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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.

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, updated on July 28th, 2023       

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Compare savings accounts

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.  

site-logos Rabobank High Interest Savings Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 5.75% p.a. 4.40% p.a. 4 months Yes
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Rabobank’s High Interest Savings Account helps grow your savings while offering flexibility and easy access to your money.

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site-logos Up Savers Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 4.35% 0.00% N/A Yes
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Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)

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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

Why compare savings accounts with Savvy?

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.

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