Educational Savings

Invest in Your Future with a Coverdell ESA

Education is one of the best investments you can make, and the Coverdell Education Savings Account (ESA) is a tax-advantaged way to save for your child’s education—whether for elementary, high school, or college expenses.

How a Coverdell ESA Works

Much like an IRA, a Coverdell ESA allows you to save and invest for educational expenses while taking advantage of potential tax benefits. You can open a Coverdell ESA with either an open deposit account or a Certificate of Deposit (CD), depending on your savings preferences.

·       Open Deposit Account: Earn monthly dividends on your balance.

·       Certificate of Deposit (CD): For those looking for guaranteed growth, you can invest in a CD and earn quarterly dividends, with fixed interest over the term.

Key Benefits:

·       Flexible Use: Funds can be used for a wide range of educational expenses, including tuition, books, and supplies.

·       Tax Benefits: Contributions may be eligible for tax-free growth, helping your savings stretch further.

·       Easy Management: With monthly or quarterly dividends, you can grow your savings with minimal effort.

Important Considerations:

·       Minimum Deposit Requirements: There are minimum deposit requirements for CD accounts, so be sure to review those details when opening your account.