College & College Alternative Saving Plans
Here are a few ways to get started:
Youth Savings Accounts: An easy way to get started with smaller upfront deposit requirements, low to no fees, while still earning interest in most cases.
Learn more about Bank of Ann Arbor’s Youth Savings Account option
Certificate of Deposit: Grow your savings faster with typically higher interest rates compared to Youth Savings accounts. It’s important to know these accounts often require a larger deposit to open and carry penalties if the money is withdrawn prior to the date of maturity.
Learn more about Bank of Ann Arbor’s Certificate of Deposit options
529 College Savings Plans: Benefits are unique to each State, and some include tax advantages on the investment earnings. Contributions to a 529 plan are invested and the use of those earnings are restricted to certain education expenses.
Guided Investment Accounts*: Provide flexibility if earnings may be used for other life events or coming-of-age expenses. These types of accounts do not offer similar tax advantages of some 529 college savings plans.
Trust Accounts**: A solution to fund educational costs of family members while supporting future estate tax planning strategies. Contact our Wealth Management Group at 734.662.4910.
Learn more about Bank of Ann Arbor Trust Services
Want to talk through options and create a plan for your family, together?
Contact Us - We love to help.
Other options to consider:
Roth IRA Accounts: Retirement funds in a Roth IRA can also be a resource for paying education costs prior to your retirement. Withdrawing money for college is one of the few reasons you can take money out prior to retirement and avoid certain tax penalties. You can then use what’s left when you’re ready to retire.
*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).
Insurance products offered through LPL Financial or its licensed affiliates. Bank of Ann Arbor and BOAA Financial Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using BOAA Financial Services and may also be employees of Bank of Ann Arbor. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Bank of Ann Arbor or BOAA Financial Services. Securities and insurance offered through LPL or its affiliates are:
Not Insured by FDIC or Any Other Government Agency
Not Bank Guaranteed
Not Bank Deposits
or Obligations
May Lose Value
***Prepared by Broadridge Advisor Solutions
**Investments are not FDIC insured and are not guaranteed by the bank. Investments may lose value. Investments can be subject to volatility of the financial markets in the U.S. and abroad. Performance results are subject to market conditions. Past performance is no guarantee of future results.
