It is vital to inform and educate students on personal finance even when their focus is on the academic front. The earliest and one of the most important steps to attain financial independence and responsibility is to open a bank account. There are different aspects like annual fee, online accessibility, ATM access, etc. Let us have a look at different bank accounts for students:

Savings account
A savings account is the most common type of bank account, and most people have this type of account. One can simply park their money, and it will generate interest over time. However, more importantly, as the name suggests, you get in the habit of saving money over the course of time. For students, this is a relevant account as a lot of paperwork is not involved, and they can also keep it for emergency funds. In addition, students can save money according to a goal like paying for education, buying a car, etc. This type of bank account also makes it difficult to withdraw money as and when you like, thereby making it a smart move if one starts early.

Current account
This is a common type of bank account that can be opened by individuals as well as institutions. This kind of account can be operated from any part of the country, and payments can be made multiple times. For students who are traveling for studies, this is an apt account as funds can be sent to the account from anywhere. In addition, an overdraft facility is available, and students can also make use of Internet banking facilities. Among the different bank accounts for students, this is most relevant for students who are studying in a different state.

Certificate of Deposit
A certificate of deposit or CD is not like the usual bank account, and it involves a chunk of money being set aside for a certain period of time. In return, you get a fixed rate of interest. For students, it is a convenient way to save up for later in life. If you withdraw earlier than the planned timeline, withdrawal fee and penalty is involved. Thus, it is perfect if a student does not want the money immediately and wishes to save up for a longer period.

Investment accounts
These are the kinds of bank accounts in which your money is not saved as it is, and it is converted into stocks, bonds, and mutual funds. While there are some market risks involved in this kind of account, students can start investing small sums of money so that they get used to the kind of investments by the time they start earning. It is considered to be a good move if you open an investment account early on in life.