Colorado has added a Federal Deposit Insurance Corp.-insured bank product to its section 529 college-savings plan, joining the trend toward more conservative products.

The state Tuesday launched the CollegeInvest Smart Choice College Savings Plan, which offers a certificate of deposit, insured by the FDIC, and a money market account through FirstBank Holding Co. in Lakewood, Colo. Several other states have similar products. "Families in Colorado were looking for a more conservative option," said Angela Baier, a spokeswoman for CollegeInvest. The plan offers rates from 0.40% to 1%, depending on the size of the balance.

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