529 College Savings Day in North Dakota
A Time to Plan for the Higher Education of North Dakota's Children

BISMARCK-May 29, 2009-Gov. John Hoeven proclaimed today North Dakota’s “529 College Savings Day” - a day that signifies the importance of higher education to North Dakota families and their futures. The date (5/29) corresponds to the tax-advantaged 529 college savings plans, with North Dakota residents benefiting from the state-sponsored College SAVE Plan. The plan is one of the most popular ways for parents, grandparents, and other family members and friends to save for children’s college educations.

“College SAVE offers many incentives for investors,” said Eric Hardmeyer, BND president. “In conjunction with new parameters to the matching grant program for North Dakota residents, a range of investment options, and tax-free earnings on qualified withdrawals, College SAVE is a smart option to save for a child’s future education.”

With the new expansion that began January 1, the $300 matching grant program will now benefit College SAVE investors who earn less than $40,000 annually (or $80,000 for couples who file jointly).* In addition to the new income parameters, investors who earn less than $20,000 annually (or $40,000 for couples who file jointly) can apply for matching grants for three consecutive years. The opportunity for families earning less than $40,000 to receive up to $900 from Bank of North Dakota in matching funds can be a substantial boost to their college saving efforts.

College SAVE is administered by Bank of North Dakota (BND), the only state-owned Bank in the nation.** North Dakota offers an annual state tax deduction for contributions by North Dakota taxpayers who are College SAVE account owners of up to $5,000 ($10,000 for married couples filing jointly).***

Another way to bolster college savings is to enroll in the free Upromise rewards service, which lets members earn savings for college through eligible purchases with many of America's leading grocery stores, restaurants, and retailers. North Dakota families can link their Upromise rewards account to their College SAVE account, and savings of $25 or more will automatically transfer into their college savings account on a quarterly basis. Family and friends can also help add to children’s college savings with everyday purchases.

*Matching grants are subject to the availability of funds and can be reduced or stopped at Bank of North Dakota’s discretion.

** Earnings on non-qualified distributions are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. For more information about North Dakota's College SAVE Plan, call 1-866-SAVE-529 (1-866-728-3529) or visit www.collegesave4u.com to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Upromise Investments, Inc., Distributor and Underwriter.

*** Rollovers from another state's 529 plan are not considered eligible for the state income tax deduction.

If you are not a North Dakota taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

The College SAVE Plan is a 529 plan established by the State of North Dakota. Bank of North Dakota acts as trustee of the College SAVE Trust and is responsible for administering the Plan. Upromise Investments, Inc. and Upromise Investment Advisors, LLC serve as the Plan Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including effecting transactions and marketing and distribution of the Plan. The Vanguard Group, Inc., provides underlying investments for the Plan. The Plan's Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal fund securities and the value of units will vary with market conditions. Investment returns are not guaranteed, and you could lose money by investing in the College SAVE Plan.

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