The Checking Investment Option provides FDIC insurance for your investment and allows you to write a check or use a debit card to withdraw funds from the Checking Investment Option. All deposits must be made directly to the Plan and not through an ATM machine or by walking into a bank. You cannot use your check or debit card from the Checking Investment Option to withdraw from any other Investment Option. This Option can be used to pay for daily and repetitive expenses.
Cash: 100% Checking Option (FDIC Insured)
Strategy
The Checking Investment Option seeks preservation of principal and invests all of its assets in a checking account held at Fifth Third Bank. The Checking Investment Option balances are insured by the FDIC up to the maximum amount permitted by law. The standard insurance amount is $250,000 per depositer, for each deposit insurance ownership category. Please visit www.fdic.gov for more information about FDIC insurance coverage. The checking account is opened through and under the restrictions and oversight of the Plan, and shall be subject to all requirements and limitations set forth in the Program Disclosure Statement, as amended. All assets invested through the Checking Investment Option are, and at all times will remain, assets of the Nebraska Achieving a Better Life Experience Program Trust until withdrawn. Account Owners who invest in the Checking Investment Option are able to write checks or use a debit card to pay for Qualified Disability Expenses. Account Owners should retain documentation (for example, receipts) of all distributions for Qualified Disability Expenses for their records.
Investments in the Checking Investment Option will earn varying rates of interest. Contributions will not earn interest until the hold period expires and the funds are deposited to the account at Fifth Third. The interest rate generally will be equivalent to short-term deposit rates. Interest will be compounded daily based on the actual number of days in a year (typically 365 days, except for 366 days in leap years) and will be credited to the Checking Investment Option on a monthly basis. The interest on the Checking Investment Option is expressed as an APY. The APY on the Checking Investment Option will be reviewed by Fifth Third Bank on a periodic basis and may be recalculated as needed at any time. To see the current Checking Investment Option APY please go to Price and Performance. The Plan will not permit the Checking Investment Option to be established in an Enable Savings Plan account if the Plan determines that distributions from such account are subject to restrictions by court order or otherwise.
Exchanges and transfers into the Checking Investment Option require two business days to process. These funds will be available for withdrawal on the second business day.
FDIC Insurance
Subject to the application of Fifth Third Bank and FDIC rules and regulations to each account owner, funds in the Checking Investment Option will retain their value as a result of the FDIC insurance. In contrast, the Target-Risk Investment Options of the Plan are not insured by the FDIC.
FDIC insurance is provided for the Checking Investment Option, which invests in an FDIC-insured checking account within The Nebraska Achieving a Better Life Experience Program Trust. Contributions to and earnings on the investments in the Checking Investment Option are insured by the FDIC up to the maximum limit established by federal law, which currently is $250,000 per depositor.
The amount of FDIC insurance provided to an Account Owner investing in the Checking Investment Option is based on the total of: (1) the value of an Account Owner’s investment in the Checking Investment Option, and (2) the value of all other deposits held by the Account Owner at Fifth Third Bank, as determined in accordance with Fifth Third Bank and FDIC rules and regulations. Each Account Owner should determine whether the amount of FDIC insurance available to the Account Owner is sufficient to cover the total of the Account Owner’s investment in the Checking Investment Option plus the Account Owner’s other deposits at Fifth Third Bank.
The State of Nebraska or its officials/employees, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer or any other federal or state entity or person are not responsible for determining the amount of FDIC insurance provided to an Account Owner.
No Other Guarantees
FDIC insurance is the sole insurance available for the Checking Investment Option. Furthermore, the Checking Investment Option does not provide a guarantee of any level of performance or return or offer any additional guarantees. Like all of the Investment Options, neither the contributions into the Checking Investment Option nor any investments return earned on the contributions are guaranteed by the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, or any other federal or state entity or person.
Risk
To the extent that FDIC insurance applies, the Checking Investment Option is primarily subject to the risk that the return on the underlying Checking Investment Option will vary because of changing interest rates and that the return on the Checking Investment Option will decline because of falling interest rates.
It is important to remember that none of the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, or any other federal or state entity or person can guarantee a minimum rate of return. Except for accounts invested in the Bank Savings or Checking Investment Options, funds deposited in an account are not insured by the FDIC. Furthermore, funds deposited in an account are not guaranteed or insured by the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, or any other federal or state entity or person. The value of your account may vary depending on market conditions, the performance of the Investment Option you select, timing of purchases, and fees. The value of your account could be more or less than the amount you contribute to your account. In short you could lose money.
Expense Ratio: The estimated overall expense ratio for this Portfolio is:
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Underlying Estimated Fund Expenses: |
0.00% |
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Program Management Fee: |
0.00% |
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TOTAL: |
0.00% |
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