4. Savings Bonds
Savings bonds are a very safe investment because they are backed by the credit of the US government. The principal and interest earned on the bond cannot be lost due to market changes. Savings Bonds are another great way for family and friends to contribute to your child's education and can add up very quickly. Also, the Education Bond Program makes the interest on some savings bonds tax free when the bonds are used to pay for higher education expenses or rolled over into your 529 plan.
