Saving for College
College is an important step in life and there are many savings options, depending on the amount of time you have to save and your financial situation. Below are just a few of the savings options for you and your family to consider when saving for college.
Savings Account - A savings account allows you to earn interest at a slightly higher rate than checking, and you will have immediate access to your money when you need it. If your savings goals are short-term, this may be the best option for you. Click here to learn more.
Savings Certificates - When you money is in a certificate, it earns a much higher rate than a savings account, but you can NOT touch it for a specified term. The term can range from 3 months to 5 years. The money you put in a savings certificate is insured by the NCUA, a U.S. government agency. Click here to learn more.
Coverdell Educational Savings Accounts - The Coverdell Education Savings Account (formerly the Education IRA) is a popular way to save for a child’s education. Plus, any family member can contribute, so if a grandparent wants to put a little extra in at birthday time, it's easy to do. Take advantage of tax-free earnings as long as the account is used for education before age 30. You can choose from a variety of stocks, bonds and mutual funds. Click here to learn more.
529 Plan - These plans provide tax-deferred earnings towards qualified education expenses like tuition, room and board. Beneficiaries of the 529 plan can be any age and the funds are transferrable to another qualifying family member. These plans offer flexibility in terms of both choice of college and investing options.
To discuss you college savings plans with a qualified financial advisor
, stop by your local branch