CollegeSure CDs are issued by College Savings Bank . The CollegeSure CD is a college cost prepayment product. It pays an annual percentage yield equal to the rise in college costs each year and it has a floor rate for added protection. And, the CollegeSure CD is safe. You select maturities that coincide with the expected years your child will attend college or graduate school.
Maturities range from one to twenty-five years.
Your earnings then grow tax free in CollegeSure CDs while you retain control of the assets. When the time comes to use the money for college, the earnings are then taxed federally at the child's lower tax rate and Arizona tax free. You can save for all or part of any type of college education. Units are simply a measure of how much college you've prepaid so that you can keep track of your progress. Read about the tax benefits associated with the Arizona Program.