OT Savings Bonds

[Ref]

My brother is about to be a dad. Instead of getting the newborn a bunch of stuff, I was thinking about getting him a couple of cute things and a savings bond. Does anyone have any advice on what type to get or how to get them?

Thanks
Ref

[gemini3]

I'm not sure what type would be the best, but there's a lot of information on this site.  It might help you make a decision.

Congrats to your brother!

http://www.savingsbonds.gov/indiv/products/products.htm

[mistoffolees]

Savings bonds are a great gift, but you might also consider starting a Section 529 plan for college expenses.

In fact, if you and your brother sign up for upromise.com, you will be continually adding to the college fund even with expenses you'd be making anyway (I signed up 4 years ago and now have $3,600 in the upromise account, but that's not going to be typical because it includes some business expenses).

In case you're not familiar with them, Section 529 plans allow you to save money for college and the earnings are tax deferred until withdrawn to pay college expenses. At that time, they're taxed at the child's rate. If the child decides not to go to college, you can either transfer the money to a relative who DOES have college expenses or you can even get it back (but you'll pay the back taxes and a 10% penalty, so this isn't something you'd want to do unless you have to).

I'm a big believer in 529 plans. They can go a long way toward paying for college.
http://www.savingforcollege.com/