Second Offering of the InvestorSure CD from College Savings Bank nets $2 million in deposits
This unique certificate of deposit, tied to the equity market, helps families save for a future college education within a 529 plan.
(Princeton, NJ- June 3, 2008) – According to College Savings Bank, the InvestorSure CD is a hit with families saving for a future college education. Introduced to the 529 college savings plan world in December 2007, the InvestorSure CD, first issued on February 1, 2008, 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. The next InvestorSure CD will be issued on August 1, 2008.
“Our expectation is to continue to see deposit growth in this college savings vehicle,” 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 S&P 500, without downside risk. The InvestorSure CD features FDIC insurance to at least $100,000 per depositor and protects principal when held to maturity. 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.
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.
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.
While the InvestorSure CD may not attract every investor type, conservative investors such as Jyotsna Soman feel it is a way to diversify a portfolio.
“The Investorsure CD is a means to diversify and potentially receive returns exceeding college tuition increases all while preserving principal,” said Jyotsna Soman, a College Savings Bank customer since 1998.
For those interested in saving for other purposes, College Savings Bank has also launched a series of fixed rate CDs with very competitive rates of return. These CDs offer 1- and 3-year maturities and are open to all investors. Just the same as all College Savings Bank products, the fixed rate CDs offer principal protection and FDIC insurance.
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.
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 assists families across the country by offering safe and effective financial products to help meet the rising costs of postsecondary education. Meeting the actual cost of a college education is dependent upon the amounts deposited and the time periods for which deposits are held, among other factors. College Savings Bank is the exclusive provider of the CollegeSure CD and InvestorSure CD, innovative, unique, saving-for-college investments. Deposits are FDIC insured to at least $100,000 per depositor. College Savings Bank is a program manager to the Montana and Arizona qualified tuition programs. For residents of states other than Montana and Arizona, their state may offer state income tax benefits not available through the Montana or Arizona 529 Plans, respectively. Early withdrawal penalties apply. Please see the product Terms and Conditions for complete details. College Savings Bank can be reached online at www.collegesavings.com or by calling 800-888-2723.