The best college savings accounts of 2018 feature appealing interest rates, low maintenance & monthly fees, 24/7 account access and FDIC insurance.
In the past, many financial institutions did not invest in projects that offer college savings accounts for students. However, this has changed considerably as more banks continue to lure students with great offers in order to partner with them. These offers that are associated with some of the college savings accounts include high interest rates and low transaction fees. College savings accounts are designed to help students to save money for their tuition fee expounding on why penalties are imposed for withdrawing it for other purposes. Also, the 529 prepaid tuition plan program is also used for tuition fees, and is best suited for students planning to use the money for tuition fee only to avoid being penalized. The 529 program has numerous banking opportunities such as tax-free withdrawals, income tax breaks and high contribution limits. Coverdell account holders are not allowed to deposit more than $2,000 annually.
The Top 5 Best College Savings Accounts of 2018
Capital One 360 Savings Account is best suited for students so they can start saving their money. Some of the features associated with this bank include 1% APY on any balance and zero monthly fees. Students can access information through their online platform
Ally Bank is ideal for students because they are not required to deposit a “certain” amount of money or pay maintenance fees to open an account with them. The bank is working in conjunction with Allpoint ATM network. Additional benefits include a high interest rate offered to their customers.
American Express National Bank Personal Saving Account offers its customers an online savings account which is similar to Ally Bank, Discover Bank, and FNBO Direct. Customers pay a highly competitive interest rate. Other features include zero maintenance & monthly fees, 1.90% APY, 24/7 access and FDIC insurance.
You can choose some of the best college savings accounts that meet your educational needs in 2018. We have provided you with a link to help you choose the ones that meet your criteria.
CITI Bank–Premier High Yield Savings Account is one of the banks with the highest interest rates compared to the others. Additional features include a 1.85% APY and $100 minimum deposit. The bank was recently recognized for the “GoBankingRates” awards.
Discover Bank Account provides its customers with numerous banking opportunities. Customers partnering with them do not have to pay a monthly or minimum balance and interest rates. With the high rates of 1.50%, customers can make more money.