i am a senior in high school, I was wondering if i should put my money in a savings account or a checking?

Question

i'll graduate in 07 and since my parents did not have any kinda plan to help me pay for collage i have been saving money to pay fo it my self. I dont know if i should put my savings in a savings account or a checking account? Which is better and why?

Answer 1

If you expect (or want to) receive any financial aid to pay for college, you need to either spend that money or hide it in a (gasp) retirement account. If you don't, FAFSA asks you how much you have saved, and your financial aid package will expect you to spend all of that money.

The best retirement account to hide it in is a Roth IRA (but you can only contribute to it in the same year that the money is earned, so it might be too late for you). Do some research online into Roth IRA's.

If you don't expect any financial aid or you don't find a retirement account, you should put the money into an account that earns the most interest. Generally it'll be an online money market or savings account. Currently the best ones are linked below. Make sure you read the terms and understand how to transfer money in and out of these accounts.

Answer 2

For starters, it is good that you are thinking of money ahead of time. I hope you have worked hard to acheive good grades and obtain knowledge from High School so far. Doing so builds a foundation that will carry you through college. Putting money into a checking account is normally done to pay bills from month to month. Savings accounts give you a percentage of money in return for the bank investing your money. Therefore, you should leave just a little more than your bills cost (if any) in your checking, and everything else into savings. You should also research your local area banks (not just your parents) and how much their savings accounts pay on average ( mine is about 1.5%). Banks normally pay less that Credit Unions. You should also ask the bank about cash deposits, which will pay more in the long run than a savings account alone. ALL OF THIS ASIDE: You should look into paying for college using all the scholarships that you can. Go to your State's web page and look up financial aid and college scholarships. The Federal Government also gives aid, which you can look into at (www.fafsa.ed.gov/). Most state programs require you to fill out the federal forms before applying for state aid. You should also research the college that you are applying to. Almost every college/university has a financial aid program unique to that institution. Other options include work studies, which is when you work for the college (while attending) to help pay tuition. I hope that this information has given you a little insight as to what is out there to pay for college.

Answer 3

Good question. Depending upon the amount you have saved, you may be better served by a Money Market Account. These generally offer better rates than Savings Accounts, but also offer some of the liquidity of a Checking Account. Another option would be a short term CD (Certificate of Deposit). A short term CD will "lock" your money in until it matures (3 - 9 mos) and pay you a guaranteed rate. Just remember that the funds will not be available to you without penalty until the maturity date is reached. Hope that helps!

Answer 4

Of the two savings is the way to go. If you want to get more for the money then check with the bank about an IRA. Savings will pay a little in interest but a six month or one year IRA will pay back a little more than the savings.

Answer 5

savings. Some stores do not take checks from minors. They can not hold a minor responsiblefor a bounced check. So it could fall on the parents.
also most savings have better interest rates than checking
Also as you drive to the bank to withdraw from savings it can give you a second chance to decide if you really need that neon green shirt for only $100.00
I would say do not get a debit card, it could be to tempting
you sound pretty smart though and looking out for yourself

Answer 6

You may want to keep the bulk of your money in the savings and just leave a little in the checking for your day to day expenses. But keep in mind that usually you can only take the money out 3 times a month without being charged.Email me if you need any thing else !

Answer 7

Buddy, I paid for school myself and I have to tell you that your savings will not last through your first semester. Don't worry about it. You're going to be up to your watchamacallits in debt before you graduate, and that's OK. Do what you think is best. The interest rate between checking and savings will not matter for the amount of money you can save. My advice to you is to hit the books and pray for a scholarship. Good luck!

Answer 8

Savings will give you a higher interest return. Checking accounts aren't really there to make you money.

Answer 9

Savings.
1st. You will be less tempted to spend it.
2nd. You will earn interest. (Any little bit helps)
3rd. Check with banks in your area. Some have "special" accounts for students and maybe better interest if it's for college.

Answer 10

I would have to say a savings account...especially if your saving for your education.I've always been very good with my checkbook but somehow the bank always manages to send me overdrafts. it seems once you get in the hole, its really hard to get out of. With a savings, you won't never have that problem!