Investment Objective
The Portfolio seeks income consistent with the preservation of principal.
Investment Strategy
The Portfolio invests 100% of its assets in the NexBank High-Yield Savings Account ("HYSA"). The HYSA is held in an omnibus savings account insured by FDIC, which is held in trust by the Authority at NexBank. Investments in the Savings Portfolio A and Savings Portfolio C earn a varying rate of interest. Interest on the HYSA will be compounded daily based on the actual number of days in a year (typically, 365/365 and 366/366 in leap years) and will be credited to the HYSA on a monthly basis. The interest rate is expressed as an Annual Percentage Yield (APY). The HYSA APY will be reviewed by NexBank on a periodic basis and may be recalculated as needed at any time. To see the current Savings Portfolio A and Savings Portfolio C APY, please visit www.collegechoiceadvisor529.com or call 1-866-485-9413.
Investments in the Savings Portfolio A and Savings Portfolio C are pooled into the FDIC-insured omnibus savings account held in trust by the Authority at NexBank. Subject to the application of NexBank and FDIC rules and regulations to each Account Owner, funds in the Savings Portfolio A and Savings Portfolio C will retain their value as described below under "FDIC Insurance."
FDIC Insurance
FDIC insurance is provided for the Savings Portfolio only. Contributions to and earnings on the investments in the Savings Portfolio are insured by the FDIC on a pass-through basis to each Account Owner up to the maximum amount set by federal law – currently $250,000. The amount of FDIC insurance provided to an Account Owner is based on the total of: (a) the value of an Account Owner’s investment in the Savings Portfolio; and (b) the value of all other accounts held by the Account Owner at NexBank, as determined by NexBank and FDIC regulations. The Plan Officials are not responsible for determining how an Account Owner's investment in the Savings Portfolio will be aggregated with other accounts held by the Account Owner at NexBank for purposes of the FDIC insurance
No Other Guarantees
There is no other insurance and there are no other guarantees for the Savings Portfolio. Therefore, like all of the Portfolios, neither your contributions into the Savings Portfolio A and Savings Portfolio C nor any investment return earned on your contributions are guaranteed by the Plan Officials. In addition, the Savings Portfolio A and Savings Portfolio C do not provide a guarantee of any level of performance or return.
Investment Risks
Income Risk. This risk is discussed under NexBank Investment Risks, per the disclosure booklet.
