I would check with your bank on this, but CD's are probably a good option- especialy in this economy! I think they vary in how long you let them grow- the longer you leave them, the more interest they acquire. Good luck!
I use the MN college savings plan for my children and my nephews. It's a 529 plan through TIAA Cref. The cool thing is that MN has a matching program for MN residents. I believe you have to make less than 80k per year to qualify for the match.
You can be as conservative or as aggressive as you want with the investments. It can all be managed online and you can set up separate accounts for each child, with one log-in. Like I said, I have accounts set up for each of my children and for my nephews. I do not give my nephews birthday or Christmas gifts, instead, I put money in their college savings plan.
To check out the plan, go to http://www.mnsaves.org.
To teach my kids the importance of saving, I have also set up savings accounts with Wells Fargo - but the balance is never more than $50. I use it more as a learning tool for them.
We have used the Edvest 529 plans. Contributions to the plan are tax deductible (just like Roth). The funds are available for educational expenses only but can be transferred to anyone in the family (I think) as long as the expenses are for education. So if one kid ends up not needing them for whatever reason, you or your other children can use. The definition of educational expenses is fairly broad as I recall. I would definitely look into that option.