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.