Should the CD maturities coincide with anticipated attendance at college or graduate school?

Yes. Maturities are available from 1- to 22-years. You should time your CDs to mature the years your child attends college and/or graduate school. In most cases, CDs are subject to early redemption penalties for withdrawals prior to maturity.


Can I obtain more than $250,000 of FDIC insurance coverage?

Yes. For 529 plan revocable trust accounts, the FDIC insurance coverage depends on the number of beneficiaries named by an owner and the amount of deposits. For example, a couple with two children may each set up a 529 account with each child as the beneficiary, and thus get a maximum of $1 million FDIC deposit insurance in aggregate.


For more information, view the CollegeSure CD Terms and Conditions.


Is my money safe?

Yes. Principal and interest are backed by the full faith and credit of the U.S. Government up to $250,000 for accounts held in the same right and capacity.


What interest rate will I earn?

CollegeSure CDs pay interest annually on July 31st each year they remain outstanding. The interest rate is equal to the prior year’s college inflation rate as measured by the College Board’s Independent College 500 index change less an issue margin, and is subject to a maximum interest rate which is equal to the first year’s interest rate plus an interest rate cap. The interest rate on the CollegeSure CD is reset annually on July 31 based on the change in the IC500 index. The issue margin and the interest rate cap are determined on the contribution date.

For the past 25 years, the annual college inflation rate as measured by the IC500 index has ranged from a high of 14.35% to a low of 4.15%. For the academic year 2013-2014, the IC500 index was 3.83%.


How is the CollegeSure CD priced?

View the CollegeSure CD Rates tab to see issue margins and interest rate caps for new deposits.


Can others contribute to my child's account?

Yes. Account owners can invite other family member and friends to contribute.


Must I select a college now?

No. Simply begin making deposits and on each confirmation notice we will report how much college you've prepaid. If you'd like to target a specific college, just call 1-800-888-2723 and we'll help you build a savings plan to meet your funding goals.

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