Saving For Your Child’s Education

One loving thing you can do for your child: save for their college education. To do so, you have to start saving now. Here are a few options to consider:

High-interest savings account
Term deposit account
529 plan

On high-interest savings account you’ll earn interest daily and most banks pay compounded interest monthly. If you have direct deposit, you can set it up to make small, regular deposits on a monthly basis. Best of all, these accounts are typically fee free. Another option is a term deposit account, which grows your money for a set time period, usually one to five years. Since these accounts need a large balance to see substantial growth, one strategy is to start saving in a high-interest savings account, and transfer your funds to a term deposit account when your child starts high school. Lastly, you can open a 529 plan. Typically run by a state or college, a 529 plan invests your money in mutual funds and grows tax-free. However you save, investing in your child’s future is a great way to say, “I love you!”

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