DALLAS, June 10, 2021 /PRNewswire/ -- In a study1 of FDIC-insured 529 college savings plans, College Savings Bank, a Division of NexBank (CSB) ranked first in the nation based on Annual Percentage Yield (APY) net of fees for Certificates of Deposit (1-, 2-, and 3-year maturity). CSB also had the second highest yield in the nation for savings accounts, based on APY net of fees.
This is the fifth consecutive year CSB received top ranks in the study. The study, which was conducted by SavingForCollege.com, a leading independent college savings resource and authority on 529 plans, compares yields of federally-insured investment options offered by thirty-one 529 plans in the nation.
CSB is the program manager for Arizona's Bank Plan and Indiana's CollegeChoice CD 529 Savings Plan, both available nationwide. CSB's products are FDIC-insured, have no fees and provide tax benefits. CSB offers a savings account with a variable rate (0.64% APY2) and a range of fixed-rate certificates of deposit – 3-year certificate of deposit (0.75% APY2), 2-year certificate of deposit (0.65% APY2), and a 1-year certificate of deposit (0.65% APY2).
The full FDIC-insured 529 Plan study can be found at https://www.savingforcollege.com/article/new-study-fdic-insured-529-plans. The data of the study is as of March 31, 2021.
About College Savings Bank, a Division of NexBank
College Savings Bank, a Division of NexBank (CSB) is the program manager for Arizona's Bank Plan and Indiana's CollegeChoice CD 529 Savings Plan, both offered nationwide. Focused on college savings since 1987, CSB provides FDIC-insured CD investment options and a high-yield savings account without charging any fees. Learn more at www.collegesavings.com and www.collegechoicecd.com.
1) "New Study: FDIC-Insured 529 Plans." SavingForCollege.com, May 2021. https://d3tc5xafqqxqk8.cloudfront.net/wp-content/uploads/2021/05/18110244/FDIC-Report-v2021_Final.pdf
2) APY: Annual Percentage Yield. Rates are effective as of June 1, 2021 and are subject to change at any time without notice. The minimum initial contribution or deposit is $250 for enrollment. If you do not intend to contribute $250 at one time for enrollment, you may contribute $25 per month if you use an Automatic Clearing House (ACH) Plan or $25 per pay period using payroll deduction. The APY of the Honors Savings Account or Certificate of Deposit, under the APY selected at enrollment will be applied to your account, starting at a minimum balance of $25. Other terms and conditions apply. The bank reserves the right to cancel or modify this offer at any time. Certificates of Deposit are subject to early withdrawal penalties, which could reduce earnings on the account.
The Federal Deposit Insurance Corporation (FDIC) generally insures, with respect to each FDIC-insured institution, deposit accounts that are held in the same right and capacity up to the maximum amount set by federal law, currently $250,000. An account owner's interest in the insurable balance of a College Savings Bank, a Division of NexBank (CSB) CD account is insured by the FDIC on a pass-through basis, together with any other deposit accounts the account owner holds at CSB in the same right and capacity, up to the maximum amount.
NexBank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
NexBank is a member of the FDIC.
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