Is it leagal to put monies from loans into a CD? I got a student loan for the year, but I've only paid half my tuition (for the semester) and I was wondering if I could put the other half into a CD to gain interest. But I don't want to go to prison
2007-09-02 04:47:38 · 2 answers · asked by wildchild 3 in Business & Finance ➔ Personal Finance
Contact the financial aid office at your college. Just make sure that there is a time limit to the CD so it will mature prior to your needing the money. Most CD's have a 20% penalty for early withdrawal. Try an interest bearing checking account. Search bankrate.com for different banks and rates. Go to customer service at a bank and ask them. It's not illegal to gain interest on the money but a CD is not the best idea in this situation since you have to pay the balance of the tuition soon. CD's are long term.
2007-09-02 04:57:21 · answer #1 · answered by Tellin' U Da Truth! 7 · 0⤊ 0⤋
No...but it is "legal".
Put it in to a high interest savings account (INGDirect, HSBC Direct, etc.) These accounts are FDIC insured and pay more than some CDs but you don't have to lock up your money any amount of time.
PS......please learn to spell before you get out of college.
2007-09-02 23:56:42 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋