The banks in India offer various financial services through an array of products and services to its valuable customers. Some of the regular lists provided by banks are a savings bank account, current account, recurring deposit account, fixed deposit account, term deposits, locker facilities, loans and advances and so on. Apart from this, one such service which some of the prominent banks in India offer is a Student Account.
Let's understand in detail about different aspects related to the Student Account.
What is a Student Account?
A student account is an account by banks for individuals who are currently non-residents and have enrolled for a course abroad. The student account is a non - resident external savings account created exclusively for students to manage their finances readily and conveniently when they are studying out of India.
The Student Account can be opened either through offline or online mode as per the convenience of the applicant.
Eligibility Criteria for Opening a Student Account
- The applicant should be an Indian Citizen.
- The applicant should be a student of an institution (located abroad)
- At the time of opening the account, the age limit should be in the range between 10 years - 30 years.
Benefits of a Student Account
- Easy Accessibility - The account will have facilities of international ATM cum Debit card and can be easily accessible from anywhere across the globe.
- Minimum Balance Requirement - The account can be opened with a minimum balance of Rs 500 or some banks even offer a zero balance account.
- Attractive Interest Rate - Some of the Indian banks offer an attractive interest rate of 4% per annum on the balance amount in the student account.
- Tax Benefit - In the case of the student account, interest earned on the account is not taxable in India.
- PAN Card - There is no need for the applicant to have a PAN Card to apply for the student account, as some banks in India approve application form for a student account, without PAN card.
- No Formal Address Proof Required - While applying for a student account, there is no need for the student to provide a formal address proof. Students can provide their hostel address for a point of communication.
- Easy Transfer of Funds - Through a student account, funds can be easily transferred and are fully and freely repatriable.
- Mobile Banking - Student Account provides mobile banking facility for its users.
- ATM cum Debit Card - The student account comes with ATM cum debit card, helping its users to withdraw cash from any of the ATMs during their stay abroad.
- Internet Banking Facility
- Cheque Book Facility
Documents Required for Opening a Student Account
- Passport - The applicant should submit the photocopy of the first and last four pages of their passport which carries their name, residential address, date of birth, place of issue, date of issue, photograph, expiry date, signature and other details.
Note: Signature of the applicant on the passport should be visible and the same should match with the registration form.
- Address Proof - Any one of the following lists of documents should be submitted as an address proof (Bank Account Statement, utility bills, valid visa, work permit visa, a resident card which carries the name and full address, PAN Card, Driving License, Voter ID, documents issued by the government departments)
- Valid Student Visa - In case if a student holds a regular visa then a copy of identity card from the respective university should be obtained to confirm the student status or a copy of the admission letter.
- Photocopy of Identity Card issued by the College
- Recent Passport size photographs
Why Should One Choose a Student Account?
Student Account comes with a list of unique banking requirements for those who are studying abroad. The account requires minimum balance requirements and offers maximum convenience. Apart from this, it offers attractive interest rates and provides access for easy transfer of funds.
The student account can be maintained in Indian currency, thus having a student account will be beneficial for Indian students who are planning to study abroad.