College Savings Accounts

Katie is about to turn 1 and we thought it might be a good idea to start a college savings account for her. The plan being to put some in for her on every birthday. Her grandparents, aunts and uncles are also interested in adding to it over the years. We figure it would be better than savings bonds as there is no bonds to keep up with.

Anyone have recommendations on good college savings accounts that would hopefully allow outside deposits?

We'll actually set up one in each kids name.

Savings accounts generaly don't give good interest rates. At least with bonds you know it will increase every term.

You want a 529 investment plan. No tax on earnings if you use it for college, or you can cash it out and pay the deferred taxes if she ends up not going to college. The one I have starts out with aggressive investments and gets more conservative as she gets older.

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Originally Posted by Titus

You want a 529 investment plan. No tax on earnings if you use it for college, or you can cash it out and pay the deferred taxes if she ends up not going to college. The one I have starts out with aggressive investments and gets more conservative as she gets older.

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+1!

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Originally Posted by Titus

You want a 529 investment plan. No tax on earnings if you use it for college, or you can cash it out and pay the deferred taxes if she ends up not going to college. The one I have starts out with aggressive investments and gets more conservative as she gets older.

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Thanks but I'll have to choose a different bank than BofA. I'm not going to do business with them. :(

Don't want this to turn into a political thread though so I'll end it there.

Thanks for the info and I'll see what other banks offer. I assume all the 529 plans are pretty similar. :confused:

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Originally Posted by black roadster

Thanks but I'll have to choose a different bank than BofA. I'm not going to do business with them. :(

Don't want this to turn into a political thread though so I'll end it there.

Thanks for the info and I'll see what other banks offer. I assume all the 529 plans are pretty similar. :confused:

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Most all investment companies offer 529s. It is a government defined program that give you the tax exemptions. Who you buy it from effects how the money is invested, but not how you can spend the money and what the tax savings are. Get it from whoever you feel comfortable with. ;)

Here's some good info:

http://clarkhoward.com/topics/529_guide.html

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Originally Posted by Titus

The one I have starts out with aggressive investments and gets more conservative as she gets older.

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And which one would that be, Sparky? ::Banana::

S.

You might also consider the Texas Tomorrow Fund... it offers some guarantees about paying all of your child's tuition (assuming they go to a public, in-state school)

http://www.texastomorrowfunds.org/

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Originally Posted by black roadster

Thanks but I'll have to choose a different bank than BofA.

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How about the Bank of onething? I promise to let you know one month before her birthday each year if the kid should ask for a shovel ::Banana::

Actually, I know nothing about this subject, but I am glad you are planning this far in advance.

You waited a year. Ours was up and running in the first 2 months. Of course that was one of his xmas presents and he was born in November. My uncle takes care it. I'll get specifics for you BR, but his money is climbing.