The Bank Deposit Portfolio is comprised of a deposit into an FDIC-insured, interest-bearing, Negotiable Order of Withdrawal (NOW) account and is designed to preserve principal. The rate of return provided by the Bank Deposit Portfolio is indexed to the federal funds effective rate.
The five direct-sold 529 plans Fidelity manages include:
- New Hampshire’s UNIQUE College Investing Plan
- California’s ScholarShare College Savings Plan
- Massachusetts’ U.Fund® College Investing Plan
- Delaware College Investment Plan
- Fidelity Arizona College Savings Plan
“With more families saving for college, we see a wider range of investment preferences,” said Joe Ciccariello, vice president, Fidelity Investments, College Planning. “The addition of the Bank Deposit Portfolio offers an additional investment option that may help meet the needs of a larger group of investors.”
Fidelity also offers more conservative options for 529 investors including the Conservative Portfolio and the Index Conservative Portfolio, both diversified portfolios comprised of money market, short term and other fixed-income investments. Fidelity also has a Money Market Portfolio that invests primarily in short-term debt obligations such as U.S. Treasury bills and certificates of deposit.