A few days ago
wildchild

Is it leagal?

Is it leagal to put monies from loans into a CD? I got a student loan for the year, but I’ve only paid half my tuition (for the semester) and I was wondering if I could put the other half into a CD to gain interest. But I don’t want to go to prison

Top 6 Answers
A few days ago
Stephanie H

Favorite Answer

It is legal. Once the money has been disbursed to you, you can do with it as you please. To make putting it in a CD worthwhile though you need to be earning more interest than it is costing you having the loan. You might be better off paying for the spring semester as well, and then putting the remaining funds in a checking acct to be used as discretionary funds for the year.
1

A few days ago
golden rider
You can put it into a CD, but when you go to pull it out, you will have to pay taxes on it if you don’t leave it in the CD for the full 7 years. That is the idea behind the CD accounts. It is to allow the banks to use the money, and to pay you a higher interest rate for doing so. I don’t know all the details, but if you will go to your bank, I’m sure that they can shed more light on it that I can.
2

A few days ago
krvawt88
First answer… you are in college now, use your spell check. It’s legal. And if you aren’t sure, ask a bank or where ever you got the loan from.
0

A few days ago
$andman
as long as you fulfill the terms of the loan,it’s ok…I have $30k on a 7% equity line earning 13% in a health and drug mutual fund…
0

A few days ago
mokhkw
Most lenders don’t allow this but if the loan amount in in a savings account that you have access to they really can’t stop it.Check your loan agreement.
1

A few days ago
ogg08
it’s fine…
0