Mutual-fund giant Fidelity recently moved to cut the program fees for some of its 529 college savings accounts by as much as 50 percent, adding to competition in the 529 field. 

Fidelity's change only applies to plans in five states and the cuts only apply to program fees (the mutual funds in the 529 plans also carry expenses), but other state plans have been slashing fees as well. Colorado's Vangard/Upromise-managed plan and the TIAA-CREF managed plan in Kentucky have reduced fees in the last month.

Fees are only one part of choosing a 529. State-specific plans often give you a state tax deduction (in addition to the tax-shelter any 529 provides), but if the ones offered in your state are expensive or have a poor performance history, a general one offered by a low-cost mutual fund company may be a better option. You'll also need to decide if you want to make the investment choices yourself, or buy one through a broker and get professional advice. Of course, that may entail higher fees and an upfront sales charge of 1 percent to 5.7 percent of your investment. Consumer Reports Money Adviser here offers advice on how to get the most out of your 529 plan and ratings of the best and worst 529 plans available.

Also visit SavingforCollege.com, a site devoted to 529s, which has ratings for plans in all 50 states, a list of their highest-rated plans, and a recent study on 529 plan fees.—Chris Fichera