CD designed for 529s

The 529 college savings plan industry has a new certificate of deposit product. The Education CD Plus Portfolio Investment Option has been introduced for the OppenheimerFunds 529 Plan in Oregon. The instrument provides principal protection and the potential for market appreciation by allowing investors to select a CD with a guaranteed fixed rate of return that may provide an additional return because it is linked to the Standard & Poor’s 500 stock index. “Not every investor is comfortable taking on the amount of risk that can be associated with investments with the greatest potential for growth,” said Raquel Granahan, vice president of wealth management at New York-based OppenheimerFunds Inc. “The Education CD Plus Portfolio is designed for investors who want to grow college savings, yet are reluctant to expose their savings to potential losses that can be associated with volatility in the equity markets.” CD pioneers in the industry include Princeton, N.J.-based College Savings Bank, which introduced the product in 1998 and Columbus-based Ohio Tuition Trust Authority, which debuted the product last year.