Tips # 27-28: When you save the interest is paid to you

September 29, 2013

Tip #27: Have complete security of your 529 account
Security is of the utmost importance when opening a college savings account. As an account owner you are in complete control of your account, including changing beneficiaries, timing and payees of distributions, investment selection and funding method.

Tip #28: Saving is better than borrowing: If you save $200 a month for 4 years at 6.8% simple interest, you’ll accumulate about $10,253. If you were to borrow this money instead of saving, you’d pay $245 a month for 4 years at 6.8% simple interest, totaling $11,760. When you save, the interest is paid to you, while when you borrow, you pay the interest.