We all grow up hearing about the importance of saving for a rainy day. Yet, a vast majority of college students do not have any money saved up. Around 26% of adults in the country have no emergency funds. This leaves you wondering what happens when emergencies come knocking at your doorstep.

The best time to start saving money is as a student. With that in mind, here are the benefits of savings accounts for students.

Emergency funds
This is undoubtedly the biggest benefit of opening a savings account for any student. Emergencies can show up at any time and one should be ready to tackle it without blinking the eye. These emergencies can range from a broken car that needs urgent fixing to a malfunctioning appliance while you live thousands of miles away from home. Medical expenses are even more serious in nature.

So, instead of waiting for help to show up, it is best to be ready. This is one of the benefits of savings accounts for students.

Secured funds
Money that is left lying around at home in a drawer can get stolen or, it can even get spent. This can see you fall short towards the end of the month. On the other hand, keeping your money in a savings account ensures that it stays safe until you need to manually withdraw it.

Moreover, the money in many major savings accounts is FDIC insurance. This means that if the bank undergoes a loss, your money is still safe and can be reimbursed up to a certain amount. And, the limit for this amount is at a staggering $250,000. This means if you have $5000 in your savings account and $200 in interest, you will get the entire amount i.e. $5200 reimbursed if anything happens to your bank. So, your money really could not get any more secure than this. Always make sure to ask your bank if it is FDIC insured before depositing your savings.

Interest on funds
Finally, through a savings account, students can actually earn interest on their savings. Making your money grow with great interest rates is another benefit of savings accounts for students. There are many savings account banks that offer really good interest rates to their customers. Some of the best bank options for earning good interest are Discover Online Savings, Marcus by Goldman Sachs, Barclays Online Savings Account, and American Express Personal Savings. Try to opt for a bank that lets you also have zero balance in times of an emergency.

Do not opt for a particular bank account only because everyone else is using it. Look around, do some research, and find the one best suited to your needs. If possible, you can also take help of a guide who can help you with managing your funds.