Save for a loved one’s education
Give your child or grandchild a head start
Coverdell Education Savings Accounts can be used for a variety of educational purposes in grades K-12 and for college expenses.
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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.
There are income limits on who can contribute to a Coverdell ESA account. Single filers with a MAGI (modified adjusted gross income) of more than $110,000 are ineligible as are couples with a MAGI above $220,000.
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.
Eligible Expenses
- 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
|
Savings Type |
Dividend Rate |
APY* |
|---|---|---|
|
Savings Type Coverdell Education Savings Accounts with a Balance of $5 to $99.99 |
Dividend Rate 0.25% |
APY* 0.25% |
|
Savings Type Coverdell Education Savings Accounts with a Balance of $100 - $999.99 |
Dividend Rate 0.35% |
APY* 0.35% |
|
Savings Type Coverdell Education Savings Accounts with a Balance of $1,000 - $9,999.99 |
Dividend Rate 0.55% |
APY* 0.55% |
|
Savings Type Coverdell Education Savings Accounts with a Balance of $10,000 and up |
Dividend Rate 0.70% |
APY* 0.70% |
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 $110,000 or less in order to contribute. The level is $220,000 for those filing jointly.
There are significant differences between the two plans. Please refer to the chart found on our College Financing page to view them.
Contact Us
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(325) 677-2274 – call or text
(800) 677-6770 – calls only
Disclosures
Photo Credit: ‘Grandparents & Grandkids in Boat’ goes to Sandy McGraw.