<prompt> Human: My banking primary banking institution offers Coverdell ESAEducation Savings Account Certificate, but their rates are pretty lousy. Ive seen Vanguards 529 plans but I am not sure where to turn to. Does anyone have suggestions on what I should do? Thanks.  <response>: The options for saving on behalf of children are not as good as other options, such as saving for retirement. So you might do better at this point to either save more for retirement to free up money in future years that doesnt have to go to that purpose, or just set up a taxable but tax-efficient account that you can then designate for e.g. educational expenses in the future when you have a better idea of what sort of educational expenses you might want to contribute to.For example, contributing 5500 to a Roth IRA each year will give you 100Kish in contributions over 18 years that you can then withdraw and use for some other purpose, e.g. contribute to a 529 plan. Money in a Roth IRA is not considered as an asset for financial aid purposes, so it can increase the financial aid you qualify for if thats a consideration. 529 plans do have unique state tax treatment in many cases, so thats something to factor into your plans, depending on your state. 