If College Savings Bank, a Division of NexBank SSB does not receive instructions at maturity; we will take one of the following default actions: If the Beneficiary will be 17 years of age or younger by December 31 of the year in which the CD matures, we will transfer the matured funds d to a 1-year Fixed Rate CD under the then current terms and conditions for issuing Fixed Rate CDs; or If the Beneficiary will be 18 years of age or older by December 31 of the year in which the CD matures, we will hold the matured funds in a savings account until you provide distribution or other investment instructions.
Each InvestorSure CD pays a participation rate that is between 70-100% of the average increase in the S&P 500 from issue date to maturity and based on a formula. The exact participation rate of each CD will not be determined until the day the CD is issued. As an investor, you should assume that the rate is 70% when making your investment decision.
College Savings Bank, a Division of NexBank SSB uses a complex formula to determine the participation rate and it requires data only available on the day of issue. While we will always strive to offer the InvestorSure CD at 100% of the S&P 500, it is not reasonable to assume this can be done for every issuance of the CD.
College Savings Bank, a Division of NexBank SSB will provide written notification at least 60 days before the Maturity Date. Thereafter, you must provide written instructions at least 30 days prior to the Maturity Date if you would like the proceeds upon maturity of the InvestorSure CD to be invested other than in accordance with the Default Actions described in this document. If you provide us with instructions in good order, funds will be disbursed from your Account no later than the first Business Day following the Maturity Date.
Alternatively, you may choose one of the following alternative options at maturity: Transfer the matured funds to a CollegeSure CD; Transfer the matured funds to a 1- or 3-year Fixed Rate CD; Reinvest the matured funds in another InvestorSure CD under the then current terms and conditions; Rollover the matured funds to another qualified program; Hold the matured funds in a savings account; or Take a Qualified or Non-Qualified Distribution of the funds. NOTE: Any actions other than taking a Qualified or Non-Qualified Distribution or a default action stated above, could be considered your once per calendar year investment exchange as per 529 plan rules.