BB&T unveils new FDIC-insured 529 savings account

November 4, 2009

WINSTON-SALEM, N.C., Nov. 4 /PRNewswire-FirstCall/ -- November is prime time for opening, and contributing to, a 529 college savings account. Two reasons: the accounts offer end-of-year tax advantages and can be opened for children and given as holiday gifts.

The BB&T CollegeWealth 529 Savings Account rolls out this week through BBT.com then at an opportune time for students, parents and grandparents who are looking for a safe and secure way to save money for qualified higher education expenses, BB&T officials say.

But with numerous tax-advantaged 529 account options already available, why turn to BB&T CollegeWealth? For starters, BB&T Corporation is one of the first financial holding companies to offer the popular college savings product in an FDIC-insured money market savings account.

"That's an important distinction," says Retail Deposit Product Development Manager Sonia Beach, "because by opening a 529 through BB&T, you get the security of FDIC insurance coverage as well as the ability to conveniently access your 529 account right along with your other bank deposit accounts.

"With the recent market fluctuations of the past few years, clients are looking for attractive, yet safe, earning potential, and this account offers an attractive alternative to investment-based 529 accounts."

BB&T has partnered with the Virginia College Savings Plan to offer the BB&T CollegeWealth 529 Savings Account across the country on BBT.com. It allows families to benefit from the federal and, for Virginia residents, state tax advantages of 529 accounts while taking advantage of the FDIC insurance coverage that comes with a money market savings account.

Benefits of the BB&T CollegeWealth 529 Savings Account include:

    --  No state residency restrictions
    --  Up to $4,000 state income tax deduction for Virginia taxpayers
    --  Low $25-minimum opening deposit
    --  No fees or minimum balance requirements
    --  Available to full- and part-time students
    --  Competitive interest rate tiers based on balances
    --  Quick and convenient online application through BBT.com/CollegeWealth

    --  Convenient account access options, including BB&T OnLine Banking, free
        BB&T Mobile Banking and Alerts, and more than 1,800 BB&T financial
        centers (approximately 400 of which are located in Virginia)

The BB&T CollegeWealth 529 Savings Account grows tax-free and remains tax-free as long as it is used for qualified higher education expenses, including tuition, fees, room and board, textbooks, and required supplies and equipment.

"One of the great features about the tax-advantaged BB&T CollegeWealth 529 account is that it is available to college savers not just in Virginia but nationwide, and can be used at schools throughout the country as well," said BB&T Deposit Services Manager Donna Goodrich. "It is a conservative way to save for college, graduate school, technical training and ongoing education."

With more than two million accounts and almost $27 billion in assets under management as of Sept. 30, the Virginia College Savings Plan is the largest 529 plan in the country.

At Sept. 30, Winston-Salem, N.C.-based BB&T Corporation (NYSE: BBT) had $165.3 billion in assets and operated more than 1,800 financial centers in 13 states and Washington, D.C. More information about the company is available at BBT.com.

SOURCE BB&T Corporation