RALEIGH,N.C.--(BUSINESS WIRE)--North Carolina’s National College Savings Program (NC 529 Plan) has added the Federally-Insured Deposit Account, which is provided by State Employees’ Credit Union (SECU), to the investment options it offers. Announced by College Foundation of North Carolina (CFNC) on April 12th, the deposit account provides protection of principal and earnings, offers a competitive interest rate, and is insured by the National Credit Union Administration (NCUA). The new investment option is the culmination of a collaboration between SECU, College Foundation, Inc. and the NC State Education Assistance Authority.
A 529 Plan is a tax-advantaged education savings plan operated by a state or educational institution and is designed to help families set aside funds for future college costs. Contributions by NC taxpayers made to the Federally-Insured Deposit Account or any of the other 13 investment options available in the NC 529 Plan may be eligible for an annual state income tax deduction. Earnings on investment options in a NC 529 account also grow free from federal and NC income tax, and are not taxed by the NC or federal government upon withdrawal when used for qualified higher education expenses.
Shera Hube, Vice President for marketing and savings at College Foundation, Inc., which administers the NC 529 Plan, says “This new option should be particularly appealing for conservative investors who want return without worry about investment loss, or perhaps have an older child who will soon be attending college.”
Joan McCool, Senior Vice President of SECU’s IRA & Investment Services department comments, “State Employees’ Credit Union is pleased to have a role in making the Federally-Insured Deposit Account available through the NC National College Savings Program. SECU members have expressed an interest in this type of account, and we are very pleased that Credit Union members and non-members interested in investing for college have this option.”
Steve Brooks, Executive Director for the North Carolina State Education Assistance Authority, which established and maintains the NC 529 Plan, adds, “We have worked with State Employees’ Credit Union on several projects that have been a real benefit to families paying for college. Making a federally-insured investment option available now for all NC 529 Plan participants to consider is another good example of how our organizations collaborate to make higher education possible.”
SECU is a non-profit financial cooperative owned by its members. SECU has been providing the employees of the State of North Carolina and their families with consumer financial services for more than 70 years. Currently serving over 1.5 million members, SECU provides services through 230 branch offices, over 1,000 ATMs, 24/7 call centers and a website—www.ncsecu.org.