Earn Higher Interest on CollegeSure CDs
Effective on deposits received at College Savings Bank on or after February 1, 2006, CollegeSure CDs pay up to 1.50% more each year than CDs issued since August 2003. The annual percentage yield (APY) over the term of each new CollegeSure CD is not less than the college inflation rate less a 1.50% margin (the previous margin was 3.00%) - new CollegeSure CDs still have a 2.00% floor. Of course, the CollegeSure CD continues to offer all the other features you want most in a college savings plan:
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Peace of Mind: The CollegeSure CD provides the unlimited upside guarantee to meet future college costs no matter how high those costs climb.
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Safety: The CollegeSure CD is FDIC insured - backed by the full faith and credit of the U.S. Government up to $100,000 per depositor - and has been awarded the highest credit rating from Standard & Poor’s Corporation*.
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Tax Advantages: Currently, every dollar you earn in our 529 and IRA plans grows tax deferred or tax free. So no matter which plan you choose, you’ll be able to reach your college savings goals faster due to the benefits of tax-advantaged accumulation.
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Maturities: Range from one to 22 years.
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Direct deposit: Customers never need to worry about writing checks to contribute to their account.
Why Saving Now Makes Sense
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Over the last 10 years the College Board’s
Independent College 500 Index (“IC 500”) has increased per year on average 5.09% - more than double the general inflation rate of 2.44% based on the Consumer Price
Index produced by the Bureau of Labor and Statistics on July 31, 2005.
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In 2005, according to the IC 500, the college inflation rate was 5.62%. The
2006 inflation rate will be announced on July 31, 2006.
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College inflation has not been less than 4% in more than 30 years and has averaged 6.83% since tracking began in 1958.
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In 2005, the average cost of one year’s undergraduate tuition, general fees, room and board at selected four-year independent colleges in the United States, as measured by IC 500, was $31,465. Thus, if your child were entering college today, a four-year degree would likely exceed $125,000. Just ten years ago that same degree would have cost $80,500.
Start Saving Today
To take advantage of the new higher yielding CollegeSure CD, simply mail your
deposit today. New terms and conditions
are included with each deposit confirmation. Download a deposit slip from our
Web site or call a College Savings Adviser
at 800-888-2723 to enroll in direct deposit.
College Savings Bank has direct deposit
plans starting at $100 a month from your
bank or brokerage account and payroll
direct deposits are as little as $50.