Boston-based Fidelity Investments has added a new bank deposit portfolio across its five direct-sold 529 college savings plans.
The bank deposit portfolio is comprised exclusively of a deposit into an FDIC-insured, interest-bearing, Negotiable Order of Withdrawal (NOW) account and is designed to preserve principal, according to a statement. The rate of return provided by the bank deposit portfolio is indexed to the federal funds effective rate.
The new bank deposit portfolio is available to investors through each of the five direct-sold 529 plans Fidelity manages, including Massachusetts’ U.Fund College Investing 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."





