These resources may be helpful in getting a start on savings, but it is still vital to investigate all options and consult other resources that may offer assistance on how to set up a savings plan such as your local bank, credit union, savings and loan or financial planner. The units are applied in the future toward undergraduate tuition expenses. Up to 400 units may be purchased for a four-year education. Keep in mind, there is a minimum period of time that an account must be open before withdrawals are allowed. U.S. Savings Bonds are promises by the government to repay you with interest when the bond is turned in.
Bonds are federal government obligations and are therefore risk free.
Any bank can assist you in buying bonds and some employers have deduction plans. The bond earns a market-based rate of interest from the start and continues doing so for as long as 30 years. You may cash them in at any time at any bank, but the interest rate may be lower if redeemed before five years. For additional information contact your financial institution. Certificate of Deposits CDs are notes issued by a particular bank that guarantee payment of a fixed interest rate until the maturity date.