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Salt Lake City — The Utah Educational Savings Plan (UESP) has announced that effective on or about April 9, Sallie Mae Bank and U.S. Bank will be the repository banks for UESP’s FDIC-insured underlying investment.
On or about April 9, existing and future contributions to and earnings on UESP’s FDIC-insured accounts will be allocated between Sallie Mae Bank and U.S. Bank at 90 percent and 10 percent respectively, potentially increasing the amount of FDIC insurance coverage for UESP account owners. The annual percentage yield for the FDIC-insured accounts will be a blended rate based on recognized benchmarks for short-term interest rates, updated and posted monthly on uesp.org.
“Allocating the FDIC-insured accounts between two banks means more flexibility, more security and more diversification for college savers seeking conservative investments,” said Lynne Ward, UESP executive director. “The banks for UESP’s FDIC-insured investment have been carefully selected to offer an FDIC-insured investment competitive with other similar investments in the market.”
Headquartered in Utah, Sallie Mae Bank is an affiliate of SLM Corporation. U.S. Bank is the fifth-largest commercial bank in the United States.
UESP includes the FDIC-insured investment in a variety of investment options, including:
Age-based investment options that automatically reallocate funds to be weighted less in equities and more in the FDIC-insured investment as the beneficiary ages
An investment option solely allocated to the FDIC-insured investment
Customized investment options that allow an account owner to create their own age-based or static allocations from a selection of mutual funds and the FDIC-insured investment