INVESTING IN DREAMS
PROGRAM DESIGN BLUEPRINT
PROGRAM DESIGN BLUEPRINT 5: CHOOSING AN ACCOUNT AND FINANCIAL PARTNER
5a) ACCOUNT FEATURES. To help you think through which type of account might be the best fit for your program, review the list of ideal
account features in the table below and select the three features that are most important for your participants and program coordinator. Refer to
Chapter 5 for explanations of all the account features.
ACCOUNT FEATURES FOR PARTICIPANTS
Which three of the following features are most important for your participants?
No Social Security number required for account opening
Multiple deposit options
Financial institution branches conveniently located for the target population
The ability for families to track accounts and incentives
No or low fees, and no or low minimum balance and minimum deposit requirements for families
Interest-bearing or investment growth potential
Account funds that do not count towards asset limits for public benefits
ACCOUNT FEATURES FOR PROGRAM COORDINATORS
Which three of the following features are most important for the program coordinator?
The ability to open large numbers of accounts at a time
The ability to provide periodic account activity reports to program coordinator
A system for differentiating between participant deposits and incentive funds
Custodial or trust accounts held by a third party for the benefit of the child
Account structure that permits withdrawals only as approved by the account custodian or program coordinator.
No or low fees for the CSA program
INVESTING IN DREAMS
PROGRAM DESIGN BLUEPRINT
PROGRAM DESIGN BLUEPRINT 5: CHOOSING AN ACCOUNT AND FINANCIAL PARTNER
5b) ACCOUNT TYPE. Use your selections from 5a of the most important account features for participants and program coordinators to
consider which account type(s) might work best for your program. Refer to Chapter 5 for more information on each account type and how they
compare to the list of ideal features, as well as Appendix II, which has side-by-side comparisons of the features of each account type.
KEY CONSIDERATIONS
RECORD YOUR IDEAS
Potential Account Type(s)
ŠŠ
Given the account features you selected as most important for
participants and the program coordinator in 5a, which account
type(s) best meets your criteria?
Potential Drawbacks
ŠŠ
What are the potential drawbacks of your selected account
type(s)? (e.g., the fees charged to the program coordinator may
be high)
ŠŠ
How much of an impact could these drawbacks have on the
functionality of the accounts for either participants or the
program coordinator? (e.g., high fees could increase the overall
program budget)
ŠŠ
How might you be able to work around these drawbacks? (e.g.,
negotiating with the financial institution for lower fees)
Savings accounts
Pooled savings accounts
Individual custodial savings accounts
529 plan college savings accounts
Omnibus 529 accounts
Entity-owned 529 accounts
Parent-/guardian-owned 529 accounts
INVESTING IN DREAMS
PROGRAM DESIGN BLUEPRINT
PROGRAM DESIGN BLUEPRINT 5: CHOOSING AN ACCOUNT AND FINANCIAL PARTNER
KEY CONSIDERATIONS
Account Custodian
ŠŠ
If you are planning to use a custodial structure for your account
(e.g., individual custodial savings accounts or entity-owned
529 accounts), will the program coordinator serve as account
custodian?
ŠŠ
If not, what other organizations or agencies might be a
good fit for the account custodian role? (Key attributes for an
account custodian include that it is well-known and trusted in the
communities served by the CSA program and has the sustainability
and commitment to hold the accounts until participants are ready to
use their account funds. Refer to Chapter 5 for more information.)
RECORD YOUR IDEAS
INVESTING IN DREAMS
PROGRAM DESIGN BLUEPRINT
PROGRAM DESIGN BLUEPRINT 5: CHOOSING AN ACCOUNT AND FINANCIAL PARTNER
5c) FINANCIAL INSTITUTION PARTNER. Use the questions below to help you think through which financial institutions might make a
suitable partner. Refer to Chapter 5 for more information on selecting a financial institution partner and on the potential benefits of a CSA partnership for
financial institutions.
KEY CONSIDERATIONS
Leveraging Existing Relationships
ŠŠ
With which financial institutions does your organization or
do your partners currently have relationships that could be
leveraged?
●● Do any of those financial institutions potentially have the
capacity and interest in partnering on a CSA program?
●● Do those financial institutions already have an account
product in place that would work for your program as-is or
with modest tweaks?
●● What leverage points do you have with the financial
institutions (e.g., potentially moving your organization’s
general funds account to them)?
Potential New Relationships
ŠŠ
Which other financial institutions in your area (or in other states,
in the case of 529s) might have the capacity and interest in
partnering on a CSA program?
ŠŠ
Do any of those financial institutions already have an account
product in place that would work for your program as-is or with
modest tweaks?
RECORD YOUR IDEAS
INVESTING IN DREAMS
PROGRAM DESIGN BLUEPRINT
PROGRAM DESIGN BLUEPRINT 5: CHOOSING AN ACCOUNT AND FINANCIAL PARTNER
5d) SUMMARY. Based on your responses in 5b and 5c, use the space below to identify the account type(s) you are considering for your program
and your next steps for exploring potential financial institution partners.
ACCOUNT TYPE(S) AND FINANCIAL INSTITUTION PARTNER(S)