Best high-yield savings accounts for college students

Saving money is important for everyone, including college students. Whether you work part-time, full-time, or only in the summer months, a high-yield savings account (HYSA) can be a great place to park your cash. 

Compared to a traditional savings account, an HYSA earns a higher interest rate, making it easier to build an emergency fund, save for tuition and books, and prepare for life after graduation. 

To help you find the ideal account for your unique situation, we did the heavy lifting. Our team compared APYs, monthly fees, minimum opening deposits, deposit insurance, and more to hone in on this list of the best high-yield savings accounts for college students.

Our picks for the best high-yield savings accounts for college students

SoFi

Why we picked it: When you sign up for displayname, SoFi Bank automatically sets up both accounts for you so you can manage all your banking in one place. Plus, you can pay $10 per month to access valuable membership perks like unlimited financial planning sessions and lower rates on personal loans and student loan refinancing.

• APY: Up to apy (rates_last_updated)
• Monthly fees: None
• Minimum opening deposit: None
• Minimum balance: None
• Mobile banking: Yes

Pros

• Hybrid savings and checking account
• Membership perks
• No account fees or minimum balances

Cons

• Checking account is required
• No physical branches
• Member perks vary by individual and location

Best for: An all-in-one banking solution

Ally Bank

Why we picked it: Ally Bank’s high-yield savings account comes with a variety of built-in savings tools that can help you make the most of your money while in college. You can organize your cash in buckets to save for different goals and use the Surprise Savings tool to automatically transfer any extra money from your checking account.

• APY: 3.00%
• Monthly fees: None
• Minimum opening deposit: None
• Minimum balance: None
• Mobile banking: Yes

Pros

• Built-in savings tools
• No monthly fees or minimums
• 24/7 support

Cons

• Can find higher APY elsewhere
• No physical branches
• Can’t deposit cash

Best for: Built-in savings tools

Capital One 360 Performance Savings

Why we picked it: You can open and manage the displayname account in-person, online, or via the mobile app. Depending on where you go to college, you may receive in-person support at a local Capital One branch or Capital One Cafe. 

• APY: apy (rates_last_updated)
• Monthly fees: None
• Minimum opening deposit: None
• Minimum balance: None
• Mobile banking: Yes

Pros

• In-person service
• No monthly fees or minimums
• Connects to the Capital One checking account

Cons

• Limited local branches and cafes
• APY lower than online-only accounts
• Fees for outgoing wire transfers 

Best for: In-person banking

Marcus by Goldman Sachs

Why we picked it: With the Marcus by Goldman Sachs high-yield savings account, you get a competitive rate plus no monthly fees or minimum balance requirements. As an added bonus, there’s 24/7 customer service. 

• APY: 3.40%
• Monthly fees: None
• Minimum opening deposit: None
• Minimum balance: None
• Mobile banking: Yes

Pros

• Same-day transfers
• 24/7 support
• Unlimited withdrawal and transfers

Cons

• Must maintain a positive balance for 60 days to keep account active
• No ATM access
• No physical branches 

Best for: Competitive rates

Synchrony Bank

Why we picked it: The displayname high-yield savings account includes a free ATM card, which can come in handy if you need easy access to cash for emergency or unexpected expenses in college. Plus, the bank won’t charge any fees if you use Plus or Accel ATMs.

• APY: apy (rates_last_updated)
• Monthly fees: None
• Minimum opening deposit: None
• Minimum balance: None
• Mobile banking: Yes

Pros

• Custom account alerts
• No fees or minimums 
• ATM fee reimbursements

Cons

• No checking account to accompany the savings account
• No cash deposits 
• No in-person banking

Best for: ATM access

Barclays Online Savings

Why we picked it: If you prefer mobile banking because you’re always on the go as a college student, the displayname is a solid choice. You can open and manage your savings on its highly-rated mobile app.

• APY: apy (rates_last_updated)
• Monthly fees: None
• Minimum opening deposit: None
• Minimum balance: None
• Mobile banking: Yes

Pros

• Highly-rated mobile app
• Savings tools
• No fees or minimums 

Cons

• No checking account
• No branches in the U.S.
• No ATM access

Best for: Mobile banking 

CIT Bank Platinum Savings

Why we picked it: If you can keep at least $5,000 in your account, the displayname is a solid choice. You can earn a very high APY on all balances of $5,000 or more. Plus, there are no account openings or monthly maintenance fees.

• APY: Up to apy (rates_last_updated)
• Monthly fees: None
• Minimum opening deposit: $100
• Minimum balance: $5,000 to earn the highest APY 
• Mobile banking: Yes

Pros

• High APY for balances over $5,000
• No fees
• ATM fee reimbursements 

Cons

• Low APY for balances below $5,000
• Requires $100 to open
• No cash deposits 

Best for: Higher balances 

What makes a high-yield savings account good for college students?

If you’re currently in college, a HYSA is worth exploring as it offers these noteworthy benefits:

• No monthly maintenance fees – Some savings accounts charge monthly fees that can add up quickly. Fortunately, most HYSAs do not so you can keep more of your hard-earned money.  
• No or low minimum balance – In most cases, you don’t have to worry about meeting a certain minimum balance threshold. With an HYSA, your account will stay open, regardless of how much cash you have in it.  
• Competitive APY – HYSAs earn significantly higher APYs than traditional savings accounts. By opening one up, your money will grow faster without a lot of extra effort.  
• Easy mobile banking – You can usually access your HYSA through a mobile app. This is a huge plus if you’re always out and about and don’t have time for online or in-person banking.
• FDIC/NCUA insurance – As long as you choose a reputable HYSA, your money will be protected in the event the institution fails. Most HYSAs are insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration).
• Fast transfers – If you need to transfer money between your checking and your HYSA, you can do so quickly. Most HYSAs offer instant or quick transfers.
• Simple account opening – It doesn’t take a lot of time or effort to open an HYSA. You can typically open one online or via the bank’s mobile app by sharing some basic information about yourself.

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How to choose the right high-yield savings account

As you explore HYSAs, you’ll find that they’re not created equal. Here are several tips to help you compare your options.

• Building your first emergency fund – An emergency fund is essential if you’re in college as it can help you avoid debt when things don’t go as planned. The general rule of thumb is to keep anywhere between three to six months of expenses in your emergency fund.
• Saving for tuition and textbooks – Even if you’re using student loans or family support to help pay for tuition and other related expenses like textbooks, saving for them can reduce how much you have to borrow. The less you borrow, the more you may save on interest costs.
• Rent and living expenses – Whether you live on or off campus, you likely have rent and living expenses, such as groceries and gas. Saving for them in an HYSA can alleviate a great deal of financial stress when monthly bills come.
• Short-term financial goals – If you have a short-term goal, such as buying a new car or starting a business after graduation, you can use an HYSA to save for it. Even saving a few thousand dollars for a down payment can help your finances in the long run.

Compare bank rates

How to grow your savings while in college

It is possible to grow your HYSA account, even while you’re taking classes and working on your degree. These tips can steer you in the right direction.

• Set up automatic transfers – If you work, automatic transfers from your checking account can make it easier to save. You may be surprised at how much your HYSA grows if you contribute to it on a regular basis. 
• Save part of every paycheck – The pay-yourself-first strategy is ideal if you hope to save money. Before you spend your paycheck, allocate a set percentage or dollar amount towards your HYSA. “Set a target and a deadline, with automatic monthly or biweekly deposits. This will help build a habit of setting aside money for expenses that will happen (apartment security deposits, car maintenance, etc),” said Alex Quintana, founder at Arca Savings. “The self-created goals also add friction, so when you look to withdraw money, you think twice. It makes it a lot harder to raid your savings for a road trip when that savings is labeled ‘apartment fund.'”
• Use internship and scholarship money wisely – Internships and scholarships can do wonders for your finances as a college student. However, this is only true if you save at least a portion of the funds in your HYSA rather than spending everything at once. 
• Separate spending and savings – To keep your spending and savings separate, it’s a good idea to open a checking account alongside an HYSA — this way you know what funds you may spend and which ones you shouldn’t touch. 
• Take advantage of higher APYs – The higher the APY, the faster your money will grow. That’s why it’s smart to shop around and find an HYSA with the highest APY for your particular situation. 

Common mistakes college students make when choosing a savings account

As you search for the right HYSA, be sure to avoid these common pitfalls.

• Chasing APY alone – While APY is important, it’s not everything. Other factors like fees, ATM access, minimum requirements, and deposit insurance should all be considered as well. “For a college student with a small balance (let’s use $1,500 for our example), the smartest move isn’t chasing the highest APY, it’s picking a no-conditions account with named savings buckets. The interest difference alone, while real, isn’t compelling enough to switch,” Quintana said.
• Ignoring fees – Fees might not seem like a big deal, but they can add up fast. That’s why you should read the fine print closely to ensure you don’t overlook fees, such as maintenance fees or wire transfer fees.
• Keeping all savings in checking – Your checking account is designed for everyday purchases, such as groceries and gas. Transfer any extra funds you have after paying your bills and daily expenses to your HYSA. 
• Not reviewing rates regularly – HYSA rates are variable and based on the Fed benchmark rate, meaning they’re bound to change. Be sure to evaluate them regularly, as it might make sense to switch to an HYSA with a higher APY.
• Choosing an account with unnecessary restrictions – If you choose an HYSA that requires a minimum balance of several thousand dollars, for example, you might pay for it if you can’t meet the threshold. Decide whether the benefits of a certain account outweigh the restrictions.

Our final recommendations for college students

An HYSA can serve as a valuable financial tool in your college years and beyond. Before you open one, however, do your research. Take the time to consider all your options and weigh the pros and cons of each. If you commit to an HYSA and find it no longer meets your needs, don’t be afraid to switch.

Frequently asked questions

What is the best high-yield savings account for college students?

The best high-yield savings account for college students varies by individual. However, the high-yield accounts by Marcus by Goldman Sachs, Ally Bank, Capital One, and SoFi are all good options to explore. 

Can college students open a high-yield savings account?

Yes, college students may easily open a high-yield savings account. Most banks let you do so online or via the mobile app with some basic information about yourself and no minimum deposit requirement. 

How much money should a college student keep in savings?

The amount of cash you should park in your savings account as an HYSA depends on your unique situation, employment status, and risk tolerance. However, three to six months’ worth of living expenses is a good place to start.

Are high-yield savings accounts safe?

Yes, most HYSAs are safe as they’re insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration). Make sure the account you choose is backed by one of these organizations. 

Do college students pay taxes on savings account interest?

Yes, the interest you earn in college from your savings account is considered taxable by the IRS. You’ll need to report it when you file your annual tax returns.

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