Coverdell Education Savings Account
Formerly known as an Education IRA, the Coverdell ESA is a great way to save for a variety of educational expenses, including school uniforms, tutoring or tuition. Funds aren’t limited to higher education costs, so you’re free to use a Coverdell ESA to help pay for certain elementary and secondary educational expenses.
- Minimum deposit: $5.00
- Designated beneficiary must be under the age of 18 at the time of account creation or be a special needs beneficiary
- Dividends higher than other savings products
- Contributions are non-deductible
- Earnings are tax-deferred1
- Distributions are tax-free when used to pay for qualified education expenses
To open a Coverdell ESA account in-person, schedule an in-branch appointment.
1The IRS states that distributions are tax-free to the extent the amount of the distributions doesn't exceed the beneficiary's qualified education expenses. If a distribution exceeds the beneficiary's qualified education expenses, a portion of the earnings is taxable to the beneficiary. Amounts remaining in the account must be distributed when the designated beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. Certain transfers to members of the beneficiary's family are permitted.
*APY = Annual Percentage Yield current as of March 18, 2019. Rates subject to change at any time without notice. Fees and penalties can reduce earnings on the account.Go to main navigation