Whether you are a parent or a child, a common worry is how you are going to pay for college? Getting an education is expensive, but the SMART Savings account offered through Ultima Bank of Minnesota can make it easy to save up for college. Ultima Bank is offering one of the highest savings rates of 2011, making saving for college simple, rewarding, and hassle free.
SMART Savings
SMART savings stands for: School Money At Right Time. This savings account is designed for anyone who is 18 years old, or younger. The APY on this account is at 2.02%. That is an outstanding APY for a savings account and can help you save more money for college. There is no minimum balance required to open the account, or a minimum monthly balance to keep the high savings account rate. No specified amount of money must be deposited into the account each month. You can choose the amount you decide to deposit and when you want to deposit it.
Direct deposits into the SMART savings account are free, and the statements will be sent electronically, through their website, an email, or a fax.
All electronic withdrawals are free of charge, however, if money is withdraw manually, the first two withdrawals are free of charge, but any additional withdrawals will cost $1.00 per withdrawal. There are no transfer fees, until after the account holder turns 18. Then, they are limited to six withdrawals or transactions per month. If more withdrawals are made, a fee will be charged.
This account acts as a CD in the fact that if money is withdrawn before their 18th birthday, they may be charged six months worth of interest. The SMART savings account is set up to work with the Student Checking account. This encourages children to keep money in the savings account, gaining as much interest as possible, and helps them learn the importance of saving their own money.
Ultima Bank of Minnesota is an FDIC insured bank, which means your SMART savings account will be protected.
Since the SMART savings account is for anyone 18 years or younger, they will only receive the 2.02% APY until their 19th birthday. After they turn 19, the account will be rolled over into a regular savings account with Ultima Bank. But, it will be hard to find a savings account that offers this great of an interest rate. This account is an awesome way to get starting saving money for college.
Rates are always changing, view today’s best money market rates here
