The InvestorSure CD from College Savings Bank is Now Available through the Arizona Family College Savings Program
The InvestorSure CD from College Savings Bank is now available through both the Arizona Family College Savings Program (AFCSP) and the Montana Family Education Savings Program (MFESP). With promising numbers within the MFESP already, the August 1, 2008 AFCSP launch of the InvestorSure CD will now help families save for higher education through the Arizona 529 Program as well.
With the introduction of the InvestorSure CD to the AFCSP, investors will be able to gain from the benefits of the stock market while avoiding any potential risk of losing principal. College Savings Bank realizes the different types of investors involved in the market and now offers this product as a great way to diversify a college savings account.
“We are happy to now be able to offer the InvestorSure CD to AFCSP customers and pass along the unique benefits of this product,” said Linda Green, AVP for College Savings Bank. “The InvestorSure CD’s unique blend of principal protection with a variable rate of return tied to the equity market is very attractive right now.” The InvestorSure CD is a variable rate certificate of deposit that offers the formulaic upside performance of the Standard & Poor’s 500 Composite Index (S&P 500), without downside risk. This product is truly unique, as it features FDIC insurance to at least $100,000 per depositor and protects principal when held to maturity.
In addition to offering the safety of FDIC insurance, the InvestorSure CD also provides tax advantages. Arizona Residents are entitled to a $750 deduction to gross income per taxpayer, or $1,500 for those married, filing jointly - based on contributions to the Arizona Family College Savings Program. Anyone can take advantage of the InvestorSure CD and any U.S. taxpayer can establish a tax-advantaged 529 plan through the AFCSP.
College Savings Bank issues InvestorSure CD 4-times a year (February 1, May 1, August 1 and November 1), but accepts deposits everyday for the investment. Contributions are held in an InvestorSure Accumulator account, with a current (APY) of 2.02%, until the CD’s next issue date. InvestorSure Accumulator Accounts with a balance of $1,000 or more will automatically purchase an InvestorSure CD on the next issue date. The InvestorSure CD through the AFCSP will be issued on November 1, 2008.
The rate of return for the InvestorSure CD is based on a formula that is tied to the average rise in the S&P 500 from issue to maturity (5 years). The InvestorSure CD allows college savers the potential to benefit from rises in the stock market, and still have the safety of FDIC insurance and principal protection. Should the S&P 500 lose value, the depositors holding InvestorSure CDs will be returned full principal at maturity.
While historical rates of return are never a guarantee of future results - had the InvestorSure CDs been available, the previous 80 maturing CDs (ending in May 2008) in the aggregate, would have produced an average annual percentage yield (APY) of at least 5.40%. InvestorSure CDs will pay, based on a formula, at least 85% of the average increase in the S&P 500 from purchase date to maturity (5 years). “We understand that money for college savings is not money families can afford to gamble with; this unique product was created with such families in mind,” Green continued.
A College Savings Bank customer since 1998 and conservative investor, Jyotsna Soman, feels the InvestorSure product is a way to diversify a college savings portfolio. “The InvestorSure CD is a means to diversify and potentially receive returns exceeding college tuition increases all while preserving principal,” said Soman.
The InvestorSure CD has already seen promising numbers with the Montana Family Education Savings Program (MFESP) in its short time of availability. First issued within the Montana 529 plan on February 1, 2008, this CD amassed $1 million in deposits on behalf of 159 account holders. The second issuance of the InvestorSure CD, on May 1, 2008, generated $2 million in deposits on behalf of 168 account holders.
College Savings Bank has been helping families save for college for over 20 years with products that concentrate on safety. To find out more about the InvestorSure CD or other available products, please call College Savings Bank at 1-800-888-2723 or visit our web site, www.collegesavings.com.