Union Bank & Trust CollegeWealth 529 Savings is now offering up to 1.50% APY for balances of $10,000 or more. There are many benefits with a 529 college savings account such as FDIC insured, tax deductions available in some states, earnings grow free of federal taxes, and tax-free withdrawals when used for qualifying education expenses. You can open an account in any state with flexible features and tax advantages in a safe, FDIC–insured savings account.
Currently, only Union Bank & Trust. Only $25 minimum to open, there is no annual fee, no monthly maintenance fees, and no state residency requirements. There is also up to a $4,000 state tax deduction for Virginia taxpayers.
Current Partner Banks Rates:
- Balances of $1 to $9,999: 1.25% APY
- Balances of $10,000 or more: 1.50% APY
Union Bank & Trust 1.50% APY CollegeWeatlth 529 Savings Information:
- Sign up Offer
- Account Type: CollegeWealth 529 Savings Account
- Availability: Nationwide
- Expiration Date: None
- Hard Inquiry: ?
- Opening Deposit Credit Card Funding: None
- Direct Deposit Requirement: None
- Monthly Fee: None
- Additional Requirements: None. $10K+ for maximum 1.50% APY rate.
- Closing Account Fee: None. However, unqualified withdrawal take a 10% penalty on any earnings.
This is by far the best high yield savings account without any hoops to jump through. Even if you put money into a 529 account, you can take withdrawal anytime for whatever reason but you’ll be subject to income taxes and an additional 10% penalty on any earnings. Therefore, you can think of this account as a regular taxable savings account with an effective rate of 1.35%+ APY even after any penalties. However, it may take weeks to withdraw money from a 529 savings account compare to a traditional bank account. Let us know if you have any experience in opening a 529 savings account and withdrawing the money process. Don’t forget to check out the best bank rates with all reviews.
