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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.

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graduation cap
  • 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.

ESA Rates

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.

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