Should you build a college fund?

If you’re building a college fund, saving as much as you can will leave you with more money to pay for school. However, saving is only one part of the equation. If you use the right accounts, you can help the money you’ve saved grow. The simplest place to keep your college fund is in a savings account. They’re easy to open, safe, and pay interest.

Are 529 plans a good choice for a college fund?

529 plans are a popular choice for people who want to start a college fund. These accounts offer tax advantages when you use them to pay for qualified education expenses. Money in the account grows tax-deferred and you pay no taxes on withdrawals as long as you use money from the account on qualified expenses, such as tuition or room and board.

Where should I keep my college fund?

The simplest place to keep your college fund is in a savings account. They’re easy to open, safe, and pay interest. However, most savings accounts don’t offer good interest rates, so you won’t see much growth.