Coverdell Education Savings Accounts (ESAs)
Educational savings accounts for every budget
ESAs (formerly known as Education IRAs) are flexible accounts that allow you to save for a child’s qualified educational expenses, including college, private high school tuition, and after-school tutoring. Even relatives and friends can contribute to an ESA for your child.
Contributions are not tax-deductible, but earnings accumulate tax-free, and distributions are tax-free if they are used to meet qualified education expenses. (Please consult your tax advisor for more information on the rules for ESAs.)
ESA certificates require a minimum deposit of $1,000. ESA Share Accounts may be opened with as little as $15, with ongoing contributions added to your account through direct deposit.
Coverdell Education Savings Account (ESA) Rates and Terms
| Account Type | Dividend Rate | APY** | Minimum Balance to open and Earn Dividend |
|---|---|---|---|
| ESA* Share Account | 0.05% | 0.05% | $15.00 |
| 6-month ESA Certificate | 0.15% | 0.15% | $1,000.00 |
| 12-month ESA Certificate | 0.25% | 0.25% | $1,000.00 |
| 18-month ESA Certificate | 0.35% | 0.35% | $1,000.00 |
| 24-month ESA Certificate | 0.45% | 0.45% | $1,000.00 |
| 36-month ESA Certificate | 0.55% | 0.55% | $1,000.00 |
| 48-month ESA Certificate | 0.65% | 0.65% | $1,000.00 |
**Annual percentage yield.
Rates may change after the account is open. Fees could reduce the earnings on the account.
There is a substantial penalty for early withdrawals on ESA Certificates.
Rates are effective April 1, 2022. All rates are subject to change without notice.