I know this has been covered here before, but what is the best way to create an account that would hold the future college savings for my one month old daughter(its only been a month? It feels like an eternity). One that multiple people could contribute money to, but that could be managed by just me, or just my wife, or jointly between the two of us(this would be the ideal).

Also, Im not sure Id want it to be solely for college, because what if she gets a scholarship or something? Would the money then be useless?

I've been reading about some of the options, but none of them seen fantastic. Anyway, smart people lurk here from time to time

So any thoughts?

Congratulations!

There are a few possibilities for saving. You could do an UGMA/UTMA but then she'd automatically get the money at 21 even if she uses it to pay an initiation fee to a cult. Not necessarily the best way. You can set up your own trust with your own provisions. There are 529 plans but they restrict who can contribute - not a problem if only parents and grandparents will chip in but can limit what aunts and uncles do.

You also need to think about who's name is on the account. Financial aid will count everything in her name but only part of what is in yours. That's a big deal that is seldom discussed and is another drawback to 529 and UGMA.

If you could be sued, have potential creditors, etc. you might want to protect it from them. Just some thoughts.

Keep reading widely. You have time.

Thanks.

Thankfullly, due to dilligent reading of GRS, I dont have much in the way of debts or creditors hunting for me.

Id like to have just one place for everyone to contribute to, rather than one place for us and grandparents, and another for aunts/uncles and various others.

The UTMA seems like a good idea, but if she cant get the money until 21, but needs financial aid at 18... could she be SOL for 3 years regarding college tuition costs?

The problem with UTMA is not that she can't get it until 21. The problem is that you have no choice but to give it all to her then, even if she is going to squander it. That could also screw up need-based financial aid for the last year or two of college and for grad school.

Lets get creative: the money could be put into an EE or I Bond since you don't have to pay on the taxes if the money goes towards education if I recall correctly.

Max out your Roth for both you and your wife: that money can be used for education and if she gets a full ride scholarship it can just stay there working for you. You wouldn't have to worry about paying taxes on the deferred accounts for her if she does get a scholarship or financial aid with a maxed Roth.

I asked a similar question a few months ago. I outlined a number of options for myself, so I'll link rather than rewrite or copy and paste:
viewtopic.php?f=2&t=36252

As far as "only the parents or grandparents can contribute to a 529." That may be true, however, unless you and your extended family are throwing around large sums, the contributions can be "laundered" easily enough by paying it to the parents who then contribute it to the 529.