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Summary: Three FDIC-insured options are offered in this 529 plan: (1) the CollegeSure CD with a variable interest rate pegged to a private-college tuition index, (2) the InvestorSure CD with an interest rate pegged to a percentage of the increase in the S&P 500 Index over a five-year period, and (3) fixed-rate CDs with one-year or three-year maturities. |
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Program type: Savings |
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Program manager: College Savings Bank |
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State residency requirements: None |
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Maximum contributions: Accepts contributions until all account balances in Arizona's 529 plans for the same beneficiary reach $340,000. |
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Minimum contributions: CollegeSure CD:
With lump-sum contributions, the minimum initial contribution is $250. With the automatic investment plan, the minimum contribution level is $100 per portfolio per month or $250 per quarter via bank transfer, or $25 per pay period via payroll deduction.
InvestorSure CD:
With lump-sum contributions, the minimum initial contribution is $500. With the automatic investment plan, the minimum contribution level is $250 per month via bank transfer, or $100 per pay period via payroll deduction. Deposits under $1,000 are held in an interest bearing savings account, and each time the balance reaches $1,000, a CD purchase is made.
Fixed Rate CDs:
With lump-sum contributions, the minimum initial contribution is $500. With the automatic investment plan, the minimum contribution level is $250 per month via bank transfer, or $100 per pay period via payroll deduction. Deposits under $500 are held in an interest bearing savings account, and each time the balance reaches $500, a CD purchase is made. |
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Age-based investment options: None |
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Static investment options: The interest rate on the CollegeSure CD is pegged to a private-college tuition index, less a 3% margin, not to fall below 2% annually. (If average private-college tuition increases by 6% over the term, the yield is 3%.) The InvestorSure CD has a five-year maturity, and earns interest tied to a percentage of the increase in the S&P 500 Index (between 85% and 100%). Fixed-rate CDs earn interest at the rate posted at the time of purchase, and posted rates may change at any time. |
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Underlying investments: FDIC-insured certificates of deposit from College Savings Bank. |
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Enrollment or application fee: None |
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Account maintenance fee: None |
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Program management fees: None |
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Expenses of the underlying investments: Not applicable, interest rate on CD is tied to a formula. |
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Total asset-based expense ratio: |
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Program match on contributions: None |
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State tax deduction or credit for contributions: In 2008 through 2012, contributions to Arizona and non-Arizona 529 plans of up to $750 per year for an individual taxpayer, and $1,500 per year for a married couple filing jointly, are deductible in computing Arizona taxable income. |
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Telephone: 1-800-888-2723 |
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Web site: Click here to visit |
