Bank Savings Individual Investment Option

Strategy
The Bank Savings Individual Investment Option seeks income consistent with the preservation of principal and invests all of its assets in a savings account (the Savings Account) held at First National Bank of Omaha (the Bank). The Savings Account is an omnibus savings account insured by the FDIC and is held in trust by the Nebraska Educational Savings Plan Trust at the Bank. The Bank also serves as Program Manager of the Plan.

Investments in the Bank Savings Individual Investment Option will earn varying rates of interest. The interest rate generally will be equivalent to short-term deposit rates. Interest on the Savings Account 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 Savings Account on monthly basis. The interest on the Savings Account is expressed as an annual percentage yield ("APY"). The APY on the Savings Account will be reviewed by the Bank on a periodic basis and may be recalculated as needed at any time. To see the current Bank Savings Individual Investment Option APY please go to Prices & Performance.

FDIC Insurance
Subject to the application of Bank and FDIC rules and regulations to each account owner, funds in the Bank Savings Individual Investment Option will retain their value as a result of the FDIC insurance. In contrast, all other Investment Options of the Plan are not insured by the FDIC.

FDIC insurance is provided for the Bank Savings Individual Investment Option only, which invests in an FDIC-insured omnibus savings account held in trust by the NEST Direct Plan at the Bank. Contributions to and earnings on the investments in the Bank Savings Individual Investment Option are insured by the FDIC on a per participant, pass-through basis to each account owner up to the maximum amount set by federal law, currently $250,000.

The amount of FDIC insurance provided to an account owner is based on the total of: (1) the value of an account owner's investment in the Bank Savings Individual Investment Option, and (2) the value of all other accounts held by the account owner at the Bank (including Bank deposits), as determined in accordance with by 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 Bank Savings Individual Investment Option plus the account owner's other deposits at the Bank. The NEST Direct Plan, the Program Manager, the State of Nebraska, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer or its authorized agents or their affiliates 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 Bank Savings Individual Investment Option. Furthermore, the Bank Savings Individual 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 Bank Savings Individual Investment Option nor any investments return earned on the contributions are guaranteed by the State of Nebraska, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, the Bank or its authorized agents or their affiliates or any other federal or state entity or person. 

Risk
To the extent that FDIC insurance applies, the Bank Savings Individual Investment Option is primarily subject to the risk that the return on the underlying Savings Account will vary because of changing interest rates and that the return on the Savings Account will decline because of falling interest rates.

It is important to remember that none of the Nebraska State Treasurer, the Nebraska Investment Council, the Nebraska State Investment Officer, the State of Nebraska or its officials and employees, or the Program Manager or its authorized agents or their affiliates can guarantee a minimum rate of return. Except for accounts invested in the Bank Savings Individual Investment Option, 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, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, the Program Manager or its authorized agents or their affiliates, or any other party. The value of your account may vary depending on market conditions and the performance of the Investment Option you select. The value of your account could be more or less than the amount you contribute to your account. In short you could lose money. See "Part 10 - Certain Risks to Consider."

Prices and Performance: Click here to review.

Expense Ratio: The estimated overall expense ratio for this Portfolio is:

Underlying Estimated Fund Expenses:1 0.00%
Program Management Fee: 0.18%
State Administrative Fee: 0.02%
TOTAL: 0.20%

1 As of March 31, 2016.

Historical prices: Search for historical price information