NYC Kids RISE owns and manages your child’s NYC Scholarship Account (including contributions made through Community Scholarships). This means that only NYC Kids RISE can put money into that account. To start saving your own money for your child’s future and receive additional rewards from NYC Kids RISE, open a separate college and career savings account for the benefit of your child.
529 Account: A 529 account is a type of investment account created to help families save for college and career training. Money in a 529 account can grow over time, but it can also lose value. Money in this account grows tax-free, and earnings are tax-free upon withdrawal if used for qualified higher education expenses at eligible institutions.
Amalgamated Save for College Bank Account: This is a traditional savings account at Amalgamated Bank, with a child named as the beneficiary. Deposits in this savings account are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
529 Account: Money in this account can grow over time, but can also lose value based on the investments selected.
Amalgamated Save for College Bank Account: Money in this account will earn interest.
529 Account: This account comes with tax benefits, including tax-free earnings and potential state income tax deductions.
- Money in the account grows state and federal tax-deferred, meaning earnings do not count toward your taxable income.
- New York State taxpayers may deduct up to $5,000 per year ($10,000 for married couples filing jointly) for contributions to this account when calculating state taxable income.
- State tax deductions may be subject to recapture in certain circumstances such as rollovers to another state’s 529 plan or nonqualified withdrawals.
- Withdrawals are federal and NY State tax-free, as long as they are used for qualified higher education expenses.
Amalgamated Save for College Bank Account: This account does not come with tax benefits.
529 Account: This account comes with tax benefits, including tax-fr529 Account: To enroll in this account, you will need:
- A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for the account owner and the beneficiary (someone who you would want to own the account in the event of your death);
- Date of birth of the account owner and beneficiary;
- An email address to enroll online for the account owner;
- A verified U.S. address.
Amalgamated Save for College Bank Account: To enroll in this account, you will need:
- An email address for the account owner (recommended).
- A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the account owner and the beneficiary;
- A valid photo ID of the account owner;
- Address and date of birth of the account owner;
- Child’s name and date of birth; and
- An email address for the account owner (recommended).
529 Account: Money in this account is specifically for college and career education expenses (including textbooks, laptops, tuition, etc.). Withdrawals from this account may incur tax penalties if the money is not used for higher education expenses.
Amalgamated Save for College Bank Account: There are no legal restrictions to uses in this account. There are no withdrawal penalties with this account. However, the intent of this kind of account is for a child’s college and career education and not for other purposes.
529 Account: No minimum amount to deposit is required for this account. However, NY 529 College Savings Program may close your account if there are no deposits after six months. If they close your account, NY 529 will send you information by mail with instructions on how to reopen the account. Once they close the account, you will have another six months to make a deposit (which can be as low as $1) by mailing a check or money order, or by calling NY 529 at 877-697-2837. If you do not make a deposit in that time period, you will have to fill out a new enrollment form to reopen your account.
Amalgamated Save for College Bank Account: No minimum balance or minimum amount to deposit is required for this account. However, your account may be closed after nine months if you do not deposit any funds into it, so we encourage you to make a deposit of at least $5 shortly after opening.
529 Account: You can deposit whatever amount you want and keep any amount you want in this account (up to the maximum account balance allowed by the NY 529 Direct Plan).
Amalgamated Save For College Bank Account: You can deposit whatever amount you want and keep any amount you want in this account. You need to make at least one deposit within the first 9 months.
529 Account: Possibly. Visit our Downloadable Resources page to find more information on public benefits impacts. For more support, call NYC Kids RISE at 833-KID-RISE (833-543-7473).
Amalgamated Save for College Bank Account: Possibly. Visit our Downloadable Resources to find more information on public benefits impacts. For more support, call NYC Kids RISE at 833-KID-RISE (833-543-7473).
Possibly. If your household income is less than $50,000, savings in this account will usually not affect your child’s eligibility for federal financial aid. If your household income is greater than $50,000, only a small part of the savings in this account will be counted for federal financial aid eligibility. These answers may change in future years. For more detailed information, read the Impact on Future Financial Aid guide.
