The state treasurer's office Wednesday announced a new component to the Bright Start College Savings Program, which allows families to save for college tuition whenever they go shopping.

The new Bright Start Futuretrust MasterCard contributes a 1 percent cash rebate on the amount of every purchase to each card member’s Bright Start College Savings Program account, according to a release from state treasurer Alexi Giannoulias's office.

“This is like a frequent-flyer program geared toward families saving for college,” Giannoulias said. “Families can use the cash rewards they earn from the program as another source of college money without changing their spending habits."

Bright Start is an Illinois-sponsored 529 plan that allows families to save and invest money tax free to pay for college expenses.

Card members who also buy goods and services at more than 550 merchant partners (consisting of online retailers, stores, catalogs and restaurants) will also earn additional rebates. The Futuretrust Preferred Merchant Network includes: Target (5 percent); Toys R Us (2 percent); Wal-Mart (2 percent); Urban Outfitters (4 percent); Sears (4 percent); Land’s End (5 percent); and Home Depot (2 percent). These rebates are added to the 1 percent cash rebate.

In addition, the Bright Start Futuretrust MasterCard is the only 529-linked credit card in the nation that earns immediate rewards for its card members. Futuretrust will deposit $25 into every credit card holder’s Bright Start account when they use the card for the first time, the release said.

Giannoulias noted that parents, grandparents, other relatives and friends are eligible to apply for a Bright Start Futuretrust MasterCard and designate a Bright Start beneficiary of their choice to receive the rebate rewards.

Every purchase made by a Bright Start Futuretrust MasterCard member or anyone who is linked to the rebate program is tracked by Futuretrust. After a program participant generates $25 worth of rebates, the money is automatically swept into their Bright Start account on a quarterly basis.

As with any credit card, Giannoulias cautioned that consumers should use the Bright Start Futuretrust MasterCard responsibly and should not get one to achieve a higher level of spending.

“This credit card should not be used to incur more debt or as a substitute for a family’s obligation to save for a child’s higher education. It’s a supplement, not a replacement,” Giannoulias said. “But if you have a credit card that earns you airline miles, why not replace it with one that earns you money toward your child’s education?”

Bright Start account holders can earn rebates without signing up for the Bright Start Futuretrust MasterCard. They can simply use another major credit card to link to Futuretrust’s Merchant Partner Network and take advantage of the rebates whenever they use their credit card.

Click here for more information on Illinois' Bright Start College Savings Plan, or call 877-432-7444

Copyright 2008, Sun-Times News Group