Investment Tips for College Students

There is some variety of potential investments for students. Some banks have more specific student accounts, while other less specific investment options may also be worth noting. While potential investments can vary depending on country, these are a few recommended investment options for students in the UK or US.

Easy Access Saving Accounts:

The easy access saving account is the first investment option worth noting. These are recommended firstly because they will provide students with some extra capital, via their interest rates. Admittedly, they may not have absolutely the highest rates of interest but the easy access saving accounts have the additional advantage of being easy access. As such, withdrawals can be made any time students wish. Therefore, they are fairly flexible in this respect.

UK Cash Individual Saving Account:

In the UK, the Cash ISA is not really that much different from the easy access saving account. Many Cash ISAs are easy access, but they are also tax-free investments. As such, this is an advantage. Cash ISAs also have a maximum deposit of some £3,600 for the saving accounts. In addition to this, there is also a stock and share option available. Some of these may even provide monthly interest, although most return interest annually.

Student Bank Accounts:

Student bank accounts are accounts tailored towards students. As such, investing in student bank accounts may be more obvious. Admittedly, these student bank accounts can vary somewhat. However, most will have a number of student bonuses and discounts, and may also have interest-free overdrafts. Interest rates with these accounts will also vary, some may be good but others may not compare that well with some of the best saving accounts.

Short-term Certificate of Deposit accounts:

Certificate of Deposits, abbreviated as CDs, are a good investment option in the US. These are better for larger deposits, and are flexible in that they allow for the investment to be locked for a period that best suits the investor. They can also have higher rates of interest (which are usually fixed) than average saving accounts.

So, these are a few good investment tips for students. With these investments, such as easy access saving accounts, and CDs, students can invest and gain interest on their capital. Such investment options are also easier access, and so withdrawals can be made. In addition to this, student bank accounts will likely have some great student bonuses, provide some interest, and also have interest-free overdraft options.