Coverdell Education Savings Account (CESA)

College is costly — but a little pre-planning can go a long way. Set aside savings for your child’s college education in a CESA, where your dividends will grow tax-free.*

Start saving for college

 

Set aside savings for a child's college education in a Coverdell Education Savings Account (CESA), where your dividends will grow tax-free.* Withdrawals are tax-free and penalty-free when used for qualified education expenses* before he or she turns 30.** As an added bonus, there’s no penalty to transfer the account to another member of the family if there are unused funds. Ready to start saving for college? 

 

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Features & Benefits

  • Set aside funds for your child's education
  • No setup or annual fee
  • Dividends grow tax-free*
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses*
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply**
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 30***
  • The ESA may be transferred without penalty to another member of the family
  • $100 minimum deposit to open
  • CESA Frequently Asked Questions (PDF)



















































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coverdell education savings account

Start saving for college

 
Setup a Coverdell Education Savings Account today and start saving with special tax advantages for your child's future***.
 

*Qualified expenses include tuition and fees, books, supplies, board, etc.

**Earnings withdrawn after he or she turns 30 are subject to income tax and a 10% penalty.

***Consult your tax advisor to determine your contribution limit.