Coverdell Education Savings (ESA)
Prepare for future education expenses with a tax-advantaged investment account designed specifically for that purpose. Set aside any amount, up to $2,000 annually per child, and watch your tax-free dividends grow alongside your kids.
When the time comes, you can make a tax-free withdrawal to pay for qualified expenses like tuition and fees, books, computers, and more. Ensure your children can get the education they need to succeed in the future, today!
- Save to fund your children's, grandchildren's, nieces', or nephews' education
- No setup or annual fee
- Dividends grow tax-free
- Withdrawals are tax-free when used for qualified education expenses*
- Designated beneficiary must be under 18 when contributions are made
- $2,000 maximum annual contribution per child
- Contributions are not tax deductible
- Certain income limits apply for contributions**
- The money must be withdrawn by the time beneficiary turns 30***
- The ESA can be rolled over without penalty to another family member
- Funds can be deposited into our ESA savings account and ESA Certificates of Deposit (CD)
- $500 minimum deposit to open an ESA CD
- $100 minimum deposit to earn dividends on the ESA savings account
*Subject to some minimal conditions. Consult a tax advisor.
**Consult a tax advisor.
***Or older for special needs beneficiary.