Savings option for tuition offered

Current market values— or the lack thereof — may have kept many people from investing, however a new FDIC-insured college savings option ensures that contributions will outlast economic volatility.

The Utah Educational Savings Plan announced Wednesday a new investment option that helps to protect money earmarked for future college expenses. It is the first option that requires no minimum contribution to open an account, and like all 529 accounts, owners can contribute what they want, when they want.

"An FDIC-insured savings account is a logical investment option for 529 participants who are eager to save for the future yet are skittish about today's financial markets," said Lynn Ward, director of the UESP. "This new investment option further enhances the value of our program and provides our investors with another way to save for college during challenging times."

The new FDIC-insured savings account is held in trust by UESP at Zions First National Bank. Funds in the savings account are insured by the FDIC on a pass-through basis, to each UESP account owner, up to the maximum amount set by federal law — currently $250,000 through Dec. 31 and $100,000 thereafter.

"Zions Bank has long been a dedicated champion of higher education, so we are thrilled to partner with UESP to house its FDIC-insured account in trust," said Zions Bank President and CEO Scott Anderson. "Not only is UESP a top-rated service, but now it is helping to make college savings easier for families who want the security of federally-insured funds."

Like always, UESP earnings are tax-free when used for qualified higher education expenses. Utah taxpayers who contribute to an account can claim a Utah state income tax credit of 5 percent on their contributions, up to $1,740 per beneficiary ($3,480 for couples filing jointly). Ward said members can take advantage of the tax savings each year if at least one contribution is made, for the life of the account.

"Our partnership today will help make college dreams possible for students of tomorrow," Anderson said.

For more information, visit uesp.org.