CollegeSure CD
The guaranteed way to save for college.®
The CollegeSure CD is a variable rate certificate of deposit indexed to college
costs and designed to meet the future cost of college. On July 31, 2009, college
inflation, as measured by the College Board's Independent College 500® (IC 500)
Index, was 4.28%. For the past 10-years, college inflation has risen twice as fast as
general inflation.
The CollegeSure 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.
- similar to a college cost prepayment product.
CollegeSure CDs are offered with the flexibility of 1 to 22 year maturities. They
are also affordable with with multiple deposit
options, including mail deposits of as little as $250, or direct deposits from your
bank or brokerage account as low as $100 a month. Payroll direct deposits are as little
as $25 a pay period.
| 5-Year Increase in College Costs |
|
|
|
|
|
|
| 2005/06 |
$31,465 |
$23,506 |
$13,397 |
$5,757 |
$41,606 |
| 2006/07 |
$33,270 |
$24,932 |
$14,478 |
$6,370 |
$43,740 |
| 2007/08 |
$35,272 |
$26,512 |
$15,634 |
$6,909 |
$45,853 |
| 2008/09 |
$37,208 |
$28,043 |
$16,465 |
$7,290 |
$47,626 |
| 2009/10 |
$38,799 |
$29,247 |
$17,137 |
$7,596 |
$49,443 |
Over the term to maturity of each CollegeSure CD, the APY is not less than the
college inflation rate less 3.00%. For the past twenty-five years, the annual college
inflation rate has ranged from a high of 14.35% to a low of 4.24%. For the last ten
years, the college inflation rate has averaged more than 5.00% a year.
Note: The following changes were made to the CollegeSure CD Terms and Conditions, effective July 1, 2010:
- CollegeSure CDs will be available at 1 to 22 year maturities.
- CollegeSure CDs with maturities less than 4 years will have a 0% floor.
- CollegeSure CDs with maturities of 4 to 22 years will have a 2% floor.
Page Links:
- Enroll Online - CollegeSure CD Disclosure - Products