18 States Offer FDIC-Insured 529 Plan Options

Kathryn FlynnBy Kathryn FlynnBy Savingforcollege.com

18 states offer 529 plan options that are insured by the Federal Deposit Insurance Corporation (FDIC), including high yield savings accounts and bank certificates of deposit (CDs). FDIC-insured investments are suitable for families who want to preserve capital in their 529 plan without taking on excess risk.

What are FDIC-insured investments?

FDIC-insured investments are backed by the full faith and credit of the United States government up to certain limits in the event of a bank failure. This is an attractive feature for families with a short time horizon to invest. If a student is approaching college or has already started college, they can take advantage of the tax benefits and flexibility of a 529 plan without risking their principal investment. The same strategy works for families who use a 529 plan to pay for K-12 tuition.

FDIC-insured options within 529 plans are also a good option for families who are risk-averse. For example, parents and grandparents who witnessed their retirement accounts or other savings get wiped out by the Great Recession may be hesitant to leave their child’s education fund at the mercy of volatile stock and fixed-income markets.

The states listed in this table offer at least one FDIC-insured investment option within a 529 plan. Two additional 529 plans offer similar investment options that are not FDIC-insured:

  • North Carolina’s National College Savings Program offers the Federally-Insured Deposit Account, which is insured by the National Credit Union Administration (NCUA)
  • Wisconsin’s Edvest 529 plan also offers CD investment options, but they are not FDIC-insured

States that offer FDIC-insured investment options within 529 plans


529 Plan

FDIC-Insured Investment Option


GIFT College Investing Plan

GIFT Plan Savings Portfolio

iShares 529 Plan

Savings Portfolio


AFCSP – Bank Plan

Savings Account

Fidelity Arizona College Savings Plan

AZ Bank Deposit Portfolio


Smart Choice College Savings Plan

Money Market Savings Account


Delaware College Investment Plan

DE Bank Deposit Portfolio


Idaho College Savings Program

Savings Portfolio


CollegeChoice Advisor 529 Savings

Savings Portfolio

CollegeChoice CD 529 Savings Plan

Savings Account

CollegeChoice 529 Direct Savings

Savings Portfolio


KY Saves 529

Capital Preservation Option


U.Fund College Investing Plan

MA Bank Deposit Portfolio


NextGen College Investing Plan – Client Direct

NextGen Savings Portfolio

NextGen College Investing Plan – Client Select

NextGen Savings Portfolio


Nebraska Education Savings Trust - Advisor

Bank Savings

Nebraska Education Savings Trust – Direct

Bank Savings

State Farm College Savings Plan

Bank Savings

New Hampshire

UNIQUE College Investing Plan

NH Bank Deposit Portfolio


SSGA Upromise 529

Savings Portfolio


CollegeAdvantage Direct 529 Savings Plan

Fifth Third 529 Savings Account


Oregon College Savings Plan

FDIC-Insured Option

South Carolina

Future Scholar 529 College Savings Plan – Advisor

Columbia Bank Deposit 529 Portfolio

Future Scholar 529 College Savings Plan – Direct Sold

Future Scholar Bank Deposit Portfolio


TNStars College Savings Program

TN First Interest Bearing Account



FDIC-Insured Option



FDIC-Insured Option

Source: 2019 FDIC-Insured Products in 529 Plans, Savingforcollege.com