College Savings Bank Extends Contract With the Arizona Family College Savings Program
Arizona’s state-sponsored 529 plan has a home with College Savings Bank for seven more years.
(Princeton, NJ - December 15, 2009) - The Arizona Family College Savings Program (AFCSP) has had a successful 10-year relationship with College Savings Bank and has recently signed a new 7-year contract that will continue this partnership through 2016. College Savings Bank is dedicated to maintaining the AFCSP as the gold standard among state-sponsored college savings programs within the nation. The Bank is pleased to provide Arizona families with FDIC-insured investment options until at least 2016.
529 plans are beneficial for Arizona families because deposits are tax-deductible, earnings grow tax-deferred and principal and earnings are distributed on a tax-free basis when used to pay for qualified college expenses.
Arizona tax-payers are entitled to a $750 deduction to gross income per taxpayer, or $1,500 for those married, filing jointly - based on contributions to any state-sponsored 529 plan, including Arizona’s state-sponsored 529 plan the AFCSP.
College Savings Bank offers 3 different types of college saving CDs, including the CollegeSure CD, the InvestorSure CD and a suite of Fixed Rate CDs. The CollegeSure CD is a variable rate CD indexed to a measure of college inflation. The InvestorSure CD is a 5-year certificate of deposit indexed to the S&P 500 based on a formula, providing investors with the upside potential of the stock market without the risk of principal loss when held to maturity. The Bank also added competitively priced Fixed Rate CDs in 2008 with 1- and 3-year maturities. Each CD features principal protection and FDIC insurance up to $250,000* per depositor.
College Savings Bank, which began operations in September 1987, has been helping families fund education for more than 20-years. While market conditions are affecting us all, on behalf of the AFCSP, it has been a pleasure to inform all Bank customers that their money is FDIC insured, principal is protected and their child’s future has, is and will always be safeguarded. During 2009, the average CollegeSure CD account holder received a 3.16% rate of return.
With the AFCSP, College Savings Bank strives to accomplish the mission of the program, “To assist Arizona families to financially prepare for postsecondary education by providing quality college savings choices.” With dedication from College Savings Bank and the unique and innovative product options, the AFCSP can help families everywhere save for higher education expenses.
*Member FDIC. FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.
Before investing in any 529 plan, you should consider the benefits of your home state’s 529 plan. It may provide taxpayers with state tax and other benefits that are only available through your home state’s 529 plan. You should also consult your financial, tax, or other advisor to learn how state-based benefits (or limitations) would apply to your specific circumstances. You also may wish to contact your home state’s 529 plan[s], or any other 529 college savings plan, to learn more about those plans’ features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision. Early withdrawal tax penalties apply and non-qualified withdrawals are taxable. The College Savings Bank 529 Plan is not insured by the State of Arizona. Neither the principal invested nor the investment return is guaranteed by the State of Arizona. ©2009 College Savings Bank. All rights reserved. CollegeSure and InvestorSure are registered service marks of College Savings Bank. S&P 500 is a registered trademark, used with permission, of The McGraw-Hill Companies, Inc. Read the 529 Plan Disclosure Statements carefully before you invest or send any money.
This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal,
state, or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s)
addressed by this material. College Savings Bank and its affiliates and respective representatives do not provide tax,
accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an
independent tax advisor.