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 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 $250,000 per depositor through December 31, 2013.
- 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 the
InvestorSure CD was available, the previous 80 maturing CDs (ending May 2, 2010) would
have produced an average annual percentage yield (APY) of at least 4.68%.
| InvestorSure CD: 20- 10- and 5-Year Historical Rates of Return** with Avg. APY at 85% |
| Issue Date Range |
Maturity Date Range |
No. of CDs |
Avg. APY of Every Maturing CD Over Date Range |
Taxable Equivalent Earnings*** |
| 8/85-5/05 |
8/90-5/10 |
80 |
4.68% |
6.50% |
| 8/95-5/05 |
8/00-5/10 |
40 |
3.44% |
4.78% |
| 8/00-5/05 |
8/05-5/10 |
20 |
2.06% |
2.86% |
*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.
** 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.
***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 $1,000 or more will
automatically purchase an InvestorSure CD.
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. The InvestorSure CD protects
your child's college investment, or your retirement and therefore safeguards the
future. Losing principal in the stock market is a real risk, but not with the
InvestorSure CD.
Page Links:
- Enroll Online - InvestorSure CD Disclosure - Products