WI CUs Get Slice Of College Plans
Credit unions around the state have tapped a new source of funds with the recent decision by the state's EdVest panel to allow 529 college plan funds to be invested in federally insured CDs at credit unions and banks.
The EdVest panel, which overseas the state-sponsored college program, voted unanimously to allow CDs, in addition to the mutual funds now permitted.
Deposits must be made through Wells Fargo Funds Management, which runs the EdVest program under a five-year contract.
Wells Fargo will place the funds in CUs through Wisconsin Central CU, in Hales Corner, and in banks through Bankers' Bank, in Madison.
The CDs will pay a rate equivalent to the six-month Treasury bill, minus fees. Wells will get a 0.3% fee and Corporate Central and Bankers' Bank will get 0.25%.