Friday, October 27, 2006
College Savings Bank
The CollegeSure CD is a college cost prepayment product. It pays an annual percentage yield tied to the rise in college costs each year and it has a 2.00% floor rate for added protection. Over the one-year period ended July 31, 2006, the college inflation rate was 5.74%.
Each CD deposit of $250 or more is measured in terms of "units." Units are a measure of how much college you've prepaid. One unit, at maturity, is equal to one full year's average tuition, fees, room and board at a four-year private college as measured by the Independent College 500 Index (IC 500).