The biggest advantage is that its earnings are tax deferred. But, if you use this money for some other purpose then you have to pay income tax along with 10% tax. To avoid such a situation, you must plan things in advance. So, make your child’s future bright and things easier by investing in 529 college savings. This is the best way to make your dreams come true! 529 plan assets are more advantageous for financial aid considerations: Plan assets are counted at a 5.5% rate by college financial aid offices, compared to the 35% rate used for custodial account assets.
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