Saving For College: 529 Plans, Coverdell Accounts And Other Options

New investment options have been added to some 529 plans. For example, Fidelity recently added the Bank Deposit Portfolio which is comprised exclusively of a deposit into a FDIC insured interest-bearing account. In addition to reviewing changes in 529 plans, this Wall Street Journal article also reviews other college savings options including Coverdell accounts. One little-advertised benefit of the Bush tax cut extension was extending the investors' ability to contribute up to $2,000 a year into Coverdell accounts.