A Coverdell education savings account (ESA) may be an easy way to start saving for a child’s education. Contributing to a child’s ESDA will help jump-start his/her savings – and provide tax-free money later – to pay for education expenses.
Start saving for the education of the young people in your life with a Coverdell Education Savings Account! This account can play an important role in helping pay for qualified educational expenses. As an added bonus, we’re rewarding you with an attractive rate of 3.00% (3.034% APY)!
You can contribute to a Coverdell ESA even if you don’t have earned income. The contribution is limited to $2,000 a year for each beneficiary until the age of 18. Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax-free until distributed. The beneficiary will not owe tax on the distributions if they are less than a beneficiary’s qualified education expenses at an eligible institution. This benefit applies to qualified higher education expenses as well as to qualified elementary and secondary education expenses.