One of the best things about 529 savings plans is that they are open to everyone. You can have any income, and intend to save pretty much any amount of money that you like usually up to about 230,000 dollars. 529 savings plans often get a “bad rap” because they have a lot of fees attached to them (largely because they are tax-free or nearly so). However, there are also a lot of good things about 529 investing not just for the person going to college, but also for the other people in their lives.

Here are 3 things that you need to know about 529 savings plans that you might not have considered:

1. You can donate large lump sums that then grow tax free.

If you are planning to start saving for college, then you may be considering using a 529 investing plan. These plans are great because they often come with tax benefits and they may also offer sign up bonuses. In addition, they often garner more interest than traditional savings accounts and may even enable you to deduct a monthly amount from your paycheck before you pay taxes on your earnings.

If you are considering starting a savings program so that you or a loved one can attend college, you should definitely investigate your 529 options. Section 529 of the tax code stipulates that you can save a certain amount of money out of your income for education at a low- or no-tax rate. Furthermore, these savings can be invested in a variety of ways to garner more and higher interest to help you with future tuition bills.

Private scholarships can actually reduce parts of your financial aid package. How? Colleges must consider outside scholarships as a student’s financial resource, available to pay for education costs. If a college financial aid office meets your full financial need, government regulations specify that any scholarship money you win lowers your need figure on a dollar-for-dollar basis. What should matter to you is which types of your aid are reduced or eliminated -- self-help aid (loans or work-study) or need-based grants.