UESP’s FDIC-Insured Investments May Surprise You
Cautious investors who want their 529 accounts protected from market fluctuations might find UESP’s FDIC-insured investment products are worth a look.
UESP’s FDIC-Insured investment option, and the FDIC-insured accounts that are underlying investments for other UESP investment options, provide an annual percentage yield of approximately 1.66 percent, net of fees.
By contrast, the national average for money market accounts is 0.12 percent, and the best money market rate is 1.41 percent, according to the most recent Bankrate survey of banks and credit unions.
The rate of return on UESP’s FDIC-insured investments is among the most competitive rates for an FDIC-insured product offered by any 529 college savings plan, according to FDIC-Insured Products in the 529 Marketplace, a June 2017 study by Savingforcollege.com.
Contributions to accounts in the FDIC-Insured investment option, and to age-based, static, and customized accounts that have FDIC-insured accounts as underlying investments, are held in trust by UESP at Sallie Mae Bank (90 percent) and U.S. Bank (10 percent). Money in the FDIC-insured accounts is insured by the FDIC on a pass-through basis to each account owner up to the maximum amount set by federal law, which is $250,000 at each bank. The amount of FDIC insurance provided to an account owner at each Bank is based on the total of (1) the proportional value of an account owner’s investment in the FDIC-insured accounts at each Bank, plus (2) the value of the account owner’s other personal bank accounts (if any) held at each Bank, as determined by the Banks and by FDIC regulations.