NEST is Nebraska’s 529 college savings plan (previously named College Savings Plan of Nebraska), of which the State Treasurer serves as the Trustee and First National Bank of Omaha serves as Program Manager.
According to the announcement, the Bank Savings Individual Investment Option is a low-cost investment option that is not subject to stock market fluctuation. The savings option is FDIC-insured up to $250,000 when combined with any other account owner holdings at the First National Bank of Omaha.
The Bank Savings Individual Investment Option has no minimum contribution, balance, or holding period; no withdrawal fees; a 0.20% total annual asset based fee; and no adviser fees in the NEST Advisor Plan. The new option also offers competitive interest rates with a current 0.80% APY. This rate will change over time and is compounded daily and credited on a monthly basis less the total annual asset based fee.
State Treasurer Stenberg said the new option provides a very conservative, safe investment choice for parents, particularly those whose children are nearing college age or are already in college, and for grandparents who are seeking secure investment opportunities for their grandchildren’s educational expenses. “This will be a much appreciated option to make sure funds for their children’s or grandchildren’s education are secure and federally insured,” he said, in the announcement.