The InvestorSure CD offers the upside of the S&P 500 without risking principal.
Should the value of the S&P 500 decline over the investment period, the
InvestorSure CD returns full principal at maturity. Investments held to maturity will
also receive at least 70 percent* of the average increase in the S&P 500 (based on a
formula(1)).
InvestorSure CDs are:
- issued exclusively by College Savings Bank.
- FDIC Insured to at least $250,000 per depositor .
- offered with all of the features and tax benefits of a 529 Plan, IRA or
ESA.
- tax-deductible for Montana and Arizona residents through our 529 Plans as well
as residents of Maine, Kansas, Pennsylvania and Missouri.
- affordable with multiple deposit
options.
- free of enrollment fees or other management charges.
InvestorSure CDs are 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.
While historical rates of return are never a guarantee of future performance - if
InvestorSure CDs were available, the previous 80 maturing CDs (ending November 1, 2012) would
have produced an average annual percentage yield (APY) of at least 3.47%.
| InvestorSure CD: 20- 10- and 5-Year Historical Rates of Return with Avg. APY at 70%(2) |
| Issue Date Range |
Maturity Date Range |
No. of CDs |
Avg. APY of Every Maturing CD Over Date Range |
Taxable Equivalent Earnings(3) |
| 2/1/1988-11/1/2007 |
2/1/1993-11/1/2012 |
80 |
3.47% |
4.82% |
| 2/2/1998-11/1/2007 |
2/3/2003-11/1/2012 |
40 |
1.03% |
1.43% |
| 2/3/2003-11/1/2007 |
2/1/2008-11/1/2012 |
20 |
1.21% |
1.68% |
Note:
(1) InvestorSure CDs will pay, based on a formula, between 70 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 current participation rate is 70%.
(2) The InvestorSure CD was introduced to the market on February 1, 2008. Historical
analysis is purely hypothetical and applies the current product upside
payment formula to a period of time in which the product was not available.
(3) Taxable equivalent analysis assumes the investor is within the 28% federal income tax bracket.
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 Accumulator
account until issue date. Accumulator accounts with a balance of $250 or more will
automatically purchase an InvestorSure CD.
For more information, view the
InvestorSure CD Terms and Conditions.