Now that you have an idea of how much college might cost for your children, you need to decide which type of account will best serve your saving needs.

There are two types of tax-advantaged plans designed to help parents finance higher education: Education Savings Accounts (also known as ESAs or Coverdell accounts) and 529 plans.

Both types of accounts offer tax-deferred growth. As long as the proceeds are used to finance qualified education expenses (like tuition, books, supplies, computers, and room and board), the money—including any gains and investment income—can be withdrawn tax-free. And both plans are considered to be your assets, not your child’s, which means their impact on financial aid is significantly reduced.

Even if you get a late start saving for college, remember: saving some is better than saving none.

But there are some important differences in terms of eligibility and the amounts you can contribute. Only couples with adjusted gross incomes of less than $220,000 are eligible to open ESAs (for individuals, that figure is $110,000), and contributions are limited to a maximum of $2,000 per year.

On the other hand, 529 plans are open to anyone, regardless of income, and your lifetime contributions can total $200,000 or more (the amounts vary by state) per beneficiary. Additionally, if you have the resources, you can jump-start your children’s college funds by depositing up to $60,000 in a single year (a couple can invest up to $120,000) without incurring a gift tax, as long as you make a special election and the contribution is your only gift to that beneficiary for five years (the IRS views the gift as $12,000, or $24,000 for a couple, over five years).

Some people use custodial accounts to save for college, but due to their tax benefits, 529s and ESAs are generally considered better choices for college savings.

See the table below for a side-by-side comparison of how these different choices stack up.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and are not intended to represent results you should expect in the future. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.