The CollegeSure® CD The CollegeSure CD is a certificate of deposit indexed to college costs and guaranteed to meet future tuition, fees, room and board. CollegeSure CDs are issued only by the 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 floor rate for added protection. Over the one-year period ended July 31, 2004, the college inflation rate was 5.35%. And, the CollegeSure CD is safe. Principal and interest are FDIC-insured, backed by the full faith and credit of the U.S. Government - up to $100,000 per depositor. The CollegeSure CD has also been awarded Standard & Poor's highest credit rating. CollegeSure CDs are available in maturities from one to twenty years so you can time your CDs to mature during the years your child will attend college or graduate school. Each CD deposit of $250 or more is measured in terms of "units". Units are a measure of how much college you've prepaid so that you can keep track of your progress. 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). The purchase price per unit exceeds the value of the IC 500 at the deposit date. For example, if today's cost for 10% of one year of private college is $2,979, you would deposit $4,595 to  purchase 0.10 units of a CollegeSure CD for your three-year old child to guarantee the future cost of college in fifteen years. At maturity you'll receive 10% of one year of whatever private college costs are in fifteen years, no matter how high college costs rise. Over the term to maturity of each CollegeSure CD, the APY is not less than the college inflation rate less 3.00%.   Return to Education Startegy