Coverdell Education Savings Account (ESA)
You don't need an MBA to know that at the rate higher education costs are rising, today's kids are going to need money saved up to pay for it. Get the process started early with an interest-bearing account.
- Save for a child's future education expenses
- Competitive rates above most savings accounts
- Interest grows tax free
- Withdrawals are tax free when used for qualifying higher education needs*
- Contributions are NOT tax deductible
- Contributions can be made until the child is 18 years old
- Funds must be distributed when recipient reaches age 30
- Contributors do not have to be related to recipient
- $2,000 annual contribution limit per beneficiary
- $50 minimum deposit to open
*Early withdrawals for non-qualifying expenses may result in a penalty charged by the bank or in a substantial tax penalty under IRS regulations.