edexpress College Savings Program
Filed Under Other · Tagged:
[tag]Edexpress[/tag] distinguishes itself from other [tag]college savings clubs [/tag]in several ways:
1. First, a $24.95 annual membership fee is charged. According to edexpress, the fee allows them to pass 100% of merchant rebates on to members..."the result is that merchant rebates in the [tag]edexpress program[/tag] are significantly higher than those of similar loyalty programs." The pitch is that paying the membership fee will quickly pay for itself (and more) in the form of higher rebates.
2. Second, earned rebates in the edexpress plan are placed into a third-party "grantor trust" from which members can direct the money be used for "any educational purpose at any level of education" including (but not limited to) funding a [tag]529 account[/tag]. Members can also use their rebates to pay [tag]student loans[/tag].
3. Finally, edexpress has gone further than the other [tag]college savings[/tag] clubs with "value-added" services by adding "edzone" to the membership package. This is an [tag]on-line educational resource[/tag] that member families can access for things such as [tag]homework help[/tag], research and reference, college information, scholarship opportunities, etc.
| Membership Fee: $24.95 |
Affiliated Credit Card Available?: Being Developed |
| In-store Merchant Network?: Currently None | Affiliated Credit Card Required?: N/A |
|
On-line Merchant Network?: Extensive - Approximately 400 Merchants |
Register Other Credit Cards?: No |
|
Required to Shop Through Website for On-line Rebates?: Yes |
Register Loyalty Cards?: No |
|
Frequency of Transfers to 529 Account: Monthly - Not Necessarily to a 529 Account |
Cash Withdrawals Allowed?: Yes |
| Can Others Direct Contributions?: Yes | [tag]529 Plan[/tag] Options: Not Limited to 529 Plans |
|
Other Feature/Services: edzone - On-line Educational Resource; $10 Reward for Family/Friend Referral Discounted Gift Certificates and Coupons |
Rebate Reporting: Yes |
Summary:The edexpress pitch is enticing, but it's difficult to determine whether it's a worthwhile program for most. Edexpress states their merchant rebates average 7%. The edexpress claim of higher rebates is supported by a sampling of the rebate rates published on the [tag]529 savings club[/tag] websites. We compared the published rebate percentages for forty-nine retailers common to the four 529 savings clubs and found that edexpress had the highest rebate most of the time as well as the highest average rebate (see below). Still, if the typical edexpress rebate is, say, 2% more than can be earned from no-fee clubs like Upromise or BabyMint, you would need to spend about $1,250 to cover the $24.95 edexpress membership fee.
| Based on Data From Websites (11/04) | BabyMint | edexpress | futuretrust | Upromise |
| Avg Rebate - 49 Common Retailers | 4.27% | 6.33% | 4.05% | 4.51% |
| Highest Rebate (including ties) | 7/49 | 37/49 | 2/49 | 10/49 |
Edexpress' lineup of on-line merchants is impressive, so you should visit the edexpress website and determine for yourself whether your family could benefit from the shopping program and the edzone offerings. A 30-day free trial would be a good way for edexpress to sell their program, but currently this is not offered. You can get a free year's membership if you join Blockbuster Online through the edexpress website.