What kind of savings account should I start for college?
Put your savings to work for you by opening an Indiana CollegeChoice 529 Savings Plan. It only takes $10 to get started, and your account grows, free of taxes. Withdrawals for education expenses are also tax-free. Plus, Indiana taxpayers are eligible for a state income tax credit of 20% of all money contributed to a 529 account, up to $1,000 credit per year. You can turn that money into another 529 deposit, and another tax credit for the following year to really watch it grow.
You can also sign up for Upromise, and part of what you spend on eligible purchases (like groceries, gasoline and shopping) will be contributed automatically to your 529 Savings Plan.
Putting even a few dollars into a savings account each month really helps. Talk to your bank or a financial planner about safe investment options that offer better interest rate returns than a traditional savings account.