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Coverdell Education Savings Accounts

Save for a loved one’s education

Give your child or grandchild a head start

Coverdell accounts are not just for college costs. They can be used for a variety of educational purposes in grades K-12.

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Parents, grandparents and other relatives can contribute as long as the total annual contribution per child doesn’t exceed $2,000.

Earnings on and withdrawals from a Coverdell ESA are tax free if used for educational purposes. However, contributions to Coverdell accounts are not tax-deductible.

A Coverdell account at ATFCU can be opened with a $100 deposit.  Going forward, a $100 minimum balance keeps the account active.


McGraw family at Santa Calls statue

How can funds from a Coverdell account be used?

  • College tuition
  • Private school tuition for grades K-12
  • Books
  • Educational supplies and equipment
  • Computer equipment if it is used primarily by the account beneficiary
  • Academic tutoring

See today’s rates

Coverdell Education Savings Rates

Savings Type

Min. to Open

Dividend Rate


Savings Type

Coverdell Education Savings Accounts with Balance of $100+

Min. to Open


Dividend Rate




Coverdell Savings FAQs

Yes, but each beneficiary can only receive a total of $2,000 per year no matter how many accounts are opened for them.

Yes. Single taxpayers must have an adjusted gross income of $95,000 or less in order to contribute. The level is $190,000 for those filing jointly.

No, there are significant differences. Please refer to the chart found on our College Financing page to view them.

Contact Us

Open a Coverdell ESA in person
Find a Location Near You

Complete the Contact Form and we’ll get in touch.

Please don’t supply confidential information such as member number or password.

Call or Text

(325) 677-2274 – call or text

(800) 677-6770 – calls only


Photo Credit: ‘Grandparents & Grandkids in Boat’ goes to Sandy McGraw.