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.
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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- Contributions are not tax-deductible, but deposits to an ESA grow tax-free until withdrawn.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
Saving Rates
Account Type | Dividend Rate | Annual Percentage Yield | Minimum 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 |
Share Draft (Checking) | 0.00% | 0.00% | $0.00 |
Clubs | 0.05% | 0.05% | $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, 2021 are subject to a $5.00 penalty. Rates effective 4/1/2021. Savings Rates effective 11/1/2020. |
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Money Management** Rates Effective 5/12/2022 | $2,000.00 | ||
Tier 1 | 0.05% | 0.05% | $0.00 to $1,999.99 |
Tier 2 | 0.25% | 0.25% | $2,000.00 to $20,000.00 |
Tier 3 | 0.35% | 0.35% | $20,000.01 plus |
**Withdrawals must be $500.00 or more and limited to 3 withdrawals per month at no charge. Excess withdrawal will be charged a $1.00 thereafter. Rates effective 4/1/2021. |
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IRA Share | 0.05% | 0.05% | $25.00 |
Roth IRA Share | 0.05% | 0.05% | $25.00 |
Coverdell Educational IRA Share | 0.05% | 0.05% | $25.00 |
Health Savings*** | $0.00 | ||
Tier 1 | 0.05% | 0.05% | $0.00 to $1,999.99 |
Tier 2 | 0.25% | 0.25% | $2,000.00 to $20,000.00 |
Tier 3 | 0.35% | 0.35% | $20,000.01 plus |