The InvestorSure CD
The InvestorSure CD is a variable rate certificate of deposit indexed to the Standard & Poor’s 500 Composite Index. Unlike many investments, the InvestorSure CD does not risk principal.
Should the value of the S&P 500 decline over the investment period, you will receive your full investment back at maturity. Investments held to maturity will also receive at least 85 percent of the average increase in the S&P 500 based on a formula*.
InvestorSure CDs are issued exclusively by College Savings Bank.
- FDIC insured to at least $100,000 per depositor, so your principal is protected.
- tax-deductible for Montana residents. Deduct the amount of your contributions from Montana taxable income up to $3,000 per taxpayer ($6,000 for married couples filing jointly).
- tax-advantaged. Whether you live in Montana or not, your earnings grow tax free and when the time comes to use the money for college, earnings distributed to pay qualified higher education expenses are also income tax free.
- affordable with multiple deposit options. You can mail in deposits of as little as $500, or sign up for a direct deposit program. Direct deposits from your bank or brokerage account are as low as $250 a month. Payroll direct deposits are as little as $100 per pay period. Investors must contribute at least $1,000 to purchase an InvestorSure CD.
- free of enrollment fees or other management charges that may erode your investment.
- designed for families that value hard earned money. The InvestorSure CD protects your child's college investment and therefore safeguards their future. Losing principal in the stock market is a real risk, but not with the InvestorSure CD.
- offered with a 5-year maturity. At maturity, you can use the funds to pay qualified higher education expenses, re-invest in another InvestorSure CD, or move the funds to a CollegeSure CD until your child is ready to pay for school. Early withdrawals are permitted once a year, but a 10% principal penalty will apply in addition to penalties imposed by federal and state income tax law or regulation.
- historically profitable. While historical rates of return are never a guarantee of future performance - if the InvestorSure CD was available, the previous 80 maturing CDs (ending May 2008) would have produced an average annual percentage yield (APY) of at least 5.40%.
- safe, affordable and offering the rewards of the stock market, without the risk of principal loss.
The InvestorSure CD will be issued 4-times a year, but College Savings Bank will 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. InvestorSure CDs will pay, based on a formula, between 85 and 100% of the increase in the S&P 500 at maturity; featuring a calculated average of 20 quarterly measurement points throughout the term of the CD. The averaging further protects your investment from wide swings in the S&P 500 as your investment approaches maturity. The 85 to 100% participation rate will be announced on the day the CD is issued. Had the InvestorSure CD been available, the chart below demonstrates the average annual percentage yield (APY) of all of the InvestorSure CDs maturing within the time frames noted..
According to the U.S. Census, in 2004 the average weekly income of a college graduate was 80% higher than a high school graduate. In addition, the high school unemployment rate was 5.5% in 2003 while those with a Bachelor’s Degree were unemployed at only a 3.3% rate. Over a 40-year career the difference in earnings can be as much as $1.70 million between a high school graduate and a college graduate assuming a 3% annual salary increase.
Save for a child's entire education or just a portion. It's up to you. InvestorSure CDs offer the rewards of the stock market without the risk.
* The formula used to determine the upside payment of each InvestorSure CD is explained in the Terms and Conditions within the Disclosure Statement .