Need help with 5000 dollars! Where to put it.

[PRICEPLUS]

Well, I moved 5000 dollars out of my daughters passbook saving account. It is all the money she has saved over her lifetime. I left 783 dollars in the account for whatever she needs.

My daughter cannot open her own ING or Emigrant account so I will open under my name and call it DDs Name fund. The way I see it she can 1) get more interest and 2) the money will not be counted as hers on the College FAFSA Forms.

Did I do the right thing and is ING or Emigrant the right place to put it? Your suggestions and advice would be greatly appreciated. By the way she statrs college in about 2 1/2 years.

[Snoopy2645]

I would put it in a high interest cd thats my only advice I did that with my kids savings accounts they earn much more by doing that

[Raisecapital01]

I thought that was a great idea.

[safari]

I'd put it in a high interest savings account. There are several banks offering better rates than ING and Emigrant, at least 5.20% or more. Another option is to open a CD account, for example, a 6 month CD at IndyMac Bank @ 5.45% APY link.

[Ima saver]

I think you did the right thing!

[sweeps]

How about a 3-year PenFed CD @ 6.25%? More info

[vsjhoc]

Originally Posted by Sweepsplayer

How about a 3-year PenFed CD @ 6.25%? More info

Sounds good except that the tuition bill is due before the CD matures.

[Cheetahwoman7]

Originally Posted by vsjhoc

Sounds good except that the tuition bill is due before the CD matures.

Couldn't they front their daughter the tuition, then pay themselves back (plus interest) when the CD matures? What will the difference in interest be over the course of the two and a half years from one of the other accounts mentioned and this high paying CD? Is it worth fronting the money?

CJ

[sweeps]

In my experience, college students have enough money to get by their freshman year of college (because of high school graduation money, etc.). It's the next 3 years that they're flat broke.

[vsjhoc]

Originally Posted by Sweepsplayer

In my experience, college students have enough money to get by their freshman year of college (because of high school graduation money, etc.). It's the next 3 years that they're flat broke.

And in debt.

(I don't think this will happen to PricePlus' daughter!!!)

[PRICEPLUS]

My DD in debt? Not if I can help it. I went with the Emigrant Account. I felt more comfortable with the liquidity.

[HalMd]

Send it to me. I will keep it for you.

[PRICEPLUS]

Thanks! I got this one!