Plan for Their Future
Planning for the costs associated with higher education can make the burden of paying for college easier to bear. One way to do that is to open a Coverdell Education Saving Account (ESA).
Structured much like a Roth IRA, Coverdell ESAs allow you to put aside money now for qualified expenses later while reaping the benefits of tax-free earnings.
Anyone can make deposits, or contributions, to a Coverdell ESA on behalf of the child minor for whom the account is opened, up to $2,000/year. Contributions are made from post-tax earnings, which means that contributions can’t be deducted from your taxable income1.
When you withdraw from a Coverdell ESA for the qualified educational expenses of the minor, any interest withdrawn is tax-free2. All of the funds in a Coverdell ESA must be distributed to the minor by the time they turn 30.
Compare Coverdell ESA Products
| Product | Minimum Balance | Annual Maintenance Fee | Withdrawals |
|---|---|---|---|
| Coverdell ESA Savings | None | $10/plan | May be subject to IRS early-withdrawal penalties. |
| Coverdell ESA CD | $1,000 | $10/plan | May be subject to IRS early-withdrawal penalties and Fortis Edge Capital interest penalties. |
Ready to get started?
To open a Coverdell ESA, stop by one of our nine convenient branches, call us at 206.398.5500 or toll-free at 718.952.1741, or fill out the form below to get started.
Not a member yet?
Current Rates
| Coverdell ESA: | 0.15%-1.06% APY* |
| Student Savings: | 0.05% APY* |
*APY Effective as of December 01, 2021. See disclosures for tiers and complete details by clicking on the product name above.
Llamanos
Por favor llame al 206.398.5594 para comunicarse con nuestros representantes que hablan Español a fin de obtener detalles o si tiene preguntas.