What type of savings account is a 529 college savings account? Money Market Account Certificate of Deposit (CD) Specialty Savings Account High-Yield Savings Account

## Step 1<br />A 529 college savings account is a type of savings account that is specifically designed to encourage saving for future education costs. This account is named after Section 529 of the Internal Revenue Code, which allows for tax-free earnings when the funds are used for qualified higher education expenses.<br /><br />## Step 2<br />This account is not a Money Market Account, Certificate of Deposit (CD), or High-Yield Savings Account. These types of accounts are typically used for general savings and do not have the same tax benefits or restrictions as a 529 account.<br /><br />## Step 3<br />The 529 account is considered a Specialty Savings Account because it is designed for a specific purpose, which is saving for education expenses. This account allows for tax-free earnings when the funds are used for qualified higher education expenses.