With the recent birth of our first child, it is time to establish a college/savings account. We are trying to determine whether or not a 529 or online savings account would be better. Anyone use the iowa 529? Can someone help with some general guidance? Is the Iowa 529 the best option? Is there a huge tax benefit for Iowa? You can also use a 529 account to pay for K-12 expenses? Concerns we have with the 529 is the limited use of funds that the account can be used for. For instance, if our child decides to forgo a 4 year degree and go into a trade, what can one do with the left over funds? Is it worth it if in the end that happens, would paying the withdrawal fees still put a person further ahead than just a 1.00% interest savings account? We would use Ally and their high interest for saving account as we already use them, currently 1.00%. Initial monthly contributions would be $50-100.