College Students Can Invest in Their Futures With CDs

Whether the economy is going through a boom or a bust, it’s always a good idea to save money, especially for college students. Sooner than you think, you’ll be tossing your mortar board in the air and embarking on a bright and rewarding future. Just remember that unless you were lucky enough to have a full scholarship or very wealthy parents, student loans are likely to be as much a part of your future as your brilliant career. By saving part of the money earned from internships or part-times jobs in certificates of deposit (CDs), you could have a nice little savings waiting for you after graduation.
Although they fluctuate constantly, some of the best CD rates are available right now. The minimum CD amount that most banks will allow is $500. You can select a maturity (pay out date) of six months (sometimes nine months), one year, two years or five years for your CD. For example, a freshman college student who bought a five-year, $500 CD could let it earn interest at the current rates, then when it matures, he could use it to make a substantial payment on his student loans.
Web sites like SelectCDRates.com can help you find out what the average CD rates are nationally or what the current rates are in a particular state. Investing your money, especially during a down economy, in conservative assets like CDs can help any student to be better prepared for what he has to face after graduation, whether it be student loans, buying a new house, or relocating to start a new entry level job.