With a scary stock market and an unpredictable economy, investing can seem like the last thing you want to do right now. You might be hesitant to invest in a 529 college savings plan right now in the midst of the coronavirus-induced bear market. However, an FDIC-insured 529 college savings plan could be exactly what you’re looking for.

These 529 plan investment options are insured by the federal government, through either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). Because these plans are backed by the full faith and credit of the U.S. government up to certain limits ($250,000 per account holder per institution), federally-insured products are suitable for conservative investors interested in preserving capital without taking on excess risk. 

Unlike the stock market, these investments will not lose value. The potential return on investment from interest income is lower, but so too is the investment risk. 

There are 18 states that 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 with the uncertainty of COVID-19.

 States that offer FDIC-insured investment options within 529 plans

State

529 Plan

FDIC-Insured Investment Option

Arkansas

GIFT College Investing Plan

GIFT Plan Savings Portfolio

iShares 529 Plan

Savings Portfolio

Arizona

AFCSP – Bank Plan

Savings Account

Fidelity Arizona College Savings Plan

AZ Bank Deposit Portfolio

Colorado

Smart Choice College Savings Plan

Money Market Savings Account

Delaware

Delaware College Investment Plan

DE Bank Deposit Portfolio

Idaho

Idaho College Savings Program

Savings Portfolio

Indiana

CollegeChoice Advisor 529 Savings

Savings Portfolio

CollegeChoice CD 529 Savings Plan

Savings Account

CollegeChoice 529 Direct Savings

Savings Portfolio

Kentucky

KY Saves 529

Capital Preservation Option

Massachusetts

U.Fund College Investing Plan

MA Bank Deposit Portfolio

Maine

NextGen College Investing Plan – Client Direct

NextGen Savings Portfolio

NextGen College Investing Plan – Client Select

NextGen Savings Portfolio

Nebraska

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

Nevada

SSGA Upromise 529

Savings Portfolio

Ohio

CollegeAdvantage Direct 529 Savings Plan

Fifth Third 529 Savings Account

Oregon

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

Tennessee

TNStars College Savings Program

TN First Interest Bearing Account

Utah

my529

FDIC-Insured Option

Virginia

Invest529

FDIC-Insured Option