I have a savings account for my daughter that I deposit money into every month, but I want a 'high yielding' account (?) . I am not sure what I can do to make sure that my daughter has a sufficient college fund. Any information would be great.|||Among the highest interest bearing accounts is with ING Direct, you "link" it to your checking and can transfer money in and out, I believe they are earning 1% or so right now, but I've been over 4% in the past. Not bad, no minimum, no fees. Not bad, check it out.|||a 529 savings plan|||Read this - but take it with a grain of salt.
There are seminars that charge thousands for what I am about to tell you.
When your daughter applies for college the FAFSA - financial aid form will look at
all your taxable accounts.
They do not count assetts such as cars and homes.
So work on paying those off starting today.
Do you want your daughter to get maximum grants due to need and the best student loans that you can later pay off at incredibly low rates?
Keep as little as possible in taxable account.
2 years before she gets in college, have your cars paid off, any loans paid off, and your mortgage completely paid off.
The fafsa does not look at these.
Also sock away as much money you can into 401K's and IRA's since these are not counted either.
This is how the rich get richer - just letting you know what those seminars are all about.
Some try to sell you annuities to hide the money= but to me they are so expensive - not worth it.
Keep in mind that a 529 plan will be considered her income for college and will be expected to withdraw at a higher rate than any of your savings. This may get her less loans and grants./|||Open a 529 account, either with your state's plan or at Vanguard. Arrange to make automatic transfers to it on a monthly basis.|||A 529 Plan|||529 plan.
For more information see this link for consumer advocate Clark Howard:
http://clarkhoward.com/liveweb/shownotes…
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