What are the different types of college savings?
Ava Robinson
Published Apr 07, 2026
There are two types of tax-advantaged college savings plans designed to help parents finance education: 529 Plans and Education Savings Accounts (also known as ESAs or Coverdell accounts).
What are the four savings categories?
Four Types of Savings You Should Have
- Basic savings account. Start saving for your emergency fund, a big purchase or college for the kids.
- Money market savings. Enjoy the money market features and great rates of a premium account for higher balances.
- Certificates.
- Individual retirement accounts.
What are the different types of 529 plans?
There are two types of 529 plans, a prepaid tuition plan and a savings plan. Deciding between a savings plan and a prepaid tuition plan is an important first step.
What is the best savings account for college?
Summary of best student savings accounts
| Account name | Best for… | APY |
|---|---|---|
| DCU Primary Savings | Earning interest | Up to 6.17% |
| PNC Virtual Wallet Student | Saving and budgeting | 0.01% in Reserve and Growth accounts |
| Capital One 360 Kids Savings | High school students | 0.3% |
| Bank of America Advantage Savings | Nationwide access | 0.01% |
What is the best way to save for child’s college?
6 ways you can save for college
- Mutual Funds.
- Custodial accounts under UGMA/UTMA.
- Qualified U.S. Savings Bonds.
- Roth IRA.
- Coverdell ESA.
- 529 plan.
There are two types of 529 plans, a prepaid tuition plan and a savings plan.
What are the different types of college savings accounts?
Here are four types of savings accounts that can help you plan for your kid’s college education: 1. 529 plan 529 college savings plans are the most common way to save for your kid’s college education. That’s because there are tax advantages to the account, plus the potential to earn a return on your investment.
What should I do to save for my Child’s College?
If you are a new parent or your kids are young, you’ll want to do one thing right now, if you haven’t already: Start looking into college savings plans. And then do more than look among the best college savings plans. Pick one and start socking money away.
How to choose the right college savings account for your child?
But making the right choice while your child is young—even a baby—can save you a lot of angst down the road when it comes time to apply for financial aid and search for scholarships. You can find the right type of college savings account for your child by answering a few questions.
Which is the best account for education savings?
Types of Education Savings Accounts and Which Account is Best 1 Coverdell Education Savings Account. Coverdell Education Savings accounts are great because they allow the money to be spent for elementary through college education – a much larger range than other 2 529 College Savings Plan 3 UGMA Custodial Account. …
