I am a student. I want to open a CD account Will it affect financial aid does it worth it since it is taxable

Answer 1

Here's a thought--if you invest any savings in savings bonds, the interest may be declared yearly or when you cash the bonds.

Answer 2

If you're a student you probably don't have much income, so you won't pay too much in taxes on the CD interest.

The CD itself might not affect your financial aid, but when you apply for aid they ask you how much money you have saved. If you have some, they will give you less aid and expect you to pay the difference out of your savings.

Answer 3

not really since it's taxable you're going to get a lot taken out for taxes. You should start a growing life policy, don't worry it isn't only for when you die.... If you start a life policy that grows you put your normal monthly payment down plus extra on top and the extra saves up with interest and you can pull it out with no taxes. Another benefit is since you're young its so easy to get a life policy and if something happens to you, your family will be able to pay off your student loans and whatever debt you may incur as a student. Another reason its good when you're young is that you are pretty healthy, if in 5 years you have a heart problem or major surgery you won't qualify for life ins then when you are married with children. Good luck hope I helped, sorry don't mean to sound like a sales person.

Answer 4

Don't see how it would affect financial aid as long as the information you provided in the first instance is accurate. And, hey, you would be paying taxes on your capital gains. You WILL be making a profit, no matter.