A Coverdell Education Savings Account (ESA), formerly known as an Education IRA, is a savings vehicles designed to offer tax-free asset growth in the name of education. Eligible individuals may contribute up to $2,000 per year on behalf of a child up to age 18. The structure here is a bit different. Instead of focusing solely on college and grad-school expenses, investors can currently use Coverdell assets to pay for anything from kindergarten on up.
Please be aware that there are income guidelines to establish a Coverdell plan. The contributor's annual income must be below a specific minimum (currently $220,000 for married couples filing jointly). All contributions are made on an after-tax basis.
Education Savings Current Rates*
* Certificate Accounts are compounded and paid quarterly and/or at maturity.
Educational Savings Accounts have a Fixed Rate.
APY = Annual Percentage Yield.
Early withdrawal penalties apply. Rates are subject to change without notice.
NCUA | Accounts in the same name are insured to an aggregate total of $250,000 by the National Credit Union Share Insurance Fund.