Savings bank vs. saving bond?

Question

my parents want to find a way to save money for me to go to college. is it better to save the money in a savings bank or to buy a savings bond?

Answer 1

They should talk to the people at the bank about setting up what's called a 529 plan. This allows them to deposit the money tax-free and, if it is used for educational purposes, there will be no taxes on the money when you withdraw it.

Info:

http://www.sec.gov/investor/pubs/intro52...

http://en.wikipedia.org/wiki/529_plan