A little can go a long way
Thinking about the cost of college can seem intimidating. It doesn’t need to be. Most people don’t save everything they need, but small amounts can add up. CollegeBound Saver offers you a simple way to save for education, and our plan is now more affordable than ever.
- Take the first step. There is no minimum to open a CollegeBound Saver account. It’s easy to start saving in a way that fits your budget.
- Save on your terms. You can set up a recurring contribution for as little as $1 per month.
- Don’t let fees eat away at your savings. There are no sales charges, commissions, or account maintenance fees.
- Low-cost Portfolios. Depending on which investment options you choose, annual asset-based fees for Rhode Island residents range from 0.03-0.35%. If you invest $1,000, your annual asset-based fee can be as low as $0.30.
Compared to borrowing for college, see why saving with a low-cost plan like CollegeBound Saver is a smart idea.
Managing to save even a small contribution each month is a far better plan than borrowing all of what you'll need when the time comes.
Consider these hypothetical scenarios:
Scenario 1: Terry's parents start investing $100 a month into a 529 plan account right after Terry's birth. In 18 years (assuming a 5% annual rate of return), they could potentially save more than $35,000.1
Scenario 2: After exhausting federal student aid options, Terry has to borrow $35,000 to attend college. Based on a private student loan rate of 7.0 percent, Terry could be faced with a monthly payment of $406 for 10 years (or $48,720).2