Alternate to 529 may be. 7% interest rate and compounded ever 6 months. Safest option - can only invest 10k per person per year - cannot withdraw in the first year - will lose 3 months interest if withdrawn within 5 years - no tax benefit - subjected to Fed tax at the time of withdrawal. If its in ur name then it will be 24% or more on gains as u will still be earning. If in kids name then the tax bracket will be less when they are 18 still a better option for kids