U Promise 529 vs 529 through a bank?

Question

U Promise offers a 529 plan for as little as 50 a month. Most 529's you need 1000 minimum to start, what is the difference and why is it so much cheaper? Sounds too good to be true which concerns me.

Answer 1

There are a lot more consideration than just the minimum amount to open an account.  You also want to look at management or maintenance fee, returns, local or state tax deductibility.  

There is a great article in Money magazine last year regarding 529s.  The article gives you links on to other site on how to compare them.  http://money.cnn.com/2007/07/16/pf/colle...

Best wishes.