Deposit Restricted Qualified Tuition Programs Act Of 2009

Floor Speech

Deposit Restricted Qualified Tuition Programs Act Of 2009

* Mr. CLEAVER. Madam Speaker, today I am introducing the Deposit Restricted Qualified Tuition Programs Act of 2009. My bill establishes an avenue for those wanting to save for the college education of a child, grandchild or other related individual, to do so in a Federal Deposit Insurance Corporation (FDIC) insured deposit. At the present time, savers can only access the 529 college savings program through a securities based plan and my bill would not change this avenue.

* However, following the recent crash of the stock market, many savers saw their accounts drop in value by fifty percent or more and as such are reluctant to place any more monies in a securities based plan. Furthermore, many small savers can find investing in securities based products both complex and intimidating. A FDIC insured deposit option would provide guaranteed principal return and a guaranteed return on the deposit, all from a commercial bank that the saver likely has a relationship with. This proposed legislation will help families across the United States save in a safe, sound and simple manner for their children and grandchildren's college education.

* Again Madam Speaker, this bill does not make any changes to the current 529 college savings program nor the current delivery system of the program through a securities based plan. It simply adds another 529 college savings program delivery option through an FDIC insured deposit.

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