College 529: Powerful Tool To Save Money For College Tuition
Since 1987, College Savings Bank has been assisting families fund their college educations through the use of 529 College Savings Plans, Coverdell Educational Savings Accounts and educational IRA's. College Savings Bank acts as the program manager for the Indiana, Montana and Arizona 529 plans.
The Arizona Family College Savings Plan offers several products through the College Savings Bank, including the CollegeSure® CD, whose yield depends on the rate of college inflation. Next there is the InvestorSure® CD, which will insure that capital is maintained, but will also offer upside based on the movement of the S&P 500. College Savings Bank also offers 1 and 3 year fixed rate CD's. Arizona taxpayers may deduct up to $750 per taxpayer from their state income tax.
While Indiana offers both a direct and advisor plan, College Savings Bank administers the CollegeChoice 529 Direct Savings Plan. The CollegeChoice CollegeSure® CD is tied to the rate of increase of college inflation. The CollegeChoice InvestorSure® CD will guarantee your principal remains intact and will also offer an increase in value should the S&P500 gain over the term of the CD. These CD's have a five year maturity at which time they can be used for educational expenses or rolled over to another CD. Finally, CSB offers the CollegeChoice Fixed Rate® CDs in 1 and 3 year maturities paying a fixed rate of interest. Indiana offers it's residents an income tax credit of 20% up to a maximum of $1,000 per year.
The Montana Family Education Savings Program (MFESP) offers the same products as the Arizona plan. The difference here is that Montana offers it's taxpayers up to $3,000 per year deduction on their state taxes, or up to $6,000 for a married couple filing jointly.
Investors from Maine, Kansas, Pennsylvania and Missouri may also take a state tax deduction for their contributions. The amount varies from state to state.
Coverdell Education Savings Accounts (ESAs) are also offered by College Savings Bank. Depending on your income level, you may be able to contribute up to $2,000 per year in a Coverdell ESA. The funds grow tax deferred and will offer tax free distributions as long as the proceeds are used for approved educational expenses. One advantage of Coverdell ESA's are the money is not included for financial aid calculations.