First InvestorSure CD Offer from College Savings Bank Sees Promising Numbers
A new, equity based CD that does not put your principal at risk, is now available through the Montana 529 College Savings Plan
2/13/2008 PRINCETON, N.J.--(BUSINESS WIRE)--New to the Montana Family Education Savings Program, the InvestorSure CD offers the upside of the performance of the S&P 500 without any downside. This unique product allows college savers to see the benefits of the stock market, with the safety of FDIC insurance and principal protection. As part of the initial offering, the InvestorSure CD attained assets exceeding $1 million in its first 7 weeks. College Savings Bank hopes to reach $10 million in assets by the end of 2008.
The Bank’s original product, the CollegeSure CD, is a name synonymous with safety. Like this product, the InvestorSure CD is offered without fees and principal is FDIC insured to at least $100,000 per depositor.
Had the InvestorSure CDs been available, the previous 80 maturing CDs (ending in Oct. 2007) would have produced an average annual percentage yield (APY) of at least 5.32%. InvestorSure CDs will pay, based on a formula, between 85 and 100% of the average increase in the S&P 500 from purchase date to maturity (5 years).
“The InvestorSure CD is perfect for those who are familiar with the advantages of the stock market, as well as the disadvantages of risking principal loss. This product will allow your principal to stay protected if there is a decline in the market, and allow your upside payment to grow in step with the S&P 500. It’s perfect for people who want to invest their money safely and wisely,” said Linda Green, AVP and College Savings Adviser.
The Bank will issue the CD 4-times a year and accept funds everyday for the investment. Contributions will be held in an InvestorSure Accumulator account, with an (APY) of 2.02%, until issue date. InvestorSure Accumulator Accounts with a balance of $1,000 or more will automatically purchase an InvestorSure CD.
For Montana residents, there is also a tax advantage. Residents can deduct the amount of their contributions from Montana taxable income up to $3,000 per taxpayer ($6,000 for married couples filing jointly). In addition, College Savings Bank offers multiple deposit options to make contributing to your account easy and convenient.
The second offering of the InvestorSure CD will be May 1, 2008. To find out more about the InvestorSure CD, please call a College Savings Bank Adviser at 1-800-888-2723 or visit our web site, http://montana.collegesavings.com.
With 21 years of experience, College Savings Bank, a division of Pacific LifeCorp, was founded to meet the education needs of parents. If you’re looking for an easy, affordable and reliable way to save for your child’s future education, the InvestorSure CD from the MFESP may be right for you.
About College Savings Bank
Founded in 1987, College Savings Bank is a member of the Federal Deposit Insurance Corporation (FDIC), and the first savings bank chartered by New Jersey since 1893. The Bank helps families across the country meet the rising costs of postsecondary education by offering safe and effective financial products. College Savings Bank is the exclusive provider of the CollegeSure CD, an innovative, unique, saving-for-college investment backed by the full faith and credit of the U.S. Government up to $100,000 per depositor. College Savings Bank is a program manager to the Montana and Arizona qualified tuition programs. College Savings Bank can be reached online at www.collegesavings.com or by calling 800-888-2723.