In February 2017, Virginia529 announced it was discontinuing CollegeWealth, available through two bank partners, to enhance and streamline program offerings. Instead Virginia529 began offering a new FDIC-insured portfolio within its Invest529 direct savings program. The following information updates customers on changes concerning CollegeWealth accounts opened through BB&T.
This Saturday, April 22, 2017, is the last date to open a new CollegeWealth/BB&T account, including those created as a result of an owner change to an existing CollegeWealth/BB&T account. CollegeWealth savers may continue to add to and withdraw from these accounts. Accounts retain all benefits of other 529 accounts, including tax free growth and a state income tax deduction for Virginia taxpayers. Interest rates on these accounts remain subject to change without notice.
The new Invest529 FDIC-Insured Portfolio is held in an omnibus bank account with Union Bank & Trust. Accounts currently earn 0.50 percent interest, which is subject to change and to an administrative fee of 0.10 percent.
CollegeWealth/BB&T customers should look for more information via letter and email directly from Virginia529 in the next few weeks with streamlined options for those wishing to transition their existing accounts to the Invest529 FDIC-Insured Portfolio.
UPDATE 6/18/18: Effective June 15, 2018, Invest529 FDIC-Insured accounts will now earn 1.50% interest. Accounts are still subject to an administrative fee of 0.10%.