DELAWARE

Delaware College Investment Plan

Type: Savings

Phone: 800-544-1655

State tax deduction for residents: No deduction

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $500 / $250,000

Fidelity runs Delaware's savings plan and offers four investment choices -- an age-based portfolio (with asset allocations that tip toward stocks until the junior high school years), all-stock, 70% stock and 100% fixed income.

Despite a fairly standard asset allocation in the age-based portfolio, this plan has underperformed in all portfolios that hold primarily stocks. (The portfolios holding mostly bonds have performed well, however.) The static funds also have underperformed over the last five years.

On the plus side, costs are reasonable. Expenses are about 1% per year, plus a $30 annual maintenance charge that can be waived with automatic contributions or a $25,000 account balance.

State College Savings Plans