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Coverdell Education Savings Account

An Education Savings Account Can Make the Difference

OPEN YOUR ESA NOW

 

Stack of money
Really High Dividends
calendar with $
No Monthly
Maintenance Fees

Create an easier transition into college for your student by setting up a Coverdell ESA — a tax-free safe place to grow funds with competitive dividends.

  • Set aside funds for your child's education
  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses1
  • Designated beneficiary must be younger than 18 when contributions are made
  • To contribute to an ESA, certain income limits apply2
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 30
  • The ESA may be transferred without penalty to another member of the family
  • No minimum deposit to open

Truth in Savings Dividends Disclosure

Truth in Savings Interest Disclosure

1. Qualified expenses include tuition and fees, books, supplies, board, etc.
2. Consult your tax advisor to determine your contribution limit.
3. Those earnings are subject to income tax and a 10% penalty.