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Saving for College with a College Fund CD

One of the best ways to save for the future is to start saving right away.

One of the best ways to save for the future is to start saving right away. At Fidelity Bank & Trust, we like to make saving for big expenses, like college tuition, easier for our customers! Stacie Sullivan, Assistant Vice President – Retail, shares how a College Fund CD can help parents and students with the expense of schooling!

“Fidelity Bank & Trust’s College Fund CD is an actual certificate of deposit that we set up for younger people that matures on their 25th birthday,” explains Sullivan. “They can save the money until it matures, or they can take money out at age 16 with no penalty, up to three times per year.”

The College Fund CD is a great option for saving for this education milestone because it offers a higher rate than just a regular savings account.

“By paying a bit more interest than a traditional savings account, we’re able to help students save more money over the long-run,” says Sullivan. “Another great thing about the College Fund CD at Fidelity Bank & Trust is that the student is not required to use the funds for college. If life plans change, that money can still be used for other expenses in the future, without the regulations and requirements of a government loan product.”

Whether you’re a parent, grandparent or a future student yourself, a College Fund CD, can help you save for the next chapter of your education, or your life.

“We’ve seen grandparents who will open up a College Fund CD for their grandchildren, and when they turn 18, they will cash it in and give the child money to help toward college,” explains Sullivan. “You can open the CD right within the bank, rather than doing savings bonds online and put things like birthday money into the account on a regular basis just by stopping into the bank!”

Ready to start saving for college? Consider our College Fund CD to make it easy!

“At Fidelity Bank & Trust, we really get to know our customers and understand their needs. We’re ready to provide excellent customer service to help them reach their financials goals.”

To open a College Fund CD, one person over age 18 is required as joint owner or agent status.

The funds are accessible at the age of 16 and the account matures when the child reaches the age of 25. Three withdrawals are allowed per year after age 16 and any additional withdrawals will be subject to a 6 months interest penalty. If the funds are withdrawn before age 16, a 6 months interest penalty will apply. If there are funds in the account after age 25, the funds will remain in the account without accruing additional earnings. Interest is compounded and credited semi-annually.