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.
Tell me more...
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.
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
|
Savings Type |
Min. to Open |
Dividend Rate |
APY* |
|---|---|---|---|
|
Savings Type Coverdell Education Savings Accounts with Balance of $0 to $24.99 |
Min. to Open $100 |
Dividend Rate 0.30% |
APY* 0.30% |
|
Savings Type Coverdell Education Savings Accounts with Balance of $25 - $99.99 |
Min. to Open $100 |
Dividend Rate 0.60% |
APY* 0.60% |
|
Savings Type Coverdell Education Savings Accounts with Balance of $100 - $999 |
Min. to Open $100 |
Dividend Rate 0.70% |
APY* 0.70% |
|
Savings Type Coverdell Education Savings Accounts with Balance of $1,000 - $9,999 |
Min. to Open $100 |
Dividend Rate 0.90% |
APY* 0.90% |
|
Savings Type Coverdell Education Savings Accounts with Balance of $10,000 and up |
Min. to Open $100 |
Dividend Rate 1.10% |
APY* 1.11% |
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
Complete the Contact Form and we’ll get in touch.
Please don’t supply confidential information such as member number or password.
(325) 677-2274 – call or text
(800) 677-6770 – calls only
Disclosures
Photo Credit: ‘Grandparents & Grandkids in Boat’ goes to Sandy McGraw.