One of the leading regional banks that has its headquarters in Dallas NexBank SSB acquired College Savings Bank. This is a bank that has over the years specialized in offering college saving program. This specialization has seen the Princeton; New Jersey-based bank develop different programs geared towards encouraging college savings for all.
The acquisition, however, does not bring significant changes to the College Savings Bank at least not immediately as they will retain their name and brand which will help all their clients to continue identifying and associating with them as they did before. The Princeton based bank was founded in 1987 and has focused on being a multiple FDIC-insured CD investment options, and high-yield savings account without charging any asset-management fees. This means that students who save with them in the long term are able to see their investment grow all the while ensuring that their money is safe given that it falls under the FDIC-insured CD investment options.
The other often overlooked aspect of having an account here is the potential for tax benefits which stem from having a 529. The incentive of enjoying a tax benefit should always be a huge motivation for anyone to save given the extra money that would have been paid to the government however small can go a long way in growing your personal wealth in this era of compounded interest.
NexBank, on the other hand, was established in 1922 and received a charter. This allows it to offer a number of services ranging from Investment Banking, Commercial Banking, and Mortgage Banking. This makes it a leading financial institution in the region as they serve other financial institutions, individuals, corporations and institutional clients.
By making the acquisition, NexBank will now be in a position to partner with parents as they prepare to take their kids for higher learning. John Holt, their current President, and CEO was delighted as he announced the deal stating,” This is a winning transaction for both parties involved and an important move in our overall funding strategy.” Moving forward, we will be waiting to see the full benefits of the acquisition.