Facebook Pixel New Study: FDIC-Insured 529 Plans

New Study: FDIC-Insured 529 Plans

Written by Kristen Kuchar | October 25, 2022

Saving for College released an update to its study on FDIC-Insured Products in 529 Plans. This report reviews currently available federally-insured 529 college savings plan options, including products that are insured by the Federal Deposit Insurance Corporation (FDIC). Every 529 plan program was reviewed to provide the most current and accurate data was utilized. 

There are two types of FDIC-insured products held inside 529 plans: Certificates of Deposit (CDs) and Savings Accounts. Because they are backed by the full faith and credit of the U.S. government (up to certain limits), FDIC-insured products are suitable for conservative investors interested in preserving capital without taking on excess risk.

As of August 31, 2022 there were 29 529 savings plans that offer some form of a federally-insured product, down from 31 in 2021. The study finds that yields net of fees on these products vary widely. Certificate of Deposit (CD) yields range from 0.20% to 3.00% depending on the duration, and saving account yields range from 0.15% to 2.56%. The maximum yields are up significantly from the previous study in 2021.

Fifteen plans now offer an Annual Percentage Yield (APY) net of fees of 2.00% or greater on federally-insured savings accounts. Fees on federally-insured savings options with 529 plans range from no fees to 0.39%.

The highest yield on CDs, 3.00%, is offered by Indiana’s CollegeChoice CD 529 Savings Plan through its 3-year CD, managed by College Savings Bank, a Division of NexBank.  Virginia’s Invest529 offers the highest APY net of fees on a savings account product: 2.56% through its FDIC-Insured Portfolio.

Download the full report: FDIC-Insured Products in the 529 Marketplace

Was this article helpful?

About the author

Kristen Kuchar is Managing Editor and Content Strategist for Savingforcollege.com. She has covered personal finance issues with a focus on student loans and college savings for the last decade for a wide variety of publications. Kristen is passionate about creating content that eases the stress of paying for college and managing student loans. She graduated from Columbia College with a B.A. in Journalism.

Full bio →

A good place to start:

See the best 529 plans, personalized for you

Helping families save for college since 1999
Join our email list

The latest articles and tips to help parents stay on track with saving and paying for college, delivered to your inbox every week.

Frequently featured in:

Saving For College is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.

20533 Biscayne Blvd Ste 4 #199 Miami, FL 33180-1501Phone: (585) 286-5426Copyright © 2025 Saving for College, LLC. All Rights Reserved