One of the savings options in Ohio's 529 College Savings Program is a FDIC-insured certificate of deposit offered through Fifth Third. The available rates and terms are listed at the CollegeAdvantage website
. The current yields range from 0.50% APY for a 3-month term to 5.00% APY for a 10-year term. The 7-year CD yield is also way above average at 4.00% APY. The shorter terms, however, are not nearly as competitive.
Some useful excerpts from the CollegeAdvantage FAQs:
The 529 college savings plans provide a tax-advantaged college savings option. Withdrawals used for qualified higher education expenses are exempt from federal and state of Ohio income tax, provided the recipient is not claiming any other education tax incentive.
You do not have to be an Ohio resident to participate. Anyone nationwide can open a CollegeAdvantage direct account through the Ohio Tuition Trust Authority. You can also invest in CollegeAdvantage through financial advsiors nationwide.
Credit for for this find goes to MyMoneyBlog
What's the other 5% 10-year CD? It's available to some PenFed members as regular or IRA CDs (see post