How to Make Your Loan Money Work for You

If you’ve been awarded a subsidized loan and you’re not quite sure that you’ll need it, accept it anyway. A subsidized loan means that the federal government will pay the interest on your loan while you are in school and up to six months after you graduate. By opening a high yield savings account, you can earn interest on the loan money while the government defers interest fees. Never let your money sit in a regular savings account. You will miss out on a lot of interest payments.

So if you’re fortunate to have any extra funds from scholarships, grants, and subsidized loans, deposit the money into a high yield savings account. After the deferment period on your loan ends, simply pay back the loan in full. In time you spent in school, you could make hundreds of dollars in interest alone.

So where do you open one of these savings accounts? Well, I’m here to let you know that ING Direct has made making money on your savings that much more profitable. They are giving $25 frsee to anyone that opens an Orange Savings Account. Just use this referral link, open an account with a minimum of $250 for a least a month and the $25 is yours. But the 25 dollars isn’t the only reason to open an ING Direct account. Here are some extra benefits:

You will earn 4.50% Annual Percentage Yield (APY), one of the highest rates in the nation. Traditional savings accounts earn on average 0.25% APY which is far less than a tenth of an Orange Savings Account. Instead of making pennies on the money in your savings accounts, you can start making dollars.

Since your Orange Savings links to an existing checking account, you don’t have to switch banks.

There are no fees, service charges, or penalties on an Orange Savings Account.

There are no minimums (besides the initial $250 deposit to get the bonus). You will earn 4.50% APY on your savings no matter how much is in your Orange Savings Account. This is great for students who may not always have a lot of money in the account. You will never be penalized for falling below a minimum since there are no minimums.

Your money is safe because its FDIC insured. That means your money is insured up to $100,000 for each account you maintain.

You can make deposits and withdraw funds between banks online and over the phone.

Being a student is the best time to learn how to be financially responsible and ultimately independent. Get in the habit of saving money and making money on your savings. Open an ING Direct Orange Savings account and let your money work for you.