Coverdell Education Savings Account

A Coverdell Education Savings Account from ESL can help you save for the children you care about. Choose from Certificate or Money Maker Account options. And there are some great tax advantages, too.

• Certificate options include a variety of fixed-rate and variable-rate with terms ranging from 31 days to 120 months
• Money Maker Accounts let you move money to other qualified accounts as needed
• Balances are eligible for our exclusive Owners’ Dividend^*
• Make contributions (deposits) easily at any ESL branch
• Disbursements of contributions and earnings are tax-free when used to pay for qualified education expenses (consult your tax advisor)

Please remember that the money you contribute has already been taxed, so your contributions are not tax-deductible.

Coverdell Education Savings Accounts are managed by responsible persons such as parents, grandparents, or legal guardians for beneficiaries who are minors under legal age.

• The maximum annual contribution for each minor beneficiary is $2,000 per year
• Contributions can be made until the beneficiary reaches age 18 (contribution timeframe is longer for beneficiaries with special needs)
• Anyone can make contributions, including corporations and other entities
• Distributions can be used to pay for tuition, books, supplies, and in some cases room and board
• Unused balances must be distributed to beneficiaries within 30 days of their 30th birthday (no age limits for beneficiaries with special needs)
• Funds may be transferred to another beneficiary in the same family
• Funds from one Coverdell Education Savings Account (CESA) can be rolled over to another new or existing CESA
• Distributions not used for qualified education expenses are subject to federal taxes and an IRS penalty
• Money you contribute has already been taxed, so contributions are not tax-deductible

It’s easy to open a Coverdell Education Savings Account at ESL:

• Connect with us so we can help.
• Are you a new member? Be prepared with the documentation needed to open an account. Learn more >

We look forward to helping you save for one of the most important goals of all—a child’s education.