How to start saving for your child’s future

posted on 2 September 2020
How to start saving for your child’s future

Union State Bank would like provide knowledge of college saving opportunities in North Dakota. While Union State Bank does not offer any program itself, our intent is to create awareness of Bank of North Dakota’s College SAVE program and the 529 Plan. Opportunities can be further discussed through BND outlets or by visiting with Julie Graney at Graney Financial in Hazen and Beulah.

What is 529 Plan?

When a person hears “529” their mind should instantly go to tax savings. Now, it does not mean you will spend less on taxes, but it does mean that you could utilize a tax-deferred opportunity to better save for college. 

The section 529 refers to a revenue code that pertains to a college saving tool. Majority of 529 plans are sponsored by the state, North Dakota included. Through the Bank of North Dakota, North Dakotans can be eligible for a state tax deduction. 

Growing your assets “tax-deferred,” means that your tax contributions earnings accumulate federal and state tax-free. Which means, those funds could go towards a secondary education instead of all to taxes. 

In North Dakota it offers state tax deduction of up to $5,000 ($10,000 if married, filing jointly) to North Dakota taxpayers of your contributions from your taxable income.

Read more at:

How to get started


Enroll at the “enroll” tab at the top right of the website

  • To open an account the child must have a social security number or taxpayer identification number
  • Must complete the application and submit
  • Open a college save account for as little as $25 and can establish a recurring contribution of $25 per month or $75 per quarter.
  • The beneficiary is whom you are saving for, successor is the adult who will oversee and control the account in the event of your death


  • If beneficiary decides not to go to college, stay invested, in case they decide on school later – there is no age or time limit
  • OR change designated beneficiary to eligible family member
  • Withdrawing funds designated for education expenses is subject to federal and state income taxes and may be subject to 10 % federal penalty tax.

About BND Match

The BND Match program’s purpose is to help North Dakota families start planning for their children’s future. 

  • Program matches up to $300
  • Applicants must be ND residents and must meet income criteria
  • Individual applying must be 15 years or younger
  • Any contributions made within 12 months of opening account can quality for up to $300 match

For more information:

New Baby Match program

Start saving even earlier with the New Baby Match program, offered by College SAVE and the Bank of North Dakota. BND teamed up with College SAVE to offer a new financial program for newborns specifically. 

BND will match up to $200 in contributions for every newborn. Newborns are considered 12 months old or younger. This is specific to North Dakota and anyone can apply for the program. One grant is allowed per child and can be applied for by anyone – including parents, grandparents, aunts/uncles, or friends. 


  • If a College SAVE account is set up, apply for the New Baby Match
  • If not, enroll for College SAVE and then one can apply for the New Baby Match
  • The New Baby Match contributions is then added to the College SAVE account
  • All funds contributing to a child’s future education. 

For more information:

Would you rather save now or borrow later?

College is an investment. Whether a person starts to think about that invest at their birth or as they are filling out college applications. Having a secondary education is crucial to attaining jobs and certain positions in today's society. Getting ahead and thinking about your child’s future and investing in that is worth every penny. 

Example from site: Terry’s parents start investing $100 a month into a 529 plan account right after his birth. In 18 years (assuming a 5% annual rate of return), they could potentially save more than $35,000.

For more information: