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Originally Posted by VJW
If you’re saving for college, all interest earnings from I BONDS are exempt from Federal income tax when used to finance an education. All interest earnings from I BONDS are also exempt from State and local income taxes.
http://www.treasurydirect.gov/indiv/...nds_glance.htm
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Good point. In addition, if in 15 years you discover that your child either doesn't want to go to college, or gets a scholarship, if you have the $ in an I-bond, you could use the money for something else.
Not sure about the constraints with a 529. baselle