CollegeWealth will help families benefit from the tax-free advantages of 529 accounts – and guarantee the safety of their money – by offering through participating banks the opportunity to save for their children’s or their own higher education. CollegeWealth will build on the existing relationships that customers have with their banks to create tax-free and often state tax deductible 529 college savings accounts and Certificates of Deposits (CDs).

An affordable and familiar way to save, CollegeWealth is expected to appeal to risk-averse investors since each college savings account or CD with a value up to $100,000 (when combined with any other holdings of an individual at any one bank) is backed by the Federal Deposit Insurance Corporation (FDIC).

Click here for a list of participating banks

Other features include:

• CollegeWealth is flexible, with no state residency requirement and no income phase outs;
  
  
• CollegeWealth is affordable for parents and grandparents alike, with account deposits and interest rates established by each participating bank or financial institution;
  
  
• CollegeWealth is adaptable since account owners may work with the participating bank of their choice while saving on their own budgets and timetables.

Like Virginia’s three other 529 plans, CollegeWealth account contributions will grow free of federal taxes.Withdrawals also will be tax free when used for qualified higher education expenses, including tuition, fees, room and board, textbooks, and equipment required by a college for enrollment.

Virginia taxpayers receive a $2,000 a year state tax deduction – with an unlimited carryforward – for every dollar saved in each separate CollegeWealth account.