College Savings Bank, a Division of NexBank SSB 529 Plans Receive Top Ranks in FDIC-insured 529 Plan Study

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Oct 02, 2017, 05:03 ET

DALLAS, Oct. 2, 2017 /PRNewswire/ -- In a study¹ of FDIC-insured 529 college savings plans, College Savings Bank, a Division of NexBank SSB (CSB) had both of its plans rank No. 1 in certificates of deposit² and No. 2 in savings accounts by Annual Percentage Yield (APY), net of industry fees. The study, which was conducted by SavingForCollege.com, ranked 23 FDIC-insured plans nationwide including CSB's Arizona Family College Savings Program-Bank Plan and Indiana CollegeChoice CD 529 Savings Plan.

Effective as of July 13, 2017, the APY³ on CSB's savings account offerings improved from 0.90% at the time of the study to 1.05%. Compared to the 529 college savings plans recorded in the study, CSB's plans are now the highest ranked in the nation by APY, net of industry fees, in both the savings account and certificates of deposit categories.

CSB is the program manager for the Arizona Family College Savings Program-Bank Plan and Indiana's CollegeChoice CD 529 Savings Plan, both available nationwide. CSB's products are FDIC-insured and feature no fees:

Savings account with a variable rate (currently 1.05% APY³)
Range of fixed-rate certificates of deposit

3-year certificate of deposit (1.55% APY³)
2-year certificate of deposit (1.45% APY³)
1-year certificate of deposit (1.25% APY³)

The full study can be read at: www.savingforcollege.com/articles/new-study-fdic-insured-529-plans-1081. The data and figures are as of April 30, 2017.

About College Savings Bank, a Division of NexBank SSB

College Savings Bank, a Division of NexBank SSB (CSB) is the program manager for the unique FDIC-insured Arizona Family College Savings Program–Bank Plan and Indiana's CollegeChoice CD 529 Savings Plan (both offered nationwide). Focused on college savings since 1987, CSB provides FDIC-insured CD investment options and a high-yield savings account without charging any fees. Learn more at www.collegesavings.com and www.collegechoicecd.com.

1) "New study: FDIC insured 529 plans." SavingForCollege.com, August 10, 2017. www.‌saving‌for‌college.com‌/‌articles‌/‌‌new-study-fdic-insured-529-plans-1081. Accessed October 2, 2017. "FDIC-insured products in the 529 marketplace." SavingForCollege.com, June 2017. http://webresources.savingforcollege.com.s3.amazonaws.com/‌documents‌/‌‌FDIC-insured-products-in-the-529-marketplace.pdf. Accessed October 2, 2017.

2) Under the same maturity term(s)

3) APY: Annual Percentage Yield. Rates are effective as of October 2, 2017 and are subject to change at any time without notice. The minimum initial contribution or deposit is $250 for enrollment. If you do not intend to contribute $250 at one time for enrollment, you may contribute $25 per month if you use an Automatic Clearing House (ACH) Plan or $25 per pay period using payroll deduction. The APY of the Honors Savings Account or Certificate of Deposit, under the APY selected at enrollment will be applied to your account, starting at a minimum balance of $25. Other terms and conditions apply. The bank reserves the right to cancel or modify this offer at any time. Certificates of Deposit are subject to early withdrawal penalties, which could reduce earnings on the account.

The Federal Deposit Insurance Corporation (FDIC) generally insures, with respect to each FDIC-insured institution, deposit accounts that are held in the same right and capacity up to the maximum amount set by federal law, currently $250,000. An account owner's interest in the insurable balance of a CSB CD account is insured by the FDIC on a pass-through basis, together with any other deposit accounts the account owner holds at CSB in the same right and capacity, up to the maximum amount.

NexBank SSB and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

NexBank SSB is a member of the FDIC.

SOURCE NexBank