ARIZONA

Arizona Family College Savings Program

Type: Savings

Phone: 800-888-2723 (College Savings Bank); 888-667-3239 (Securities Management and Research)

State tax deduction for residents: No deduction

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings (with additional penalties for early withdrawal from CollegeSure CD)

Minimum/maximum contributions: $250 / $262,000

With the CollegeSure CD, returns are tied to an index of costs at private colleges nationwide, so while similar returns are likely in coming years, they won't match the double-digit increases at many public colleges. You're guaranteed to earn a minimum of 2% annually, and deposits up to $100,000 are FDIC-insured.

You buy CDs with maturities matched to the beneficiary's expected college enrollment. There are early-withdrawal penalties but no annual expenses. This is a very good choice for parents of high schoolers-and for stock-market-shy parents of younger children.

Family College Savings Program (Securities Management & Research)
Returns in the 15 stand-alone mutual funds available through this plan have been unimpressive, and expenses are above average, ranging from 1.26% to 2.10% for the stock funds. But if you wanted to bet your kid's college fund on a rebound in technology stocks, this would be the place, as it's one of the few 529 plans with a tech-stock fund.

Waddell & Reed InvestEd Plan
The conservatively invested age-based portfolio and the three fixed portfolios have lagged their peers in the past year. Shares are sold through Waddell & Reed and Legend advisers only, and annual expenses are high, up to 2.14% in some share classes. There's a $10 enrollment fee.

State College Savings Plans