Coverdell Education Savings
The prospect of funding a college education may seem daunting, but it doesn't have to be. Coverdell Education Savings allows you to set aside funds for your child's college education.
Contributions to a Coverdell ESA aren't tax deductible, however, no taxes are due on accrued interest. Withdrawals are also tax-free. Invest in your child's future by starting to save for it today.
- No setup or annual fee
- Tax-free interest as account grows
- Withdrawals are tax-free when used for qualified education expenses*
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply**
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- Subject to dormancy fee for account inactivity***
- FDIC insured
*You must be 18 years or older to apply*
Fees may reduce earnings.
*Qualified expenses include tuition and fees, books, supplies, board, etc.
**Consult your tax adviser to determine your contribution limit.
***Accounts with no activity for one year and balance less than $300.00 will be assessed a $5.00 monthly dormant fee. Children under 18 are exempt from dormant charges.