Interest rates will vary depending on the type of account used. Two typical options are bank savings accounts and mutual fund accounts. Mutual fund accounts, a collection of stocks and bonds managed by investment professionals, have the potential for a high rate of return but are not FDIC insured. Hall advises families to gather information from the Internet, company savings plans, community banks, library reference books and financial planners to find the best program for their money. She recommends that after establishing a plan, a family do some research on actual college costs.
Costs go beyond tuition and fees.
Room and board, books, transportation and personal or miscellaneous expenses all have to be paid. Aside from savings plans and tax credits and deductions, there are other options for paying the bills. Need-based is for families who need financial help. Merit-based is for students with a talent, such as academics, athletics or citizenship. Scholarships are available for almost any talent under the moon.