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Since 2005, Ohio’s 529 Plan, CollegeAdvantage, and Fifth Third Bank have helped families save for their children’s future higher education. With the 529 saving accounts and 529 Certificate of Deposits (CDs) offered through Fifth Third, more conservative investors and families whose children will start their higher education soon can enjoy the security of these FDIC-insured options as well as the tax advantages of placing their college savings in Ohio’s 529 Plan.

New 529 savings account and 529 CD rates

Effective Friday, Feb. 24, 2023, the rates for 529 Saving Accounts will change, based on the new short-term interest rates set by the Federal Reserve.

Fifth Third 529 Saving Account rates are based on balance amount. Beginning Feb. 24, 2023, the rates for the Fifth Third 529 Saving Accounts are:

• For balances under $5,000, the Annual Percentage Yield (APY) will be 0.15% Annual Percentage Yield (APY). 
• For balances from $5,001 – $10,000, the new rate is 0.15% APY.
• For balances from $10,001 - $25,000, the new rate is 0.25% APY
• For balances from $25,001 - $50,000, the new rate is 0.25% APY.
• For balances from $50,001 - $100,000, the new rate is 0.50% APY.
• For balances over $100,000, the new rate is 0.50% APY.

Additionally, Fifth Third will increase the APY for the 529 CD term of 6-11 month to 4%.

For the current rates of all Fifth Third FDIC Insured Options, visit Fees and Facts.

How to save in the Fifth Third banking options in Ohio’s 529 Plan

If you would like to open a Fifth Third 529 savings account or 529 CD, you will first need to open a CollegeAdvantage Direct 529 Plan. It’s simple to go online to open an account in minutes and choose to invest in a Fifth Third Savings Account or purchase a Fifth Third 529 CD. The minimum contribution to open a Fifth Third 529 CD, at any term, is $500. You cannot purchase a CD with payroll deduction or automatic recurring contributions.

Current CollegeAdvantage Direct 529 Plan account owners can open a Fifth Third 529 savings account or purchase a CD online. Log in to your Direct Plan account. For savings accounts, set up the account and make your initial deposit. To purchase a Fifth Third 529 CD, make a one-time electronic contribution of $500 or more from your bank account to buy a CD. When you select  a CD, choose what the term of maturity would best fit your family’s needs.

After logging in, you can also go to “Change Your Investment Options” section to exchange a current investment with a $500 minimum to buy a CD or at any amount to open a savings account. Another option is to download an Additional Contribution Form and mail it with a check to fund the savings account or purchase a CD.

Two business days are required to complete the transaction to open a Fifth Third 529 Savings Account or 529 CD. Accordingly, the FDIC-insured investment option will receive the APY in effect on the business day following the receipt of a contribution, which is received in good order before 4 p.m. EST on any given business day.

Once the 529 CD reaches the end of its term, the balance will automatically transfer to a Fifth Third 529 Savings Account in three to five business days. At this point, you can make a withdrawal or exchange the funds to another Fifth Third 529 CD or any other Ohio 529 investment option. You can also opt to leave the money in the savings account to earn interest. If the 529 CD is liquidated prior to its date of maturity, penalties will be assessed. A chart of the penalties can be found here.

Both the Fifth Third 529 Savings Account and the Fifth Third 529 CDs are FDIC-insured investment options to certain limits.

Ohio’s 529 Plan has tools to help you determine how much to save for future college costs as well as age-based savings strategies. Remember, it’s cheaper to save for college now, earn interest in a 529 account and use those savings to pay for college versus paying for student loans with accumulated interest later.

Visit Ohio’s 529 Plan online to start saving today for your child’s future education with as little as $25. A 529 account can be used for whatever school comes after high school—including four-year colleges and universities, community colleges, tech, trade or vocational schools, apprenticeships and certificate programs.  Learn, plan, and start with Ohio’s 529 Plan today at CollegeAdvantage.com.

Posted on February 24, 2023