This Bank Savings Option provides FDIC insurance for your investment. It offers a guaranteed return (earnings) on your investment and the stability of knowing your principal investment may not lose its value. Investments in the Bank Savings Option will earn varying rates of interest. The interest rate generally will be equivalent to short-term deposit rates. Contributions to and earnings on the investments in the Bank Savings Option are insured by the FDIC1 on a per participant, pass-through basis to each account owner up to the maximum amount set by federal law, currently $250,000. The Bank Savings Option does not provide a guarantee of any level of performance or return or offer any additional guarantees. This Option may be appropriate if you want the security of a safe investment and your time horizon is less than 5 years.

Cash Equivalent: 100% Bank Savings (FDIC Insured)

Strategy

The Bank Savings 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 Achieving a Better Life Experience Program Trust at the Bank. The Bank also serves as Program Manager of the Plan.

Investments in the Bank Savings 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 Option APY please go to Price and Performance.

FDIC Insurance

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

FDIC insurance is provided for the Bank Savings Option, which invests in an FDIC-insured omnibus savings account held in trust by the Enable Savings Plan at the Bank. Contributions to and earnings on the investments in the Bank Savings 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 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 Option plus the account owner's other deposits at the Bank. The Enable Savings Plan Alabama, the State of Alabama, the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Investment Officer, or First National Bank of Omaha 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 Option. Furthermore, the Bank Savings 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 Option nor any investments return earned on the contributions are guaranteed by the State of Alabama, the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Treasurer, the Nebraska State Investment Officer, or First National Bank of Omaha, 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 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 State of Alabama, the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person can guarantee a minimum rate of return. Except for accounts invested in the Bank Savings 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 Alabama, the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person. The value of your account may vary depending on market conditions, the performance of the Investment Option you select, timing of purchases, and fees. The value of your account could be more or less than the amount you contribute to your account. In short you could lose money.

 

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

 

 

Underlying Estimated Fund Expenses2: 0.00%
Program Management Fee: 0.50%
TOTAL: 0.50%

 


1Contributions to and earnings on investments in the Bank Savings Option is insured by the FDIC on a per-participant, pass-through basis to each account owner up to the maximum limit established by federal law, which is currently $250,000

2As of July 1, 2017