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Student Savings Account

Use our handy guide to compare and find the best savings accounts for students, whether you’re studying at university or TAFE.

Written by , updated on July 28th, 2023

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Are you looking to grow your savings? Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings.

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Compare student savings accounts

Managing your funds isn't always easy when you’re a student. Between working irregular hours and keeping up a busy social life, you may only have a little bit of money left over at the end of the week.

Putting even a small amount of cash into a savings account regularly can help you amass a tidy nest egg. Find out more about student savings accounts and how to compare them with Savvy to help you find the best one for your needs.

What are student savings accounts?

These types of savings accounts are specially designed for students to deposit money and save. Primary and secondary pupils and those studying at university and TAFE who are under 30 years old can open student savings accounts. Banks usually promote the use of a linked everyday account so students can transfer their savings to an everyday account to make purchases.

Interest rates on these accounts are up to two or three times higher than those offered on standard savings accounts. You’ll be able to earn bonus interest for meeting account conditions, which can include making a handful of transactions to your linked account.

How should I compare student savings accounts?

Finding a good savings account if you’re a student can help you make the most of the money you can afford to put away. Comparing account variables with Savvy gives you the best possible chance of finding an account that can make the most out of your money. These variables include:

Interest rates

The speed at which you’re able to grow your savings comes down, in large part, to the interest rate you receive on your account. The higher the rate, the faster your fund will grow. Compare rates side by side with Savvy to find the market’s most competitive offers. Likewise, you can test out various rates using our online savings calculator to simulate your savings growth over several years.

These accounts can also offer honeymoon rates for a short time after you open your account. These high rates usually last for about three to six months before reverting to your much lower base rate, so it’s important to compare these to make sure they suit your savings needs.

Fees

Student savings accounts are typically fee-free, potentially saving you hundreds of dollars a year in unnecessary monthly fees. You may be charged fees for setting up a linked everyday account, and this is an important factor to compare. Some banks waive the monthly account fee if you deposit a certain amount, are a full-time student or under 30 years old.

Account requirements

Students can earn bonus interest in exchange for meeting monthly account requirements. These conditions may include minimum deposits or limited transactions. For example, some accounts make it a requirement that you deposit $1,000 every month but allow you to make up to five transfers to your linked account. Other accounts will have minimum balance requirements as low as $1. To prevent you from missing out on crucial bonus interest, ensure you compare and find a set of conditions that suit you.

Access to your cash

When you’re studying, paying living expenses such as rent and bills plus keeping up a social life, access to cash can be important. For example, online savers are easier to tap into than term deposits, which lock your money away. Utilising Savvy’s simple comparison information will allow you to find an account which doesn’t restrict you from withdrawing, so you’ll always have money at hand to meet due dates.

Handy features

Banks offer students added extras, such as online goal trackers, personalised insights and the ability to schedule automatic deposits. Some of these accounts also offer ‘round up’ features. This rounds up purchases on your linked account to the nearest dollars and puts the extra change in your savings account. The perks of linking a transaction account also include contactless payment, Bank@Post and discounts on major brands.

What are some ways to save money as a student?

Separate spending and savings

Having individual savings and transaction accounts allows you to distinguish between what you can spend and what you can’t touch. This allows you to use one account for day-to-day purchases without sacrificing the interest you’ll earn on your savings.

Prepare a budget

Car running costs, rent and other living expenses are costs students often have to bear if they’re studying and living out of home. Budgeting can show you how much you have left over after every pay cycle and can help you work out how much you can contribute to your savings. If you need a little bit of extra help, you can use Savvy’s savings goal calculator to work out how much you need to deposit to reach your target.

Compare interest and fees with Savvy

If you have a goal, finding a good savings account with the most competitive rate and lowest fees will help you achieve it faster. As such, comparing with Savvy can help you unearth the best deal among the bevy of financial institutions operating in Australia today. Also, you can use our handy goal calculator to see how long it’ll take to reach your target.

Weigh up special offers

Banks often offer introductory rates to give customers high interest for a short time after opening their savings account. These can be helpful if you’re a short-term saver, but you run the risk of losing out on a better long-term rate offered by other accounts. Remember to compare base rates before settling on an account with a honeymoon or bonus rate and check what conditions apply to the account.

Types of savings account

Online accounts

Your account doesn't have to be with a bricks-and-mortar bank. By opening an account with an online institution, you can manage your funds via online banking and apps.

High interest accounts

When it comes to growing your savings, the higher the interest, the better. High interest accounts can either come with higher base rates or steep bonus rates.

Kids' accounts

Opening an account for your child can be a great way to give them a head-start with their savings and help teach them about the responsibility of managing their money.

Student accounts

Keeping track of your funds and growing them is important as a student. Some providers offer special accounts with high interest and no fees to help you boost your savings.

Joint accounts

There are many reasons why you may need a joint account, such as if you're combining funds with your partner or managing your parents' money with your siblings.

Business accounts

Businesses have different needs when it comes to their savings, so many banks and other financial institutions offer specialist products designed to offer flexibility.

Bonus interest accounts

Many savings accounts offer bonus interest, which can offer a much higher rate if certain conditions are met, such as a set number of deposits or linked transactions.

Why compare savings accounts with Savvy?

100% free

You won't have to pay a cent to compare savings accounts with us, so you can do so at any time you like.

Online from start to finish

There's no need for you to worry about visiting any banks, as you can compare accounts and open one online.

Reputable partners

We're partnered with trusted financial institutions around Australia to bring more quality to your comparison.

Frequently asked student savings account questions

How do I open a student savings account?

Applying to open a student savings account online is usually straightforward. Your process should include:

Comparing with Savvy to find the account that’s right for you
Applying with the chosen institution
Check your eligibility. You’ll have to be over 14 years old and an Australian resident, for tax purposes.
Submit your photo ID. This can come in the form of a driver’s licence, passport or Proof of Age card.
Submit proof you’re a student. You can supply a Student ID, public transport concession card or a letter from your institution declaring you’re a full-time student.
Open your account and start saving.

What happens to my account once I stop studying?

Once your student ID expires, your student savings account reverts to a normal savings account.

Do I have to pay tax on the interest I earn?

Yes – you must declare any interest you earn on your savings at tax time. Even if you fall under the tax-free threshold, you’ll still need to declare your interest. If your tax file number isn’t attached to your account, your institution will automatically deduct tax from the interest you earn.

How do I know my funds are safe?

The government-backed Financial Claims Scheme guarantees bank balances up to $250,000 in the event your financial institution collapses.

Can I open an account as an international student?

Yes – banks and financial institutions offer accounts tailored to international students. You can open an account once you arrive in Australia but will need to visit a branch to verify your identity before you can start depositing or withdrawing from it.

Our savings calculators

Savings calculator

Use our savings calculator to help you calculate how much you could save over a set timeframe based on different deposit sizes and frequencies.

Compound interest calculator

Your savings can put in work for you. Crunch the numbers to see how much interest you could earn on top of your interest by compounding daily, monthly and annually.

Budget planner

It's crucial to have a clear idea of your monthly household budget to see where your money is going and where it could potentially be better spent.

Income annualisation calculator

If you're applying for a loan or need to know what your salary is for your tax return, you can use our annualisation calculator to work out what you'll earn this financial year.

How much to deposit

Setting savings goals is important. With this tool, you can work out how much you'll need to deposit to reach your financial aims over a set timeframe.

How long to save

Just as important as knowing how much to deposit is working out how long it'll take to reach your goals. This savings goal calculator can help you do just that.

Helpful guides on savings accounts

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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.

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© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.

© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.

1300 974 066

Sign up to our newsletter

Disclaimer and important things you should know

Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.

We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.

For more information about us and how we conduct our business, you can read our privacy policy and terms of use.