College Funds

A Coverdell ESA is an investment vehicle targeted toward educational expenses rather than toward retirement. As with a Roth IRA, however, Coverdell ESAs allow you to make an annual non-deductible contribution to a specially-designated investment trust account. Withdrawals from the account are typically tax-free.

Start saving for your child’s future today!

More Details about Coverdell ESAs

  • The total yearly contribution limit per child is $2,000 per year. If a child is the beneficiary of more than one Coverdell ESA, total contributions to all accounts cannot exceed this $2,000 limit without incurring a penalty.
  • Contributions are not tax-deductible, but deposits to an ESA grow tax-free until withdrawn.
  • Coverdell ESAs aren’t just for college – you can also use your savings to pay for K-12 expenses tax-free.
  • A Coverdell ESA must be used by the time the child turns 30; the funds must be given to the beneficiary or rolled over to a Coverdell ESA for another family member.

Savings Rates

Savings Rates

Account TypeDividend RateAnnual Percentage YieldMinimum Opening/Required Balance
Membership Share (Savings)0.05%0.05%$25.00
Coindexter Club (Youth Savings - Under 13 years of age)0.05%0.05%$5.00
Teen Flex (Teen Savings - 13-15 years of age)0.05%0.05%$15.00
Share Draft (Checking)0.00%0.00%$0.00
Holiday Club*0.05%0.05%$0.00
*Withdrawals made more than 7 days after the account is opened and before the maturity date of October 18, 2024 are subject to a $5.00 penalty.

Rates effective 2/27/2024.

Money Management**

Tier 10.05%0.05%$0.00 to $1,999.99
Tier 22.96%3.00%$2,000.00 to $20,000.00
Tier 33.20%3.25%$20,000.01 plus
**Withdrawals must be $500.00 or more and limited to 3 withdrawals per month at no charge.
Excess withdrawals will be charged a $1.00 thereafter.

Rates effective 2/27/2024.
IRA Share0.05%0.05%$25.00
Roth IRA Share0.05%0.05%$25.00
Coverdell Educational IRA Share0.05%0.05%$25.00
Health Savings***$0.00
Tier 10.05%0.05%$0.00 to $1,999.99
Tier 20.85%0.85%$2,000.00 to $20,000.00
Tier 31.04%1.05%$20,000.01 plus
***Fees for stop payment, overdrawn/NSF share drafts, fee-based ATM withdrawals, replacement cards and the like, may not be deducted or withdrawn from health savings accounts. These fees shall be deducted from other accounts in which the health savings account owner has an interest.

Rates effective 2/27/2024.

How can OTIS work for you?

If you live, work, worship, or attend school in Androscoggin, Cumberland, Franklin, Kennebec, Lincoln, Oxford, Sagadahoc, Somerset, or York County, you’re eligible to be part of OTIS FCU – and we’d love to have you join our community.