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 70 percent of the average increase in the S&P 500 (based on a specific formula(1)).
InvestorSure CDs are:
- issued exclusively by College Savings Bank as Program Manager for the CollegeChoice CD 529 Savings Plan.
- FDIC Insured to at least $250,000 per depositor.(2)
- affordable with multiple contribution
- 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
InvestorSure CDs were available, the previous 80 maturing CDs (ending November 1, 2012) would
have produced an average annual percentage yield (APY) of at least 3.47%.
|InvestorSure CD: 20- 10- and 5-Year Historical Rates of Return with Avg. APY at 70%(2)
|Issue Date Range
||Maturity Date Range
||No. of CDs
||Avg. APY of Every Maturing CD Over Date Range
||Taxable Equivalent Earnings(3)
(1) InvestorSure CDs will pay, based on a formula, between 70 and 100% of the increase in the S&P 500 at maturity; featuring a calculated average of 20 quarterly observations 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 70 to 100% participation rate will be announced on the day the CD is issued. The current participation rate is 70%.
(2) 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 CollegeChoice CD account is insured by the FDIC on a pass-through basis to each account owner up to the maximum amount. Under applicable FDIC regulations, accounts that have the same owner will be deemed to be held in the same right and capacity and will be combined for purposes of the $250,000 limitation. Interest that accrues on a Fixed Rate CD or CollegeSure CD is also covered by FDIC deposit insurance, subject to these same limitations. The FDIC has taken the position, however, that payments similar to the upside payment on an InvestorSure CD are not subject to FDIC insurance until the CD matures.
The CollegeChoice CD 529 Savings Plan is not insured by the State of Indiana. Neither the principal invested nor the investment return is guaranteed by the State of Indiana.
(3) 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.
(4) 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 this CD option. Contributions will be held in an Accumulator Account until issue date. Accumulator Accounts with a balance of $250 or more will automatically purchase an InvestorSure CD.