CD's in a 529 Plan

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renter
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Joined: Sat Aug 23, 2008 2:14 pm

CD's in a 529 Plan

Post by renter » Tue Apr 20, 2010 12:17 am

Anyone have any suggestions for a 529 plan that offers the highest yielding CD's? Ohio's 529 plan offers a 10 year CD with a 5% rate, which I'm guessing is about the highest out there.

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gasman
Posts: 716
Joined: Mon Jul 30, 2007 6:13 pm

Re: CD's in a 529 Plan

Post by gasman » Tue Apr 20, 2010 6:30 am

renter wrote:Anyone have any suggestions for a 529 plan that offers the highest yielding CD's? Ohio's 529 plan offers a 10 year CD with a 5% rate, which I'm guessing is about the highest out there.
I use Ohio's 529 for CDs as well. Very competitive rates. Fifth Third Bank. One caveat- the early withdrawal penalties are outrageous.

grok87
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Joined: Tue Feb 27, 2007 9:00 pm

Re: CD's in a 529 Plan

Post by grok87 » Sat May 01, 2010 10:17 pm

gasman wrote:
renter wrote:Anyone have any suggestions for a 529 plan that offers the highest yielding CD's? Ohio's 529 plan offers a 10 year CD with a 5% rate, which I'm guessing is about the highest out there.
I use Ohio's 529 for CDs as well. Very competitive rates. Fifth Third Bank. One caveat- the early withdrawal penalties are outrageous.
I agree. So what is the best way to think about the early withdrawal penalties (max of 6 months interest and 1/2 of remaining interest for unexpired cd term)? Is it worth it. My gut tells me to be wary...

What do you think about this one...
http://www.bbt.com/personal/products/co ... fault.html
looks like a 2.25% savings rate...not bad...
cheers,
Keep calm and Boglehead on. KCBO.

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gasman
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Re: CD's in a 529 Plan

Post by gasman » Sat May 01, 2010 11:35 pm

grok87 wrote:
gasman wrote:
renter wrote:Anyone have any suggestions for a 529 plan that offers the highest yielding CD's? Ohio's 529 plan offers a 10 year CD with a 5% rate, which I'm guessing is about the highest out there.
I use Ohio's 529 for CDs as well. Very competitive rates. Fifth Third Bank. One caveat- the early withdrawal penalties are outrageous.
I agree. So what is the best way to think about the early withdrawal penalties (max of 6 months interest and 1/2 of remaining interest for unexpired cd term)? Is it worth it. My gut tells me to be wary...

What do you think about this one...
http://www.bbt.com/personal/products/co ... fault.html
looks like a 2.25% savings rate...not bad...
cheers,
I have a chunk of my kids 529 money in these CDs. The reality is a 13 year old is not going to need the money for college before 5 years. The early withdrawal penalties are only relevant if you want the money for something other than your kids college

renter
Posts: 332
Joined: Sat Aug 23, 2008 2:14 pm

Post by renter » Sun May 02, 2010 12:43 am

I'm assuming from the responses that Ohio appears to have the highest yielding CD's. Does anyone know of a 529 plan anywhere that has a CD of any term greater than 5%?

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