Upromise.com
 

I'd like to first state that I am not associated with this company and do apologize if this is posted in the wrong board http://www.flyertalk.com/forum/smile.gif

CNBC did a segment on Upromise.com on April 19th. It does not have anything to do with FF points except that it deals with Citibank. Its business model deals with college 529 programs and companies who partner with them. They are backed by General Motors so it's not a small venture.

I am putting this on the board as it partners with Citibank. If you have a Citibank credit card, such as the AA affinity card, for every charge put on the card Citibank/Upromise will contribute 1% to a designated 529 plan. At this point they only partner with Solomon Smith Barney but will be bringing Fidelity on soon. There is a $29.95 annual fee for the Citibank program.

You can contribute to your child's 529 or any other child's 529 program. Granted if you do not charge a lot to an Citi/AA card 1% doesn't seem like a lot of money but keep in mind that 529 programs are long-term deals that can go for up to 18 years depending on the child's age.
www.upromise.com

Not a bad idea...I am thinking of getting the Citi/AA card anyway, so I take it you get your miles plus your college savings credit, so it's a double dip, or you have to choose one or the other?

Double dip http://www.flyertalk.com/forum/smile.gif

Points plus the 1% to the 529.

Plans aid college savings
State-sponsored 529 plans offer help with saving for college
Accounts grow tax-free until used to pay costs
http://www.sfgate.com/cgi-bin/articl...28/BU39566.DTL

Just keep in mind that UPromise is not partnered with each state's 529 program, just a couple, and for now just the few that Solomon Smith Barney is managing. (I forget which ones they are.) The good thing about the 529 plans is that when the money is withdrawn, the gains are taxed at the beneficiary's tax rate, which is likely to be low or none for an individual just starting college or vocational school. It is a great college savings tool!

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Happy Travels,

Rhinochaser

My kids are being taxed at my rate -- whuich sort of sucks, and I would expect them to still be a dependant in college, unless this automatically stops at 18?

Nologic: The 'kiddie tax' under which your children are taxed at your rate generally ends at age 14, after which they will be taxed at their own rate even if still being claimed as a dependent. There can be more complexity, so see your 1040 instructions/tax preparer.

I have a 529 plan for the state of Illinois through Smith Barney. It's an excelllent way to save for your child's education. I just signed up on the upromise.com website to start taking advantage of all the big corporate sponsors (ATT, GM, Citibank etc.) If you don't have a plan setup, you could call Dan Steinberg at the Salomon Smith Barney office at the Sears Tower in Chicago. He's helped me with setting up accounts for my two daughters. Everyone should really look into this program.

I don't think you can earn both miles and the 529 rebate. It's in the details. You also can't use AT&T and earn both CO miles and the 529 rebate.

Correct with the exception of the Citibank AA card. It will earn both miles and the 1%. That's why I mentioned the Citibank relationship and no others http://www.flyertalk.com/forum/smile.gif

OK great! Now if they would just get rid of that pesky fee ... I know I want it all http://www.flyertalk.com/forum/smile.gif

Thanks phoenixitc, but I dont see AA cards listed as eligible. From the upromise site:

Eligible Credit Cards

The following credit cards issued by Citibank are eligible to contribute to the Upromise Service for Citibank Cardmembers:
Citibank® Gold, Platinum Select®; Driver's Edge®; Dividend; Premier; Citimiles®; Sony Card from Citibank® Choice®; Citibank® Visa Signature®; Jack Nicklaus Cards; Click Citism Platinum Select®.

What am I missing?

Good eye! I spoke with a CSR and the AA cards DON'T qualify http://www.flyertalk.com/forum/frown.gif

My apologies for this incorrect information, this is not what was originally stated by Upromise.com.

If you shop at one of the participating websites you will get the percentage contribution from the website but not the 1% if you use an AA Citibank card. This might not be advantageous to many who prefer to buy through Clickrewards but Upromise has more websites partnering with them than Clickrewards.

Again my apologies for the misinformation.