What goes into a college budget? Since higher education is more costly than ever, saving on tuition is a big concern for most parents and students. However, tuition isn’t the only area where families can save money. With smarter banking, even budgeting for smaller college expenses (groceries, textbooks, gas, etc.) can add up to big savings. But which account is best for you and your family?
We’re here to help you understand your options so you can make more informed financial decisions.
Demand Deposit Account (DDA)
A DDA with Lineage is a great starting point for students to manage daily purchases while living away from home. Think of a DDA as your standard checking account—you can withdraw, set up auto-pay on bills, and track your balance from the Lineage mobile app or website.
For students, a DDA takes the worry out of carrying cash for a night out or staying on top of recurring bills. Your student can easily use their debit card to make purchases because the money in their account is always available to them. Plus, you can also make immediate deposits for emergencies or to avoid accidental fees through our joint accounts.
Traditional Savings Account
What about parents who are planning ahead for college, or students who want to save summer wages? On top of using a DDA to track and manage spending, families can set up a savings account. Our traditional savings accounts also have competitive interest rates so you can earn interest on the money in the account.
The money in a traditional savings account can later be used for fees, books, housing, meals, supplies—whatever student needs to be successful. You can easily transfer funds from your savings to the checking in a click of button with our mobile banking.
Certificate of Deposit (CD)
Another way parents can plan ahead for college is with a CD. A CD with Lineage allows you to earn interest on the money you put away for college expenses for a fixed amount of time.
It’s slightly different from a traditional savings account because the money in the CD must remain untouched for the entire time or you could be charged penalty fees. This makes them a great option if you’re wanting to get ahead on saving for college expenses.
Whether your student is starting college in a few weeks or a few years, Lineage understands the importance of rooting your family in a bank you can trust. We’re here to provide you with flexible accounts to help meet your goals and set your family up for financial success. Come meet with one of our experienced bankers to see what account options are available to enhance your savings and how we can help make becoming an empty nester a little easier on everyone.