Coverdell Education Savings Account

Cover education expenses with tax-free savings.

A group of college students studying together

A Smart Investment

As tuition continues to rise, so does the need to save for related expenses. 

With a Coverdell Education Savings Account, you can help the student in your life cover the cost of their elementary, secondary, and post-secondary education. Your earnings will grow tax-free and can be withdrawn without tax penalty any year the beneficiary has qualified education expenses.


Open an Account

Coverdell Education Savings 101

Who can contribute?

You can contribute to a Coverdell Education Savings Account as long as the beneficiary, who does not have to be your child, is under the age of 18. Certain income restrictions apply.

Are my contributions tax deductible?

No, your contributions cannot be deducted.

How much can I contribute annually?

$2,000 per beneficiary

When can I withdraw money?

The account beneficiary can make tax-free withdrawals during any year they have qualified education expenses, such as tuition and fees, room and board, books, and computers.

To avoid tax and penalties, the account must be fully withdrawn prior to the beneficiary turning 30 years old. You can also change the beneficiary to a qualifying family member, as long as they are under the age of 30.

We do not offer tax advice. You should always consult with a tax professional when it comes to your contributions and deductibility. 

Please see our Truth-In-Savings Disclosure for full details and our Rates Page for the most current rates.

We are here to help you.

Working together to find solutions to your banking needs

Open an Account