Coverdell ESAs

Start investing in your child's future today with an OTIS Coverdell ESA.

Coverdell Educational Savings Accounts

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.

Is a Coverdell Educational Savings Account right for you? Learn more:
  • 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  • Contributions are not tax-deductible, but deposits to an ESA grow tax-free until withdrawn.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.


Read more about Coverdell ESAs here.

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
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, 2021 are subject to a $5.00 penalty. Rates effective 4/1/2021.

Savings Rates effective 11/1/2020.

Money Management**

Rates Effective 11/1/2020

Tier 10.03%0.03%$0.00 to $1,999.99
Tier 20.15%0.15%$2,000.00 to $20,000.00
Tier 30.20%0.20%$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.
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 10.03%0.03%$0.00 to $1,999.99
Tier 20.15%0.15%$2,000.00 to $20,000.00
Tier 30.20%0.20%$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payment, overdrawn/NSF share drafts, fee based ATM withdrawals, replacement cards and the like, may not be deducted or withdrawn from health savings accounts.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.Minimum balance required to obtain the Annual Percentage Yield for the dividend period. All Rates are subject to change without notice. Truth in Savings Disclosure