If you choose to start saving with a Backer Safe, your money will be held at one of the largest U.S. banks for your benefit, and will be FDIC-insured up to $250,000. We'll invest your savings in a 529 plan once you're ready.
If you choose to invest your savings in a 529 plan, your investment will be placed in a state-sponsored account managed by a national investment company. Your investment will be tax-free as long as you end up using it for qualified education expenses.
Most 529 plan investments are not insured by the FDIC, and the portfolio selection we recommend will not be FDIC-insured. However, we can change your portfolio selection if you prefer to be invested in FDIC-insured funds. Please email us at firstname.lastname@example.org and we can make this change for you.
- For more details on why recommend saving for college by investing in a 529 plan, please see: Why do you recommend saving with a 529 plan?
- For more details on how we keep your information safe and secure, please see: How secure is Backer? How do you keep my personal information safe?