College Savings Bank, which began operations in September 1987, has been helping
families fund education for more than 22-years.
Our mission.
"To be a partner to parents who are preparing their children for higher education.
We are in the financial business, but as a partner, we treat all of our beneficiaries
like family members - and in as such, deliver products and services to the market that
we would want as parents ourselves."
Our business.
The Bank originates and markets Certificates of Deposit (CDs) including the
CollegeSure CD and the InvestorSure CD. Each is an innovative, unique
saving-for-college investment featuring FDIC insurance up to $250,000 per depositor
and principal protection.
At College Savings Bank we believe our first priority is to preserve investor
assets, therefore protect a child's future. Our CDs guarantee principal at maturity.
And market conditions cannot affect the pledge we make to our families.
The Bank's success to date can be measured in part by its nationwide customer
base, its distribution arrangements with nationally recognized broker/dealers,
financial planners, employee benefit programs of national companies. Further, the Bank
is the program manager for tax-advantaged, section 529 programs such as the Montana
Family Education Savings Program and the Arizona Family College Savings Program which
are available nationwide.
Our creditworthiness.
The Bank is strongly capitalized and operates under a conservative investment
policy. On December 31, 2010 the Bank's Tier 1 capital-to-average asset ratio was 7.00%, as compared to the statutory minimum of 4.00%.
The Bank invests primarily in high-grade, adjustable-rate mortgage-backed
securities, the majority of which are guaranteed by the U.S. government or its agencies
as well as student loans through the Federal Student Loan Program. The Bank limits its
investments in this manner in order to avoid the types of credit risks that have often
financially impaired other banks. The Bank designs its investment portfolio and updates
that portfolio periodically to match the interest rate sensitivities of its assets and
liabilities.
A measure of the Bank's investment portfolio
is found in the Bank's Tier 1 capital-to-risk-weighted-asset ratio under the
FDIC's risk-based capital guidelines. On December 31, 2010 this ratio was 26.53%, as
compared to the statutory minimum requirement of 8.00%.
Our affiliation.
College Savings Bank is a member of the Federal Deposit Insurance Corporation, which
means that the Bank's deposits are insured by the Bank Insurance Fund of the FDIC
up to $250,000 per depositor.
The combination of FDIC insurance, the Bank's high Tier 1 capital-to-total-asset
and risk-based capital ratios as well as the Bank's conservative investment policy
ensures the safety of your deposits. We believe no other financial institution offers
its customers a more complete college funding solution.
December 31, 2010
Call Report
The Montana Family Education Savings Plan Helps Families Everywhere Save for Higher
Education
Any U.S. taxpayer, regardless of income, may establish a tax-favored college savings
account for anyone - including themselves, to help pay for qualified higher education
expenses. The program was established as a tax-advantaged state tuition program under
Section 529 of the Internal Revenue Code in 1996 and the benefits were made permanent
in 2006. There are no in-state use restrictions. Use the proceeds at any eligible
college, university, proprietary or vocational school worldwide.
- Higher education expenses include tuition, fees, textbooks, supplies and
equipment required to attend an eligible institution. If the student's enrollment
qualifies for at least half-time, room and board expenses are also eligible up to a
specified level.
- Eligible institutions include virtually all accredited, public, nonprofit and
proprietary postsecondary educational institutions.
Contact Us
College Savings Bank is here to help. We can be reached toll free at 1-800-888-2723 any Monday through Friday between the hours of 9 a.m. and 6 p.m. ET.
Our mailing address is:
College Savings Bank
PO Box 3769
Princeton, NJ 08543
E-mail us at: info@collegesavings.com
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