savings buckets to help you organize your money. Accounts with convenient online and mobile tools can make managing your money easy -- and even fun.
- APYs: Before opening an account, compare interest rates to get the best return. There are many banks and credit unions paying impressive annual percentage yields on savings accounts. And as you contribute more funds to the account, and the interest compounds, the more you’ll have set aside.
- Customer service: Some banks will keep you on hold for hours at a time. It’s always good to test out their customer service before you sign up. Try sending them a help email, using the online chat service or calling their hotline to see how helpful and responsive they are.
- Withdrawal limits: Some banks charge an excessive withdrawal fee if you make more than six monthly withdrawals. If you think you’ll need to make more, find a bank without withdrawal limits.
How to open a high-yield savings account
You can usually open a high-yield savings account online in just a few minutes. Some steps may vary by bank, but here’s what the process usually looks like:
- Compare your options: Before you open a savings account, compare different banks, features, rates and requirements to make sure you’re selecting the right bank for your financial needs.
- Apply: You can fill out an application either online or in-person (if the bank has physical branches). You’ll typically need to provide your Social Security number, physical address, date of birth and a government-issued ID.
- Fund your account: Once your application is approved, you can fund the account. Keep in mind not every bank accepts cash deposits. Most banks allow bank transfers, automated clearing house transfers and mobile check deposits.
The bottom line
No matter what you’re interested in learning while you’re in college, you’ll need to master one essential skill for success after you graduate: how to save. Start searching for the right fit for your finances and open one today.
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