Preparing the Education Fund

In this modern era that quality education is an absolute necessity that must be met. Moreover, one higher education is still one of sizes in the achievement of his career. This resulted in the parents vying to provide that best education for their children.

Along with the desire to provide that decent education, the parents faced with the fact that increasing education costs jumped sharply along with the rising cost of living needs. Financial planning as well as possible and as early as possible is the best solution for children's education fund is not neglected.

There are several key factors that can be taken into consideration in preparing the child's education is, take the time as far as possible. The longer the time to save the smaller installments per month and eventually also lighter weight savers. Because it is advisable to save as early as possible.

The second factor is the consideration for the high interest on offer in order that the higher the interest rate provided the sooner the achievement of that desired fund.

The next factor is the existence of insurance protection to ensure the child's education fund with the aim of minimizing the uncertainty that might occur in the future.

The last factor and that is not less important is the flexibility of depositing and withdrawing funds. This last consideration to anticipate melesetnya our financial calculations or for other needs very urgent so that we can collect some of our funds. And otherwise we can contribute funds at any time such as when we get the bonus

It is not easy to determine the educational savings that can accommodate those needs. Moreover, some banks have launched the same product with different features offered. Customers had to be selective in choosing, check out the following tips to select the savings on insurance cover with

1. Do not influenced in an Education Savings Benefits of insurance for free!
   The presumption that a product that provides free insurance it will generate a higher investment balance is appropriate. However, in reality there is no insurance product that is completely free provided by the bank. To bear the risks of death from accidents customer / sickness, the bank must cooperate with insurance companies. No bank alone bear these risks because it is contrary to banking regulations.
   On the other hand, certain insurers will charge a premium / insurance costs. If insurance benefits are given free to the customer then will be charged to the bank. With the addition of this insurance premium, the bank will look at this premium as the cost of funds from education savings this product. Consequently, in an attempt to maintain profit margins, then the bank should reduce interest rates (interest rate) given to customers. So even if the insurance benefits provided by "free", but in the end customer is also paying the insurance premiums it is with the "reduction of interest rates" that have accrued to the customer.The concept that best to be clear between the magnitude of insurance premiums paid by the customer and insurance benefits to be gained customers. Maybe you can ask the question: from the concept of insurance that "free" is how the number of customer load (due to a reduction in interest) and how total insurance benefits during the period of deposit.
2. Select that offers the highest interest.
   Every customer would expect optimal results from investments / savings to them. Therefore, avoid a banking product that reduces the interest rate customers by offering free insurance premiums, because the longer the storage period of the savings the greater the loss / "opportunity cost" customers
3. Select education savings insurance coverage allows customers to stay focused on goals.
   The purpose of the customer have a is the achievement of education savings fund that can meet all your children's education needs of customers. So that the customer requires an assurance that the funds could be available for children's education customers in the event of claims. For that, you should choose that value of education savings insurance benefits are clear.
   Maybe we can ask the customer:
   • How much insurance benefits to be gained from education savings to another? Enough to fund children's education future customers?
   • Are customers will be protected by any risk of death / total permanent disability either by accident or disease and the start of protection when it starts?
4. Select education savings whose money is locked, except when it is due.
   Savings of education is to prepare educational products sons and daughters of the Customer. Customer must have a that separate product from other financial products so that customers that have prepared the funds will not be used up to meet other needs. That is, the Customer should not take these funds for purposes outside the education son and daughters of the Customer. But the wise if the Customer should lose access to these funds at all.
5. Select education savings that allows customers to save in a disciplined
   A good education savings products are products that can help customers to deposit and routinely through auto debit facility from the customer's account.
6. Select education savings that have a that fixed monthly payment flexibility ensures the achievement of the fund in the future.
   From time to time the cost of education is always increasing. Education savings that should be selected that have a the flexibility of customers is raising monthly payments in order to anticipate rising costs of this education. Saving a good education should also allow customers to deposit some funds into education savings accounts. Thus the adequacy of education funding held later, can be more assured despite rising costs of education.